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Motor Vehicle Insurance - Europe

Europe

In Europe, the Motor Vehicle Insurance market market is projected to reach a market size (gross written premium) of €183.10bn in 2024.
The average spending per capita in this market is expected to amount to €216.90 in the same year.
Looking ahead, the gross written premium is projected to show an annual growth rate (CAGR 2024-2028) of 2.19%, resulting in a market volume of €199.70bn by 2028.
In global comparison, the United States is expected to generate the highest gross written premium of €1,241.0bn in 2024.
In Spain, the motor vehicle insurance market is seeing a rise in demand due to an increase in traffic congestion and road accidents.

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Analyst Opinion

The Motor Vehicle Insurance market in Europe is experiencing a shift in customer preferences towards more comprehensive coverage options and digital services.

Customer preferences: Customers in Europe are increasingly seeking motor vehicle insurance policies that offer not only basic coverage for accidents and theft, but also additional benefits such as roadside assistance, coverage for natural disasters, and personalized add-ons. This trend is being driven by the desire for greater peace of mind and convenience in the event of unforeseen circumstances on the road.

Trends in the market: In countries like Germany and the United Kingdom, there is a noticeable trend towards usage-based insurance policies, where premiums are determined based on individual driving behavior. This innovative approach not only appeals to customers looking for more personalized pricing, but also incentivizes safer driving habits. Additionally, the rise of electric vehicles in countries like Norway and the Netherlands is leading to a growing demand for insurance products tailored specifically to the unique needs of electric car owners.

Local special circumstances: In regions like Southern Europe, where the prevalence of motor vehicle accidents is relatively higher compared to other parts of Europe, there is a growing emphasis on insurance policies that offer quick claims processing and comprehensive coverage. This is driving insurance companies in countries like Italy and Spain to develop specialized products that address the specific risks faced by drivers in these areas.

Underlying macroeconomic factors: The overall economic stability and regulatory environment in Europe play a significant role in shaping the motor vehicle insurance market. Countries with robust economies and strict regulatory frameworks, such as Switzerland and Sweden, tend to have a more competitive insurance market with a wide range of options for customers. On the other hand, regions facing economic uncertainty, like Eastern Europe, may see a higher demand for budget-friendly insurance solutions that still provide adequate coverage.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.