Global insurance premium market grows in 2014
Published: September 21, 2015
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Industry News
The global auto insurance market will continue to rise after seeing 2.9 per cent growth since 2010 according to Finaccord, a research firm based in the United Kingdom. The market for auto insurance premiums grew to US$669.7 billion in 2014 according to the report that was issued on Monday.
Canada was among the 40 nations that makes up the bulk of the auto insurance market around the world and was studied in the research. The remaining nations outside of the big 40 account for just 7.5% of all global auto insurance premiums.
Finaccord is a market research, publishing and consulting company specializing in financial services, and in its new statement said that the figure in 2010 was $548.0 billion. However, the compound annual growth was actually more substantial, some 5.1% in fact, with personal auto insurance premiums still making up the bulk of the market.
US$460.1 billion was accounted for by personal auto insurance premiums, while $209.6 billion was from the commercial motor insurance sector.
From 2010 to 2014, “personal motor insurance premiums increased as a proportion of the total in 14 of the 40 countries investigated, with commercial motor insurance premiums in the ascendancy in 18 and with no change in the relative proportions in eight,” Finnacord reports.
While overall personal premiums cover the most of the market, this is not always the case as in some nations commercial premiums are responsible for more growth. Finnacord used Taiwan and the Philippines to point this out, with commercial insurance being more popular in the latter, 71.7 per cent.
“For Taiwan, this was because it has an exceptionally large number of motorcycles in addition to a relatively high level of car ownership, while in the Philippines there are 1.8 commercial vehicles for every passenger car,” the statement notes.
David Parry, Finaccord’s managing consultant, reports the rise in personal motor insurance premiums has been especially marked in China. “This is a consequence of the rapid increase in car sales to individual customers there with the result that a market in which commercial motor insurance premiums were formerly dominant is now one in which personal motor insurance premiums account for the majority,” Parry explains.
“At a respective US$213.9 billion, US$86.4 billion and US$46.0 billion in gross written premiums, the U.S., China and Japan were the world’s largest motor insurance markets in 2014”, Parry says. The markets that grew most rapidly between 2010 and 2014 were those of Argentina, India and Turkey with compound annual growth rates of 34.0%, 19.0% and 17.1%, respectively, he adds.