Market Trends of India Motor Insurance Industry
Rise in Sales of Automobiles Indicates a Positive Growth of Motor Insurance Industry
The Indian automobile industry registered its highest-ever annual domestic passenger vehicle sales last year. Passenger vehicle sales were up 6 percent year-on-year, with Utility Vehicles (UVs) being the driving force. The total motor vehicle units sold in the country are 23 percent higher than the previous year. Major four-wheeler companies like Tata Motors, Kia India, and Toyota Kirloskar Motor recorded the highest growth in annual sales. The growth in sales numbers highlights the increasing demand for cars in India. Moreover, India overtook Japan as the world's third-largest light vehicle market last year, led by a strong surge in demand for personal mobility and last-mile deliveries post-pandemic. This increasing trend of automobile sales has risen in the India Motor Insurance Industry.
Indian Motor Insurance is Propelled by Increase in Digitalization
The online insurance segment in India has the most rapid growth in the Indian motor insurance market over the forecasted period. This is due to the ease of purchasing online insurance policies, the availability of discounts, offers, and plans from aggregators, and the increasing penetration of the internet, which has further contributed to the segment's growth. Additionally, the initiative the Insurance Regulatory And Development Authority took to allow insurers to carry out video-based customer service confirmations has also contributed to the expansion of the online insurance market.
Online marketplaces give Indian consumers a wide range of financial products so they can make informed decisions quickly without worrying about being scammed or misled. Insurance policies are especially appealing because online marketplaces give consumers all the necessary info, like mandatory deductibles and no-claim bonuses, claims settlement ratios, etc. Plus, most online marketplaces make it easy to pay for insurance policies with advanced digital payments. Consumers can pay for procedures with any digital payment, like debit cards, credit cards, digital wallets, or direct bank transfers. With cashback and payment plans, consumers can buy insurance policies on some of the best online marketplaces in India.
