PUBLISHER: The Business Research Company | PRODUCT CODE: 1662528
PUBLISHER: The Business Research Company | PRODUCT CODE: 1662528
An automobile insurance carrier is a company specializing in providing insurance coverage for vehicles. Its responsibilities encompass managing claims processes and facilitating payments, often utilizing insurance agents in its employ to arrange payments on behalf of the carrier.
The primary coverages within automobile insurance involve third-party liability coverage, alongside collision, comprehensive, and optional coverages. Third-party liability pertains to individuals not directly involved in the insurance policy. The vehicles covered include both light commercial vehicles (LCV) and heavy commercial vehicles (HCV), such as trucks and buses. Distribution of automobile insurance occurs through various channels, including insurance agents, direct response methods, banks, and other distribution channels.
The automobile insurance carriers market research report is one of a series of new reports from The Business Research Company that provides automobile insurance carriers market statistics, including automobile insurance carriers industry global market size, regional shares, competitors with automobile insurance carriers market share, detailed automobile insurance carriers market segments, market trends, and opportunities, and any further data you may need to thrive in the automobile insurance carriers industry. This automobile insurance carriers market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The automobile insurance carriers market size has grown rapidly in recent years. It will grow from $936.62 billion in 2024 to $1033.01 billion in 2025 at a compound annual growth rate (CAGR) of 10.3%. The growth in the historic period can be attributed to motorization and vehicle ownership growth, legal requirements and regulatory compliance, population and urbanization trends, rise in traffic accidents and collisions, economic growth and affordability.
The automobile insurance carriers market size is expected to see rapid growth in the next few years. It will grow to $1611.72 billion in 2029 at a compound annual growth rate (CAGR) of 11.8%. The growth in the forecast period can be attributed to continued vehicle ownership growth, evolution of legal and regulatory landscape, urban mobility challenges, changing consumer behavior and preferences, economic trends and affordability factors. Major trends in the forecast period include focus on cybersecurity, climate change impact and catastrophe modeling, customer-centric services, regulatory compliance and changes, integration of big data analytics.
The increasing number of accidents is anticipated to drive the growth of the automotive insurance carrier market in the future. A traffic or road accident is characterized as an unfortunate event that can lead to injury, damage, or even death unexpectedly. Automotive insurance companies provide financial protection to customers through their insurance policies, covering damages to vehicles resulting from accidents or incidents. Consequently, the rise in accident frequency is fueling the growth of the automotive insurance carrier market. For instance, in January 2024, a report from The Road Safety Authority, an Ireland-based government agency, indicated an increase in road fatalities across various user groups in Ireland compared to 2022. Specifically, there were increases among drivers (+13), passengers (+12), motorcyclists (+4), pedal cyclists (+2), pedestrians (+1), and other road users (+1). The average monthly death toll rose from 13 in 2022 to 16 in 2023. Therefore, the rising number of accidents is driving demand in the automotive insurance carriers market.
The automotive insurance carrier market is poised for growth, driven by the expansion of the automotive industry. This sector encompasses various activities related to motor vehicles, including design, development, manufacturing, marketing, and repair. Automotive insurance carriers play a pivotal role in providing financial protection to car owners and drivers in the event of accidents, alleviating the financial burden on individuals and businesses. Notably, in August 2023, the Board of Governors of the Federal Reserve System reported an increase in total vehicle production in the United States to 11.77 million units in July 2023, up from 10.91 million units in June 2023. This growth in automotive sales contributes to the rising demand for automotive insurance carriers.
A notable trend in the automotive insurance carriers market is the emphasis on product innovations. Companies within this market are actively adopting innovative strategies to enhance their market position. For instance, in January 2023, New India Assurance (NIA), a general insurance company based in India, introduced the Pay as You Drive (PAYD) policy. This innovative policy allows policyholders to save money through renewal premium discounts, provided their vehicles stay within specified kilometers. Furthermore, if a vehicle exceeds the predetermined limit, coverage will persist for the remaining policy duration. Product innovations such as PAYD are indicative of the dynamic landscape within the automotive insurance carriers market, reflecting a commitment to meeting evolving customer needs.
Prominent players in the automotive insurance carriers' market are strategically investing in technological advancements, particularly the development of mobile telematics-based auto insurance, to secure a competitive advantage. Mobile telematics-based auto insurance, commonly referred to as usage-based insurance (UBI), leverages mobile technology to monitor and assess a driver's behavior. In a notable example, Edelweiss General Insurance, an Indian non-life insurance provider, introduced SWITCH in July 2022. This on-demand policy enables customers to purchase and renew coverage as needed, with premiums calculated based on the insured's driving habits tracked through telematics. The policy not only determines premiums but also offers feedback to policyholders regarding their driving behavior.
In September 2024, Sentry Insurance, a US-based insurance firm, acquired The General for an undisclosed sum. This strategic move is designed to diversify Sentry's portfolio and broaden its customer base within the expanding segment of auto insurance specifically aimed at higher-risk drivers. The General is a US-based company that offers non-standard auto insurance solutions.
Major companies operating in the automobile insurance carriers market include State Farm Mutual Automobile Insurance Company, Government Employees Insurance Company, The Allstate Corporation, People's Insurance Company Of China, China Pacific Insurance Co., Universal Sompo General Insurance Company Limited, Ping An Insurance (Group) Company of China Ltd., Berkshire Hathaway Inc., Admiral Group plc, Tokio Marine Group, Allianz SE, Progressive Casualty Insurance Company, Zurich Insurance Group plc, Farmers Insurance Group, Liberty Mutual Holding Company Inc., RAC Motoring Services Ltd., Clements & Company and later Clements International, National Farmers' Union Mutual Insurance Society Limited (NFU Mutual), United Services Automobile Association, RSA Insurance Group Ltd., American International Group Inc., Assicurazioni Generali S.p.A., AXA Cooperative Insurance Company, Bajaj Allianz General Insurance Company Limited, Mitsui Sumitomo Insurance Co. Ltd., Reliance General Insurance Company Limited, The Hanover Insurance Group Inc., American Family Mutual Insurance Company, AmTrust North America Inc., Automobile Club MI Group, Auto-Owners Insurance Co., CSAA Insurance, Erie Insurance Co., Mapfre SA, Mercury General Corp., Nationwide Mutual Insurance Company, Security National Insurance Company, Sentry Insurance Group, Technology Insurance Company, Hartford Financial Services Group Inc., Travelers Companies Inc.
North America was the largest region in the automobile insurance carriers' market in 2024. The regions covered in the automobile insurance carriers market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the automobile insurance carriers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The automobile insurance carrier market includes revenues earned by entities by providing auto insurance online, in person, or by phone. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Automobile Insurance Carriers Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automobile insurance carriers market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automobile insurance carriers ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The automobile insurance carriers market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.