INDIA MOTOR INSURANCE MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

INDIA MOTOR INSURANCE MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

India Motor Insurance Market registered a CAGR of 11.36% over the period, 2012 – 2018.

Key Highlights

• Premiums from motor insurance accounted for approx 39.4% of the overall non-life insurance premiums in 2018, due to the rising demand from middle class families.

• Goods and services tax (gst) rate cut may boost insurance renewals of commercial vehicles. The reduction in gst rate for third-party motor insurance of commercial vehicles to 12% from 18% may improve renewal rates for the segment.

• The advent of a new year always comes with promise, and 2019 has the potential to be a very promising year for motor insurance in India. The world's fastest growing large economy with a burgeoning pool of customers, strong macro-economic factors and a robust financial ecosystem make the ideal backdrop to take the motor insurance market to the next level. The traditional Indian family has undergone a significant evolution over the last few years. The expectations of young customers from service providers are pushing companies across market to work smarter, deliver faster and engage better to not only to be preferred but to be loved by this set.

Key Market TrendsAutomobile Industry Driving Motor Insurance Market

In FY18, Motor insurance constituted 39.40% of the non-life insurance market in India. Increase in demand of motor insurance as a by-product of rapidly expanding auto industry. With strong growth in the automotive industry over the next decade will be a key driver of motor insurance. Automobiles sales in India has increased at 7.01% CAGR between FY13-18 to reach 24.97 million vehicles. Motor insurance accounted for 36.5% of non-life insurance premiums earned in India in Apr-Sep 2018. The Insurance Regulatory and Development Authority (IRDA) draft envisages a 10–80% rise in premium rates for the erstwhile loss-making third party motor insurance. The IRDA has indicated that it would disband the practice of annual fixing of premium for third party (TP) insurance for motor vehicles from 2020-21. This would pave the way for insurance companies to quote their own premiums, which may bring it down because of stiff competition.

Automotive telematics insurance industry

The telematics for vehicles started for tracking of stolen cars with the help of radio frequency communication using unlicensed frequency bands. Telematics are information and telecommunication products that combine computers and telecommunication services for transferring large amounts of data in vehicles in real-time. The Automotive industry is witnessing a phase of digital revolution. Over the next few years, automobiles will be completely transformed into communication objects. Therefore, the telematics market is expected to grow at a promising rate due to the rising consumer demands for staying connected 24*7 even while travelling. Russia and India have a joint venture to provide navigation services in India, which includes setting up the telematics terminals and portable navigation devices. The market share and number of policy has been seen a significant rise in India and will be continue to do so with inclusion of technologies.

Competitive Landscape

The Indian Motor Insurance Market is highly competitive with the presence of major Global players. The market presents opportunities for growth during the forecasted period which is expected to further drive market competition. With the presence of multiple players holding a significant share the market has observed a competitive environment.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

ICICI Lombard General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited
Tata AIG General Insurance Company Limited
HDFC ERGO General Insurance Company Limited
The New India Assurance Co. Ltd.
The Oriental Insurance Co. Ltd.
Bharti AXA General Insurance Company Ltd.
United India Insurance Co. Ltd.
Reliance General Insurance Company
Universal Sompo General Insurance Company Limited*

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