logo

Asia-Pacific Car Insurance Market Size (2024 - 2029)

The Asia-Pacific car insurance market is experiencing growth, driven by an increase in car sales and the compulsory nature of car insurance in many countries within the region. The market's expansion is influenced by the rising number of traffic accidents, particularly in China and India, which underscores the necessity of car insurance. Despite varying adoption rates across countries, technological advancements and innovations, such as telematics and usage-based insurance products, are enhancing market value and customer acquisition. The region's market size is further bolstered by insurance providers' investments in advertising and product innovation to capture a larger share of car insurance buyers.

Home Market Analysis Financial Services and Investment Intelligence Research Insurance Research Asia-Pacific Car Insurance Market Market Size

Market Size of Asia-Pacific Car Insurance Industry

Asia-Pacific Car Insurance Market Summary
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

Asia-Pacific Car Insurance Market 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 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
Need A Different Region Or Segment?
Customize Now

Asia-Pacific Car Insurance Market Size Summary

The Asia-Pacific car insurance market is experiencing a robust expansion, driven by increasing car sales and the necessity of insurance in countries with high traffic accident rates like China and India. The market is characterized by a diverse adoption of car insurance products, with countries such as Taiwan, South Korea, New Zealand, and Australia leading in non-life insurance penetration. The post-pandemic recovery in car sales has further propelled the demand for car insurance, as it is mandatory in most countries within the region. This has encouraged insurance providers to invest heavily in marketing and product innovation to capture a larger share of the market, particularly in China, India, and Japan, which are the frontrunners in car sales volume.

Technological advancements and digital innovations are significantly transforming the car insurance landscape in the Asia-Pacific region. The introduction of telematics and usage-based insurance products, which leverage technology to assess driver behavior and determine premiums, is enhancing the market's growth. The rise of online insurance products is facilitating easier access for car owners to purchase, renew, and claim their insurance, aligning with the increasing digital banking adoption in metropolitan areas. The market remains fragmented with numerous players, including Ping An Insurance, PICC, Tokio Marine, and others, offering a wide range of products. Recent developments, such as Edelweiss General Insurance's digital telematics-based motor policy and Lexasure Financial Group's partnership for data-driven insurance solutions, underscore the ongoing innovation and expansion within the market.

Explore More

Asia-Pacific Car Insurance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Sales of Cars in the Region

      2. 1.2.2 China and India Driving the Market with Higher Car Accident Events

    3. 1.3 Market Restraints

      1. 1.3.1 Lower Value of Non Life Insurance Penetration in the Region

      2. 1.3.2 Decline in Car Insurance Premium Rates with Government Regulations

    4. 1.4 Market Opportunities

      1. 1.4.1 Online Insurance Products Expanding the Car Insurance Sales

      2. 1.4.2 Demand for Customized Car Insurance Products by the Buyers

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Technological Innovations in Asia-Pacific Car Insurance Market

    7. 1.7 Insights on Regulatory Trends Shaping the Market

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Coverage

      1. 2.1.1 Third-Party Liability Coverage

      2. 2.1.2 Collision/Comprehensive/Other Optional Coverage

    2. 2.2 By Application

      1. 2.2.1 Personal Vehicles

      2. 2.2.2 Commercial Vehicles

    3. 2.3 By Distribution Channel

      1. 2.3.1 Direct Sales

      2. 2.3.2 Individual Agents

      3. 2.3.3 Brokers

      4. 2.3.4 Banks

      5. 2.3.5 Online

      6. 2.3.6 Other Distribution Channels

    4. 2.4 By Country

      1. 2.4.1 China

      2. 2.4.2 Japan

      3. 2.4.3 India

      4. 2.4.4 South Korea

      5. 2.4.5 Rest of Asia-Pacific

Asia-Pacific Car Insurance Market Size FAQs

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.

In 2024, the Asia-Pacific Car Insurance Market size is expected to reach USD 181.18 billion.

Asia-Pacific Car Insurance Market Report Snapshots

Asia Pacific Car Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)