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As per the report, ASEAN Automotive Insurance Marketpublished by Astute Analytica, the market for Auto Insurance in ASEAN countries is estimated to add an opportunity of US$ 4,774.1 Million over the forecast period 2021-2027.
The automotive insurance or motor insurance market in the ASEAN region is forecast to grow at a compounded rate of 5.6% during the forecast period. The research study analyzes the impact of some of the major market determinants such as a rise in awareness among vehicle end-users related to vehicle safety and benefits of automotive insurance, an increase of accidents, and a rise in the number of vehicle thefts, among others. Availability of multiple insurance policies and convenience to compare the policies from different vendors through an online marketplace has driven more users to opt for vehicle insurance covers. However, increasing prices of automotive insurance policies for a comprehensive cover and challenges in submitting a claim are expected to slow down customer transition. Cyber-attacks risk also restrict customers to leverage the full benefit of online service delivery models. All these factors under the influence of macro-economic indicators are expected to moderately boost the ASEAN automotive insurance market growth.
Fintech firms in Vietnam raised US$ 410 million, or 36% of the total global capital invested in the economies of South-East Asia between January and September in 2019. Nearly 70% of Vietnam's operational fintech companies are startups with huge foreign funding from developed countries, showing the strong potential for the growth of the fintech sector at the local level. Singapore kept its position as the Fintech regional investment leader. The country has attracted around 51% of Fintech-focused investment in South-East Asia, down slightly from around 53% in 2018.
Additionally, the government is persistently striving to encourage the manufacturing of Electric Vehicles (EVs) and high-tech auto parts through the promotion of incentive packages. For instance, in the year 2018, the Thailand government-approved projects related to the production of batteries and Hybrid Electric Vehicles (HEVs) by Honda Motor Co. and Nissan Motor Co. valued around US$ 0.87 billion (THB 28 billion).
Regionally, ASEAN automotive insurance market includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, and the Rest of ASEAN. Thailand is analyzed to hold dominating share of around 35% in the ASEAN automotive insurance market in the year 2020, which witnessed a slight decline over the forecast period. The dominating Thailand automotive insurance market is followed by Malaysia and Singapore markets. The Thailand automotive insurance industry is gaining huge traction, as it captures more than 50% of the share in the overall non-life insurance portfolio. Overall, the ASEAN insurance industry showcase that gross premiums increased in most countries in the life, non-life, or both segments. This growth may be a sign or a consequence of more favorable economic conditions, leading individuals to purchase insurance products. Growth (or decline) in motor vehicle insurance is often important in explaining the overall trends in the non-life sector and is linked to the economic performance of non-life insurers.
Some major companies considered in the ASEAN automotive insurance market report are Admiral Group Plc, AIG (American International Group, Inc.), Allianz, Allstate Insurance Company, AVIVA Ltd., Berkshire Hathaway Inc., China Pacific Insurance Co., Chubb Group, Geico, People's Insurance Company of China, Ping An Insurance (Group) Company of China, Ltd., State Farm Mutual Automobile Insurance and Tokio Marine Group. The companies are analyzed against parameters such as claims ratio, gross return premium, risk coverage based on different policies, and so on. In the ASEAN automotive insurance market, Tokio Marine Life holds the majority of the market share, while the remaining share is fragmentally distributed among the other five companies.
Segmentations covered in the research study include market size analysis based on revenue distribution in different categories. For instance, the off-road vehicles category under the vehicle application is forecast to grow at a CAGR of 6.7% during the forecast period 2021-2027, while the personal vehicle application holds the highest share of 92.3% in the year 2020. It is expected to see a marginal increase by the end of the year 2027.
Similarly, the new vehicles category under the vehicle ownership segment holds the highest market revenue share throughout the forecast period and is estimated to emerge as the leading segment in terms of CAGR for the period 2021-2027.
The report provides in-depth analysis for the ASEAN Automotive Insurance Market – Industry Dynamics, Market Size, and Opportunity Forecast to 2027, based on the following:
By Risk Coverage
By Vehicle Type
By Vehicle Application
By Vehicle Ownership
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