India Motor Insurance Market: Current Analysis and Forecast (2024-2032)
Emphasis on By Motor Insurance Type (Own Damage, Third Party); By Application (Commercial (Light Weight Four-Wheeler, Heavy Weight Four-Wheeler, Other Commercial Vehicle), Private Motor Vehicles), By Distribution Channels (Individual Agents, Brokers, Banks, Others); and Regions (North, East, West, and South)
India Motor Insurance Market Size & Forecast
The India Motor Insurance Market was valued at USD 12.15 billion in 2023 and is expected to grow at a strong CAGR of around 6.31% during the forecast period (2024-2032). Owing to the rising growth of the automotive sector in India.
India Motor Insurance Market Analysis
Motor insurance is a part of general insurance that is subjected to offering comprehensive protection coverage to the owners of vehicles of different categories in case of repair and theft. These insurance policies are offered by various public and private sector financial institutions and Banks regulated under the Insurance Regulatory Development Authority of India (IRDAI). The insurance policy covers the majority of the non-consumable items and their damage repair for the insured period of time.
The India Motor Insurance market was valued at USD 12.15 Billion in 2023 and is expected to grow at a strong CAGR of around 6.31% during the forecast period (2024-2032). One of the factors that has been majorly attributed to market growth is the increasing sales of automotive vehicles in the country. Considering the rise of the middle-class population as well as rising disposable income in the country, the automotive industry has benefitted from increasingly high sales in recent years.
This increasing sales has led to the demand for both first-party and third-party insurance, which is mandatory along with the Road tax payment for any automobile purchase. Additionally, with the various policy shifts, the demand for motor insurance will further propel in the coming years.
Additionally, motor insurance holds a sizeable share of the overall general and health insurance market in India. According to IRDAI, the total premium underwritten in India for motor insurance was INR 70,433.48 crore in 2021-22, which increased to INR 81,280.04 crore in 2022-23. The majority of the share for motor insurance is held by the public sector, with approximately 80% market representation.
India Motor Insurance Market Trends
This section discusses the key market trends that are influencing the various segments of the India Motor Insurance Market, as identified by our team of research experts.
Rising Trend of Electric Vehicles
The electric vehicle is a rising segment due to the growing focus of the customers towards sustainability. Electric cars offer various advantages over internal conventional fuel vehicles, such as lower operational costs over the long term, no tailpipe emission, etc. As electric vehicle sales in both the two-wheeler and four-wheeler categories have been witnessing higher sales, the demand for motor insurance is anticipated to rise in the coming years. As per the sales data for automobiles, the total sales of electric vehicles in 2023 accounted for 1.53 million, which is a 50% jump from 2022.
Additionally, the government initiatives offering free road tax in many of the states have further promoted the sales of electric vehicles in cars, two-wheelers, and e-rickshaw categories, which would contribute to a higher number of motor insurance markets in India.
Considering the rise of automotive in the electric vehicle category, the demand for motor insurance in the respective segment will grow further in the coming years, i.e., 2024-2032.
North India is Expected to Hold Major Market Share During Forecast Period
North India holds a sizeable market share in motor insurance. One of the factors attributing to the growth of the north India region is the high sales of automobiles in the previous years. The region comprises states such as Uttar Pradesh, New Delhi, Punjab, Haryana, Jammu & Kashmir, etc., which have sizeable populations as well as have witnessed incessant growth in vehicle ownership in recent years. According to the Society of India Automotive Manufacturers (SIAM), Uttar Pradesh, New Delhi, and Haryana had 10.04%, 5.94%, and 6.60% share in car sales in 2023 in India. A similar trend was seen while observing two-wheeler sales with 14.35%, 2.5%, and 2.89% sales in a similar period.
With the high sales of automobiles in the North India region, it is anticipated the demand for motor insurance is further anticipated to rise in the coming year, i.e., 2024-2032.
India Motor Insurance Industry Overview
The India Motor Insurance market is competitive and fragmented, with several regional and market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are ICICI Lombard General Insurance, Bajaj Allianz General Insurance, Tata AIG General Insurance, HDFC ERGO General Insurance, New India Assurance Co Ltd, United India Insurance Company Ltd, The Oriental Insurance Co. Ltd., Bharti AXA General Insurance, Reliance General Insurance, and IFFCO Tokio General Insurance.
India Motor Insurance Market News
In 2022, IRDAI permitted general insurance companies to introduce Pay As You Drive, Pay How You Drive, and floater policies for vehicles belonging to the same owners with two-wheelers and cars as add-ons in a motor insurance policy.
In 2023, ICICI Lombard launched its AI-based Claim Your Claim digital campaign. The campaign was aimed at tapping underpenetrated markets for general insurance in India.
India Motor Insurance Market Report Coverage
Report Attribute | Details |
Base year | 2023 |
Forecast period | 2024-2032 |
Growth momentum | Accelerate at a CAGR of 6.31% |
Market size 2023 | USD 12.15 billion |
Regional analysis | North, East, West, South |
Companies profiled | ICICI Lombard General Insurance, Bajaj Allianz General Insurance, Tata AIG General Insurance, HDFC ERGO General Insurance, New India Assurance Co Ltd, United India Insurance Company Ltd, The Oriental Insurance Co. Ltd., Bharti AXA General Insurance, Reliance General Insurance, and IFFCO Tokio General Insurance. |
Report Scope | Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Demand and Supply Side Analysis; Competitive Landscape; Company Profiling |
Segments Covered | By Motor Insurance Type, By Application, By Distribution Channel, By Region/Country |
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The India Motor Insurance market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs; hence, feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the India Motor Insurance Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the India Motor Insurance market were the three major steps undertaken to create and analyze the adoption of India Motor Insurance in major regions in India. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted with industry experts across the value chain of the India Motor Insurance market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the India Motor Insurance market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the India Motor Insurance market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as by motor insurance type, by application, and by distribution channel. Further regional/country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the India Motor Insurance market. Further, we conducted factor analysis using dependent and independent variables such as by motor insurance type, by application, and by distribution channel in the India Motor Insurance market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the India Motor Insurance market sector.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the India Motor Insurance market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors, including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques, i.e., the top-down/bottom-up approach, were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets in India. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the India Motor Insurance market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the India Motor Insurance market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs), including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the India Motor Insurance market. Data was split into several segments and sub-segments after studying various parameters and trends by motor insurance type, by application, and by distribution channel in the India Motor Insurance market.
The main objective of the India Motor Insurance Market Study
The current & future market trends of the India Motor Insurance market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the India Motor Insurance market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
- Segments in the study include areas by motor insurance type, by application, and by distribution channel.
- Define and analyze the regulatory framework for the India Motor Insurance
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the India Motor Insurance market for the major regions.
- Major regions studied in the report include North, East, West, and South.
- Company profiles of the India Motor Insurance market and the growth strategies adopted by the market players to sustain in the fast-growing market.
- Deep dive regional level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is the current market size and growth potential of the India Motor Insurance market?
Q2: What are the driving factors for the growth of the India Motor Insurance market?
Q3: Which segment has the largest share of the India Motor Insurance market by insurance type?
Q4: Which region will dominate the India Motor Insurance market?
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India Motor Insurance Market: Current Analysis and Forecast (2024-2032)
Emphasis on By Motor Insurance Type (Own Damage, Third Party); By Application (Commercial (Light Weight Four-Wheeler, Heavy Weight Four-Wheeler, Other Commercial Vehicle), Private Motor Vehicles), By Distribution Channels (Individual Agents, Brokers, Banks, Others); and Regions (North, East, West, and South)
June 28, 2024
