Some data on the car insurance market across the APAC region for you;
The motor insurance industry in the Asia-Pacific (APAC) region is projected to grow at a compound annual growth rate (CAGR) of 5.6% from an estimated $229.2 billion in 2024 to $301.7 billion in 2029, in terms of written premiums, according to GlobalData, a leading data and analytics company.
GlobalData’s Global Motor Insurance Market report reveals that China, Japan, Australia, South Korea, and India are the key markets in the APAC motor insurance industry, collectively accounting for 92% of the industry’s written premiums in the region in 2024. The industry is expected to grow by 5.6% in 2025 driven by increased sales of motor vehicles including electric vehicles (EVs), government subsidies and carbon dioxide reduction policies, regulatory changes, increasing motor insurance tariffs, and technological advancements.
Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “The APAC motor insurance market is witnessing a transformation, driven by the rise of EVs and regulatory changes. The region’s economic growth and demographic shifts are also playing a crucial role in shaping the market dynamics. For instance, the surge in vehicle sales post-COVID-19 has increased motor policy sales. Additionally, the increasing adoption of AI and digitalization in the insurance industry is enhancing service quality and operational efficiency, paving the way for future growth.”
Insurers are developing new policies to cover EVs, which come with a new set of risks, as EV sales increased significantly in 2023-24 and further growth is anticipated in 2025 and beyond. Regulatory bodies in Taiwan, Singapore, and China are formulating specific insurance regulations for EV-related products, ensuring that the market adapts to the evolving landscape. This trend is expected to continue, with government subsidies and carbon reduction policies further boosting EV sales and, consequently, motor insurance demand.
The strategic move by vehicle manufacturers to acquire insurance companies will also contribute to the growth. In May 2024, BYD, an electric carmaker, received regulatory approval for its new motor liability insurance offering after acquiring an insurance company in China. This trend highlights the increasing integration of vehicle manufacturers and insurance providers to offer enhanced experience for consumers and expand the market’s reach. The rise in new energy vehicles (NEVs) in China, accounting for a third of sales in 2023, underscores the potential for further growth in the motor insurance sector.
Sahoo adds: “The adoption of AI and digitalization is also reshaping the motor insurance landscape in APAC. Insurers are leveraging vast amounts of data to develop risk curves and pricing models for NEVs, enhancing their ability to offer competitive and tailored products. However, the market remains tightly regulated, with constraints on premium increases posing challenges for insurers. Despite these hurdles, the focus on underwriting rigor and moderate rate increases is expected to sustain profitability and drive growth in the coming years.”
Pay As You Drive (PAYD) motor policies are becoming increasingly popular in the APAC markets such as South Korea, Singapore, Malaysia, and India. As the major benefit of such policies is lower premium rates based on good driving behavior, distance traveled, and driving patterns, its wider adoption and popularity will offset premium hikes in the short term, impacting the industry’s performance.
Sahoo concludes: “The increasing adoption of EVs, pay-as-you-go policies, regulatory advancements, and technological innovations are set to redefine the market landscape. As countries like Indonesia plan to mandate motor third-party liability insurance and Malaysia aims for a significant EV market share by 2030, the motor insurance market in APAC is poised for substantial growth. Insurers must continue to adapt to these changes, leveraging technology and strategic partnerships to capitalize on emerging opportunities and ensure sustained success.”
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