UAE Motor Insurance Market - By Coverage (Liability Coverage, Collision Coverage, Comprehensive Insurance, Others); By Distribution Channel (Insurance Agents/ Brokers, Direct Response, Banks, Others); By Vehicle Age (New Vehicles, Old Vehicles); By Applic

UAE Motor Insurance Market - By Coverage (Liability Coverage, Collision Coverage, Comprehensive Insurance, Others); By Distribution Channel (Insurance Agents/ Brokers, Direct Response, Banks, Others); By Vehicle Age (New Vehicles, Old Vehicles); By Application (Commercial Vehicle, Personal Vehicle), Trend Analysis, Competitive Landscape & Forecast, 2019–2029

UAE Motor Insurance Market Size Expands to Cross USD 1.7 Billion by 2029

UAE motor insurance market is flourishing due to a growing focus to mitigate the loss from increasing accident rates, legislative mandates for the purchase of auto insurance, and rising auto sales.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the UAE motor insurance market size at USD 1,499.98 million in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the UAE motor insurance market size to grow at a CAGR of 1.93% reaching a value of USD 1707.65 million by 2029. Major factors driving the growth of the UAE motor insurance market include the rising number of accidents, traffic incidents, and wrecks. Each of these elements has a significant role in setting vehicle insurance premiums. Due to their considerable discretionary income, people in large urban regions, for instance, are willing to pay a significant premium. People texting, talking on the phone, or engaging in other activities while driving is a problem in every city and may be a major factor in accidents. People buy auto insurance to prevent financial losses, which would increase demand during the forecast period. However, high premium costs and the integration of ADAS in automobiles are anticipated to limit the market growth.

UAE Motor Insurance Market – Overview

Cars, trucks, automobiles, motorcycles, and other vehicles are all covered by motor insurance. Motor insurance is popular among consumers because it provides financial protection in the event of vehicle damage as well as injuries to other drivers, passengers, or pedestrians (i.e., third-party cover). Therefore, adequate auto insurance is both a legal requirement and a necessity.

Impact of COVID-19 on UAE Motor Insurance Market

The COVID-19 pandemic adversely impacted UAE motor insurance market due to the lengthy nationwide lockdown that caused businesses to close. Because a significant portion of premiums goes towards the purchase of new cars, the shutdown and resulting near-halt in activity may exacerbate the situation. One of the most serious issues confronting the industry is a lack of new car purchases. To compensate, the coverage net of existing vehicles is typically increased, as the vast majority of them are no longer insured by the third and fourth years.

UAE Motor Insurance Market - By Application

On the basis of application, UAE automobile insurance market is split into commercial vehicles and personal vehicles segments. The UAE automobile insurance market is dominated by the personal cars segment. The demand for automobile insurance has surged due to the abundance of personal vehicles on UAE roads. Due to convenient financing and EMI alternatives, personal vehicles are becoming increasingly affordable, which is boosting demand for vehicle insurance. During the forecast period, it is expected that the fast-rising popularity of electric vehicles would have a substantial impact on the expansion of the UAE's motor insurance market.

Competitive Landscape

UAE motor insurance market is fiercely competitive. Major companies in the market include Bajaj Allianz, Allstate Insurance Company, Admiral, Berkshire Hathaway, Inc, CHINA PACIFIC INSURANCE CO., and GEICO. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in the UAE motor insurance market.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of UAE Motor Insurance Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in UAE Motor Insurance Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.