November 28, 2018: Adroit Market Research published a study titled, “Latin America Vehicle Insurance Market Size 2017 By Type (Comprehensive Insurance, Third Party Insurance and Others), By Vehicle Type (Passenger Cars, Commercial Vehicles and Two Wheelers), By Country and Forecast 2018 to 2025”. The report covers the Latin America vehicle insurance market trends such as such as drivers, restraints and opportunities. The Porter’s Five Forces analysis has been used to gain a better understanding of the Latin America vehicle insurance market. The study includes the Latin America vehicle insurance market value for a period ranging between 2015 to 2025, where 2015 to 2017 shows the non-life insurance trends in the vehicle insurance market in Latin America with forecast between 2018 and 2025. Additionally, the report also provides market size and estimates for vehicle insurance market in Latin America for select key countries in this region.
The Latin America vehicle insurance market size is estimated to witness a 4.0% CAGR over the forecast period due to the rapid expansion of the global automobile industry. Owing to the rise in disposable income, the demand for vehicles has increased which has resulted in the growth of the automobile sector.
Players are actively developing the market via social media and ensuring the visibility of their insurance policies in the vehicle insurance market in Latin America. New insurance product launches and innovation in policies such as zero depreciation motor insurance cover are some of the key growth strategies set to catapult the market revenue. Furthermore, incorporation of advanced analytics tools to lower fraudulent claims and increasing market penetration through online support and third-parties are some of the key trends that are considered to drive the Vehicle Insurance Market in Latin America in coming years.
In 2017, third-party insurance accounted for more than 50% of the Latin America vehicle insurance market share. Third party insurance has been gaining tremendous popularity among consumers since it covers the person other than the parties involved in the contract and is, therefore, being mandated by the government of Latin American economies. For instance, Mexico’s tax incentives, promotion of retirement savings and a reasonable income tax structure, are the key contributors of industry growth. Mandates regarding the adoption of third-party auto liability coverage in Mexico is leading to the growth of the vehicle insurance market.
The passenger cars segment dominated the Latin America vehicle insurance market in 2017 and is expected to maintain its dominance in the upcoming years. Population explosion, increasing disposable income, and infrastructure enhancement have accelerated the production and sales of passenger cars in the said region. Increasing GDP and demand from export countries, launch of electric vehicles & low-cost car models, and rise in urbanization are some of the other major factors that have been supporting the overall sales of passenger cars in this region.
Other factors pertaining to the commercial vehicle (CV) sector such as the need for fuel-efficient vehicles, advent of global players such as Allianz, Metropolitan Life Insurance Company, PORTO SEGURO and lastly the execution of emission norms and other regulatory policies in the recent years, have enabled the region in becoming one of the noteworthy markets in the world.
Rapid urbanization, improving road infrastructure and regulatory policies will influence commercial vehicle buyers and original equipment manufacturers (OEMs), thereby, impacting vehicle insurance market in Latin America. Global players are presently in the process of redefining their brand position in the overall market. However, domestic companies improve R&D competence and optimize costs through outsourcing and modularization. Suppliers are focusing on improving the local capacity and introduce product innovation through pacing up the research & development activities, operational efficiency and aftermarket propositions.
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