Motor vehicle insurance: Key market research findings
- Increased use of social media platforms for better market penetration
- Implementation of data analytics tools to reduce losses
- Key vendors—Allianz, Allstate Insurance, American International Group, Berkshire Hathaway Homestate, People’s Insurance Company of China, and Ping An Insurance
Technavio’s market research analysts predict the global motor vehicle insurance market to grow at a CAGR of almost 6% between 2016 and 2020. The use of social media platforms for better market penetration is the primary driver for the market. Several insurance companies are using social media platforms to gather customer feedback, resolve queries in real-time, provide product updates, and as a source for insight generation and fraud investigation. Internet-based strategies make it possible to overcome geographical boundaries that agents often face while serving clients. At present, the Americas account for more than 42% of the market share to dominate the global motor vehicle insurance market. Recent additions to vehicle safety equipment such as telematics is likely to fuel growth in the motor vehicle insurance market in the Americas by 2020.
The new market research report from Technavio presents a breakdown and analysis of the global motor vehicle insurance segments by premium type.
“The implementation of advanced analytic tools to reduce fraudulent claims is the latest trend in the market. Advanced tools such as big data analytics and geospatial analysis make it easier for insurance companies to minimise losses stemming from fraudulent claims. During the forecast period, top insurers are likely to form partnerships with analytics services providers in an attempt to speed up payment processes and improve customer satisfaction,” says Bharath Kanniappan, Lead Analyst, Industrial Automation, Technavio Research.
The personal insurance premiums segment accounted for almost 69% of the market space to dominate the global motor vehicle insurance market in 2015. Personal insurance is a policy purchased for a vehicle owned by an individual or a self-employed person for personal needs. As part of a personal insurance premium, most companies offer comprehensive protection to the insured vehicle and cover any loss or damage costs in addition to third-party liabilities.
The key vendors in the market include Allianz, Allstate Insurance, American International Group, Berkshire Hathaway Homestate, People’s Insurance Company of China, and Ping An Insurance. All motor vehicle insurance companies are expected to change their systems and processes so that they can develop and accurately price new products and insurance packages. For this, motor vehicle insurance companies need to introduce new coverage and performance or usage-based insurance products. Also, vendors are also required to test large volumes of user data to offer competitive pricing to their end-users.
A more detailed analysis is available in the Technavio report, Global Motor Vehicle Insurance Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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