Latin America vehicle insurance market size was estimated to be USD 64.20 billion in 2017. The demand for vehicle insurance has been growing significantly, as a consequence of the increasing number of road casualties leading to physical damage to automobiles and bodily injuries.
The Colombian government sector has enforced the adoption of third-party insurance schemes that are beneficial in cases of bodily injury to a third person from motor vehicles. This scenario has acted as an influential factor in driving the demand for vehicle insurance products in Latin America. Other factors such as growth in tourism, self-dependence, poor transportation modes and increasing trade activities supplements the overall vehicle insurance industry. Despite vehicle insurance being an effective solution for safety from accidents, it is still considered as an unrequired expense in developing economies of the region, owing to the lack of consumer awareness.
The Latin America insurance environment is evolving in order to match up with the trends of the mature markets. Strong economic growth and regulatory reforms over the past decades have attracted a number of global insurers, reinsurers, and insurance brokers to the region. Mergers & acquisitions continue to help these global players build their positions in the region. Cross-regional expansion efforts by Latin American-based insurers have increased their size and market reach as well. These deals are enhancing insurers’ competencies through boosting and branding their product portfolio. The implementation of new Solvency II insurance capital management regulations in 2015 is expected to result in a shift towards insurance industry consolidation and increased sophistication in risk management.
The two-wheelers segment was valued at US$ 8.9 billion in 2017, captured a chunk of the Latin America vehicle insurance market and is projected to rise with the fastest CAGR over the years ahead. This growth is majorly attributed to growing middle-class annual incomes leading to higher expenditures over transportation convenience. Rising per capita income is another major factor driving the growth of the two-wheelers sector in the developing economies of Latin America.
The growth of the insurance market reflects the increase in the purchasing power of the Latin American colonies. The rise of new consumers has led to the development of products like microinsurance in Brazil. However, in order to succeed in the insurance market, it is necessary to dive deep into the social universe of the potential consumers and create high-quality solutions. The launch of Real Plan has attracted much of the Brazilian population into the consumer market. Insurance premium Brazil was above USD 29.0 billion in 2010, with reserves in the order of R$ USD 46.1 billion. In this period, the ratio of insurance and Brazilian Gross Domestic Product (GDP) reached 3.1% and the trend of this proportion to set to increase in the coming years
Several industry participants operate individually in the vehicle insurance industry such as Met Life, Porto Seguro S.A., Allianz and Liberty Mutual Insurance Company. In January 2016, Industry leaders such as Liberty Mutual Insurance and Subaru invented Right Track in-vehicle application. This app provides data based on real-time driving opinion to vehicle owners and offers tips for safe driving. App provides real-time driving assessment and coaching to drivers based on their data recorded by the app.
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 64.20 billion|
|Growth Rate||CAGR of 4.0 % during 2021-2028|
|Segment Covered||Type, Vehicle Type, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Allianz, Metropolitan Life Insurance Company, Porto Seguro S.A., Bradesco Seguros, Itau Unibanco, MAPFRE.|
Latin America Vehicle Insurance Market Scope
Key segments of the Latin America vehicle insurance market
Type Overview, 2015 – 2025 (USD Million)
- Comprehensive Insurance
- Third Party Insurance
Vehicle Type Overview, 2015 – 2025 (USD Million)
- Passenger Cars
- Commercial Vehicles
- Two Wheelers
Country Overview, 2015 – 2025 (USD Million)
- Rest of Latin America
The report has analyzed several players in the market, some of which include
- Metropolitan Life Insurance Company
- Porto Seguro S.A.
- Bradesco Seguros
- Itau Unibanco