Auto Insurance market forecast to 2025 published by leading research firm
According to a new report published by Reports Monitor titled, Global Auto Insurance Market, Growth Opportunities, Innovations and Forecast, 2018-2025,” the global Auto Insurance market was valued at XX million in 2018, and is projected to reach at XX million by 2025, growing at a CAGR of XX% from 2018 to 2025.
Auto insurance is policy to insure cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, medical payments, and personal injury protection.
The auto insurance market is gaining worldwide popularity with increase in awareness among people. Increase in the automobile sales globally due to increase in the per capita income of the consumers majorly drives the market growth. The governments around the world have made it mandatory to buy insurance policy while buying a new vehicle and this move has acted as a stimulant in the increased sale in the auto insurance market. Innovative and lucrative product launches are expected to boost the market growth. The leading insurance players offer various add-on covers and it is expected to positively impact insurance sales. The increased incidences of road accidents due to rise in road traffic is among the major reasons for market growth. However, market fragmentation (availability of many plans offered by different companies) and rise in on-demand car services and the adoption of auto rider vehicles also reduces the need for auto insurance related to third party, which is a major restraint for the auto insurance market.
A trend that is impacting the market is the implementation of advanced analytics tools to reduce fraudulent claims. According to the National Insurance Crime Bureau (NICB), insurance fraud is the second biggest white-collar crime in the US after tax evasion. Advanced tools, such as big data analytics and geospatial analysis, are making it easier for insurance companies to reduce losses stemming from fraud claim.
The global auto insurance market is segmented on the basis of premium type, distribution channel, and geography. By premium type, it is diversified into personal insurance premium and commercial insurance premium. By distribution channel, it is classified into insurance broker/agency and online.
The global Auto Insurance market is studied across: North America, Europe, Asia Pacific and LMAEA (Latin America, Middle East and Africa). The America is emerged as the largest contributor for the insurance market during 2015, and it is expected to grow moderately during the forecast period. However, the APAC region holds immense potential for the growth of vehicle insurance providers during the same period. Many insurers are trying to create a profitable operating model through their ability to offer the right strategies and operations at the right time to their customers.
Allianz, USAA Property & Casualty, Amica Insurance, New Jersey Manufacturers Insurance Company, Erie Insurance Group, Auto Club Enterprises Insurance Group, Auto Club Insurance Association, Auto-Owners Insurance Group of Companies.
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