Asia-Pacific Car Insurance Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 181.18 Billion |
| Market Size (2029) | USD 236.23 Billion |
| CAGR (2024 - 2029) | 5.45 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Asia-Pacific Car Insurance Market Analysis
The Asia-Pacific Car Insurance Market size in terms of gross written premiums value is expected to grow from USD 181.18 billion in 2024 to USD 236.23 billion by 2029, at a CAGR of 5.45% during the forecast period (2024-2029).
Revenue of the car insurance market in the Asia-Pacific has observed a continuous increase over the years, rising the car insurance policies sold by insurance providers with a rise in insurance premiums. China and India are among the countries in the region with the largest and increasing number of traffic accident casualties, making car insurance a necessary component. Taiwan, South Korea, New Zealand, and Australia are among the leading Asia-Pacific countries in non-life insurance penetration rate of above 3%, with countries of India and China still existing in the range of (1-2)%, making car insurance product adoption varying among the countries in the region.
With a declining trend in sales of cars before the pandemic, post-COVID-19 sales of cars in the Asia-Pacific observed an increase, and having car insurance policies compulsory in most of the Asia-Pacific countries leads to an increase in sales of car insurance policies in the region as well. Among the car sales volume, China, India, and Japan exist as countries leading the region, driving the insurance companies to invest in advertisements and product innovation to occupy a large share of car insurance buyers.
With the rise in digital and technological innovation, customer acquisition costs, as well as risk related to asymmetric information in the business, had observed a significant decline, resulting in insurance providers investing in other innovative segments. Telematics or usage-based insurance products have been launched, which use technology to track driver behavior for the calculation of the risk in insuring a particular driver and calculating insurance premiums based on that risk. These innovations are further expanding the car insurance market in the Asia-Pacific with an increased market value.
Asia-Pacific Car Insurance Market Trends
China Leading the Asia Pacific Market
China exists as the Asia-Pacific country with the largest car sales volume; passenger car sales in the country were at more than 23 Million last year, which was significantly higher in comparison to other Asia-Pacific countries of India, Japan, and South Korea. These rising car sales volumes are resulting in increasing car insurance premiums for the insurance providers with a rising business opportunity. Sedans and SUVs are among the car segments in China, with a sales volume share of more than 80% in passenger cars, leading to insurance providers especially focusing on these segments. Vehicle standards, Speeding, drunk driving, and road infrastructure quality are among the major causes of car accidents in China, and to insure themselves from these emerging risks, car owners are opting for car insurance where they can claim for losses in case of an accident. With its comprehensive motor reform last year, china observed a steep decline in its car insurance premium rates making the car insurance product more affordable among car owners.
Rising Digital Innovation in Car Insurance
The market size of the insurtech industry in the Asia-Pacific region is observing a continuous increase, with rising online car insurance products as well as providers. Online insurance products in the region are helping car owners to buy, renew, and claim their insurance online. Among the metropolitan cities in Asia-Pacific, there is an increasing number of users buying insurance products through online channels, with a significantly large share of the population using digital banking. In addition, car insurance providers are offering telematics or usage-based car insurance where telematics devices are attached to the GPS of the car, which tracks the driver's behavior. It is sent to the insurance provider, based on which the company decides the premium rates and minimizes the issue of asymmetric information and risk while issuing an insurance policy. These rising digital innovations are expected to expand the car insurance market over the coming period.
Asia-Pacific Car Insurance Industry Overview
The Asia-Pacific car insurance market is fragmented, with a large number of players existing in the region. Technology and product innovation by the insurance providers are leading to an offering of a wide range of insurance protection with the convenience of buying, renewing, and claiming car insurance through online channels. Some of the existing players in the Asia-Pacific car insurance market are Ping An Insurance, PICC, Tokio Marine, MS&AD Insurance Group, and Sompo Japan Nipponkoa Insurance.
Asia-Pacific Car Insurance Market Leaders
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Ping An Insurance
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PICC
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Tokio Marine
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MS&AD Insurance Group
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Sompo Japan Nipponkoa Insurance
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific Car Insurance Market News
- July 2022: Edelweiss General Insurance launched a comprehensive motor insurance product named 'Switch' which exists as a fully digital, mobile telematics-based motor policy that detects motion and automatically activates insurance when the vehicle is driven. This resulted in further expansion toward real-time driving scores and dynamically calculated premium-based car insurance services.
- July 2023: Lexasure Financial Group, which has its operations in reinsurance, insurance, and insurtech solutions in South and Southeast Asia, partnered with My Car Consultant Pte. Ltd., which exists as a Singapore-based company providing automotive solutions to offer its data-driven, self-insured car insurance in the region.
Asia-Pacific Car Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Sales of Cars in the Region
4.2.2 China and India Driving the Market with Higher Car Accident Events
4.3 Market Restraints
4.3.1 Lower Value of Non Life Insurance Penetration in the Region
4.3.2 Decline in Car Insurance Premium Rates with Government Regulations
4.4 Market Opportunities
4.4.1 Online Insurance Products Expanding the Car Insurance Sales
4.4.2 Demand for Customized Car Insurance Products by the Buyers
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Technological Innovations in Asia-Pacific Car Insurance Market
4.7 Insights on Regulatory Trends Shaping the Market
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Coverage
5.1.1 Third-Party Liability Coverage
5.1.2 Collision/Comprehensive/Other Optional Coverage
5.2 By Application
5.2.1 Personal Vehicles
5.2.2 Commercial Vehicles
5.3 By Distribution Channel
5.3.1 Direct Sales
5.3.2 Individual Agents
5.3.3 Brokers
5.3.4 Banks
5.3.5 Online
5.3.6 Other Distribution Channels
5.4 By Country
5.4.1 China
5.4.2 Japan
5.4.3 India
5.4.4 South Korea
5.4.5 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Ping An Insurance
6.2.2 PICC
6.2.3 Tokio Marine
6.2.4 MS&AD Insurance Group
6.2.5 Sompo Japan Nipponkoa Insurance
6.2.6 AIA Group Limited
6.2.7 IAG (Insurance Australia Group)
6.2.8 Allianz Asia Pacific
6.2.9 Zurich Insurance Group
6.2.10 Bajaj Allianz General Insurance
6.2.11 HDFC ERGO General Insurance
6.2.12 SBI General Insurance
6.2.13 National Insurance Company
6.2.14 TATA AIG General Insurance*
- *List Not Exhaustive
7. MARKET FUTURE TREND
8. DISCLAIMER AND ABOUT US
Asia-Pacific Car Insurance Industry Segmentation
Car insurance is a contract between the car owner and the insurance company where the car owner agrees to pay a fixed premium rate over some time for protection against financial loss in the event of any damage or loss to the car.
The study gives a brief description of the Asia Pacific car insurance market and includes details on car insurance premiums, investment by car insurance companies, and the launch of new car insurance products.
The Asia-Pacific car insurance market is segmented by coverage, by application, by distribution channel, and by country. By coverage, the market is segmented into third-party liability coverage and collision/comprehensive/other optional coverage. By application, the market is segmented into personal vehicles and commercial vehicles. By distribution channel, the market is segmented into individual agents, brokers, banks, online, and other distribution channels. By country, the market is segmented into china, japan, india, south korea, and the rest of asia-pacific.
The report also covers the market sizes and forecasts for the Asia-Pacific car insurance market in value (USD) for all the above segments.
| By Coverage | |
| Third-Party Liability Coverage | |
| Collision/Comprehensive/Other Optional Coverage |
| By Application | |
| Personal Vehicles | |
| Commercial Vehicles |
| By Distribution Channel | |
| Direct Sales | |
| Individual Agents | |
| Brokers | |
| Banks | |
| Online | |
| Other Distribution Channels |
| By Country | |
| China | |
| Japan | |
| India | |
| South Korea | |
| Rest of Asia-Pacific |
Asia-Pacific Car Insurance Market Research FAQs
How big is the Asia-Pacific Car Insurance Market?
The Asia-Pacific Car Insurance Market size is expected to reach USD 181.18 billion in 2024 and grow at a CAGR of 5.45% to reach USD 236.23 billion by 2029.
What is the current Asia-Pacific Car Insurance Market size?
In 2024, the Asia-Pacific Car Insurance Market size is expected to reach USD 181.18 billion.
Who are the key players in Asia-Pacific Car Insurance Market?
Ping An Insurance, PICC, Tokio Marine, MS&AD Insurance Group and Sompo Japan Nipponkoa Insurance are the major companies operating in the Asia-Pacific Car Insurance Market.
What years does this Asia-Pacific Car Insurance Market cover, and what was the market size in 2023?
In 2023, the Asia-Pacific Car Insurance Market size was estimated at USD 171.31 billion. The report covers the Asia-Pacific Car Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Car Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Car Insurance Industry Report
Statistics for the 2024 Asia-Pacific Car Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Car Insurance analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
