Motor Vehicle Liability Insurance Market to Reach $667.75 Billion By 2030

According to a recent report published by Allied Market Research, titled, “Motor Vehicle Liability Insurance Market By Mode, Distribution Channel, Vehicle Age, and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030”, the global motor vehicle liability insurance market size was valued at $297.00 billion in 2020, and is projected to reach $667.75 billion by 2030, growing at a CAGR of 7.8% from 2021 to 2030.

Motor vehicle liability insurance is a type of non-life insurance normally covers physical damage to the third-party person and their vehicles. In addition, it comes in two forms: bodily injury liability coverage and property damage liability coverage. Drivers in most countries generally must have both types of coverage. Moreover, it helps pay to repair another person’s property or for their medical bills if the policyholder is found responsible for causing the damage or injuries.

Furthermore, the key factor that drives the market includes low cost of motor vehicle liability insurance and legal liability provided to the insured party positively impacts the growth of the market. In addition, rise in stringent government regulation regarding liability insurance boost the growth of the market across the globe. However, factors such as rise in number of false claims and rise in social inflations are limiting the growth of the motor vehicle liability insurance market. On the contrary, advancements of technologies in big data, advanced analytics and artificial intelligence is expected to offer remunerative opportunities for the expansion of the market during the forecast period.

Based on application, the global motor vehicle liability insurance market share is divided into personal and commercial. The personal segment is contributing major share in 2020 owing to rising economic conditions and growing number of on automobiles companies in developing countries such as India, China and others. However, the commercial segment is expected to witness growth at a significant pace during the upcoming years owing to rise in favorable rules and regulations made by governments across the globe to mandatorily buy insurance policy while purchasing a new commercial vehicle has also boosted the motor vehicle liability insurance market growth.

Region wise, the motor vehicle liability insurance market share was dominated by North America in 2020, and is expected to retain its position during the forecast period. This is attributed to number of factors such as penetration of automobiles and improvement in economy. In addition, presence of growing number of cloud motor vehicle liability insurance solution vendors across the region is expected to provide lucrative opportunities for the market. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to wide presence of reinsurance providers, which are turning toward digital motor vehicle liability insurance solutions to efficiently manage their policy renewal processes in the China and India.

The motor vehicle liability insurance market has witnessed significant growth in past few years; however, due to the outbreak of the COVID-19 pandemic, the market is projected to witness a sudden downfall in 2020. This is attributed to implementation of lockdown by governments in majority of the countries and the shutdown of travel across the world to prevent the transmission of virus. Therefore, to overcome these several challenges, insurers have established new developments in existing policies such as pay-as-you-drive, usage-based insurance, or telematics insurance as well as adopted technologies to enhance the claim processes and provide better user experience, despite the global health crisis.

Key Findings of the Study

• By application, the personal insurance segment accounted for the largest motor vehicle liability insurance market share in 2020.
• Region wise, North America generated highest revenue in 2020.
• Depending on vehicle age, the new vehicle segment generated the highest revenue in 2020.

Key players operating in the global motor vehicle liability insurance industry include Allstate, AXA XL, Chubb Limited, Great American, Hiscox Ltd., Nationwide, Progressive Commercial, State Farm, The Hartford, and The Travelers Indemnity Company. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global motor vehicle liability insurance market analysis.