Table of contents:
Car Insurance Update India – The importance of the type of vehicle insurance (own damage, third party); By distribution channels (private agents, brokers, banks, others) By application (commercial (light four-wheelers, heavy four-wheelers, other commercial vehicles), private motor vehicles); and regions (north, east, west, south)
Item: UMBF212864 Category: Banking, Financial Services, Insurance, Industry Reports Tags: India Motor Vehicle Insurance Market 2024, India Motor Vehicle Insurance Market Analysis, India Motor Vehicle Insurance Market Growth, India Motor Vehicle Insurance Market credit growth, Indian motor vehicle market growth Market trends
Car Insurance Update India
The Indian auto insurance market is valued at USD 12.15 billion by 2023 and is expected to grow at a CAGR of 6.31 percent during the forecast period (2024-2032). Due to the growth of automobile industry in India.
How To Get The Most Out Of Your Car Insurance?
Car insurance is a part of general insurance that covers the owners of different types of vehicles against repairs and theft. These insurance policies are offered by various public and private financial institutions and banks regulated by the Insurance Regulatory Development Authority of India (IRDAI). The insurance policy covers most unused items and their damage during the policy period.
The Indian auto insurance market is valued at USD 12.15 billion by 2023 and is expected to grow at a CAGR of 6.31 percent during the forecast period (2024-2032). Increasing car sales in the country is one of the major factors driving the growth of the market. The auto industry has benefited from sales growth in recent years, given the country’s growing middle-class population and rising disposable incomes.
This increase in sales has led to the mandatory payment of road tax for the purchase of motor vehicles, as well as the requirement of primary and third party insurance. Also, with various policy changes, the demand for car insurance will increase further in the coming years.
Additionally, motor insurance accounts for a significant share of the general and health insurance market in India. According to IRDAI, the total auto insurance premium in India has increased from INR 70,433.48 million in 2021-22 to INR 81,280.04 million in 2022-23. The public sector has the largest share of vehicle insurance, accounting for about 80% of the market.
Car Insurance Claim Online
This section discusses key market trends impacting various segments of the Indian car insurance market as identified by our team of research analysts.
Electric vehicles are a growing segment due to increasing consumer concern for sustainability. Electric cars have many advantages over conventional fuel-powered cars, such as lower maintenance costs in the long run and zero emissions. Car insurance is expected to increase in the coming years. According to Auto Sales, total sales of electric vehicles are expected to reach 1.53 million in 2023, a 50 percent increase over 2022.
Additionally, government initiatives to provide free road tax in several states have boosted sales of electric vehicles in categories such as cars, two-wheelers and e-rickshaws, contributing to the growing vehicle insurance market in India.
Considering the growth of vehicles in the electric vehicle segment, the demand for vehicle insurance in the segment will increase in the coming years, namely 2024-2032.
How Much Does Car Insurance Cost In India? » Cargayan
North India has a significant share in the car insurance market. The growth factor for the North Indian region is the high sales of cars in the previous years. The region includes the states of Uttar Pradesh, New Delhi, Punjab, Haryana, Jammu and Kashmir, which have large populations and have seen a steady increase in vehicle ownership in recent years. According to the Society of Indian Automobile Manufacturers (SIAM), by 2023, Uttar Pradesh, New Delhi and Haryana will account for 10.04%, 5.94% and 6.60% of vehicle sales in India respectively. The same trend was observed when the sales of two-wheelers were observed with sales of 14.35%, 2.5% and 2.89% respectively during the same period.
The demand for car insurance is expected to increase further in the coming year, 2024-2032, due to high car sales in the North Indian region.
The Indian auto insurance market is competitive and fragmented with multiple regional and market players. Key players are adopting different growth strategies to increase their market share, including partnerships, agreements, collaborations, new product launches, geographic expansions, mergers and acquisitions. ICICI Lombard General Insurance, Bajaj Alliance General Insurance, Tata AIG General Insurance, HDFC ERGO General Insurance, New India Assurance Co. Ltd., United India Insurance Company Ltd., The Oriental Insurance Co. Bharti Axa General Insurance, Reliance General Insurance, IFFCO Tokyo General Insurance.
In 2022, IRDAI allowed general insurance companies to introduce pay-as-you-drive, how-you-drive and float policies as add-ons to two-wheeler and one-owner auto insurance policies.
Is It Possible To Renew Your Expired Car Insurance?
In 2023, ICICI Lombard launched an AI-powered digital campaign, Claim Your Claim. The campaign aims to tap into the under-penetrated general insurance market in India.
Motor insurance market in India can be modified according to requirements or other market segments. In addition, UMI understands that you may have your own business needs; So contact us and get a report tailored to your needs.
Answer: The Indian auto insurance market is estimated to be valued at USD 12.15 billion by 2023 and is expected to grow at a CAGR of 6.31% during the forecast period (2024-2032).
Ans: Increasing demand for vehicle insurance in the automotive industry is one of the key factors driving growth.
How Is Amount Calculated For Car Insurance In India?
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Analyzing the historical market, assessing the current market and forecasting the future market for the Indian car insurance market are the three main steps taken to develop and analyze the Indian car insurance market in key regions of India. Historical market figures were collected and secondary research was carefully conducted to estimate the current market size. Second, several conclusions and hypotheses were taken into account to confirm these concepts. Comprehensive primary interviews were also conducted with industry experts across the value chain of the Indian auto insurance market. After identifying and confirming the market size through preliminary interviews, we used a top-down/bottom-up approach to predict the total market size. After that, market segmentation and information triangulation methods were followed to calculate and analyze the market size of industry segments and sub-segments. The detailed procedure is described below.
Extensive secondary research was conducted to obtain the historical market size of the Indian car insurance market through internal company sources such as annual reports, financial statements, performance presentations, press releases, magazines, news articles and external government sources. Newspapers, competitor publications, industry reports, third-party databases, and other reliable publications.
After deriving the historical market size of the Indian car insurance market, we have conducted extensive secondary analysis to gather historical market insights and segment them into key regions into various segments and sub-segments. Key segments such as Motor Insurance type, application, and distribution channel are covered in the report. An additional regional/country level analysis was conducted to assess the general acceptance of pilot models in that region.
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After deriving the historical market size of various segments and sub-segments, we have conducted a detailed factor analysis to estimate the current market size of the Indian car insurance market. Further, we conducted a factor analysis of the Indian car insurance market using dependent and independent variables such as vehicle insurance type, usage, distribution channel etc. A detailed analysis of top partnerships, mergers, acquisitions, business expansions and product launches on the supply and demand side of the Indian auto insurance market.
Current Market Size: Based on the insights that can be gained from the above 3 steps, we arrive at the current market size, market share of key players and segments of the Indian car insurance market. All necessary stock splits and market breakdowns were determined using the secondary methods described above and confirmed through primary interviews.
Valuation and Forecasting: Market valuation and forecasting takes into account various factors, trends, constraints and opportunities available to stakeholders. After analyzing these factors, appropriate forecasting techniques such as top-down/bottom-up approaches are used to generate market forecasts till 2032 for various segments and sub-segments in major Indian markets. Research methodology for estimating market size includes the following.
Primary Research: In-depth interviews were conducted with key opinion leaders (OCs) including top leaders in key regions (CXO/VP, Head of Sales, Head of Marketing, Head of Operations, Regional Head, Country Head, etc.). Then, the primary findings were summarized and statistical analyzes were performed to confirm the hypotheses. Input from primary research was combined with secondary research so that information was transformed into tangible insights.
What Is Yearly Car Insurance Cost In India?
Data triangulation
