Mubasher: The motor insurance market in the Asia-Pacific region is expected to grow to $257.8 billion in 2023 from $227.1 billion in 2019, in terms of written premiums, according to GlobalData.

According to the analytics company’s ‘Global Motor Insurance Market 2020’ insight report, the motor insurance market in Asia-Pacific is predicted to grow at a compound annual growth rate (CAGR) of 3.2% between 2019–2023, boosted by an upswing in demand for new vehicle sales from the rapidly growing middle-class population.

“Despite the current slowdown in growth due to COVID-19 pandemic, several countries are showing signs of recovery with the resumption in economic activity. China, which accounts for 50% of the region’s motor insurance market, registered 16.4% growth in new vehicle sales in July 2020 on a year-on-year basis, indicating market recovery,” said insurance analyst at GlobalData, Deblina Mitra.

The pace of product innovations is another key trend that can be observed in the motor insurance market; with new insurance products such as pay-as-you-go (PAYG) products are being provided by motor insurers to support sales at a time when car usage is low as a result of lockdown restrictions.

“Motor insurance industry is expected to see major changes over the next few years driven by technological developments. Further advancement in the motor industry in the area of connected cars and driver assistance services has the potential to disrupt the motor insurance industry in the region," concluded Mitra.