Canada Motor Insurance Market Size (2024 - 2029)

The Canadian motor insurance market is experiencing growth, driven by the increasing number of vehicles on the road and the mandatory nature of third-party insurance. This market's expansion is further influenced by the shift towards a digital ecosystem, incorporating technologies such as the Internet of Things and Big Data analytics. These developments are reshaping the industry landscape, contributing to the overall increase in market size.

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Market Size of Canada Motor Insurance Industry

Canada Motor Insurance Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 4.40 %
Fastest Growing Market Asia-Pacific
Largest Market Europe
Market Concentration Medium

Major Players

Canada Motor Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

Canada Motor Insurance Market Analysis

The Canadian motor insurance market is expected to register a CAGR of more than 4.4% over the forecast period, 2022-2027.

  • Motor insurance protects the owner of the vehicle against damages to the vehicle and pays for any liabilities owed by the vehicle owner as per law. The owner of the vehicle is legally liable for any injury or damage to life or property caused by the use of the insured vehicle.
  • Motor insurance premiums grew from INR 15,343 crore in FY10 to INR 67,764.7 crore in FY21 at a compound annual growth rate (CAGR) of 14.5% as motor vehicles on the road have doubled over the last six years, and third-party insurance (TPI) has been made mandatory.
  • Motor insurance market dynamics are increasingly shifting toward a digital ecosystem based on mutual partnerships, Internet of Things (IoT), and Big Data analytics, reshaping the global auto insurance industry.

Canada Motor Insurance Industry Segmentation

  • Motor Insurance protects the owner of the vehicle against damages to the vehicle and pays for any liabilities owed by the vehicle owner as per law. The owner of the vehicle is legally liable for any injury or damage to life or property caused by the use of the insured vehicle.
  • The Canadian motor insurance market covers different segments of motor vehicle insurance by type like third-party only, third-party fire and theft insurance, and comprehensive insurance, with various applications in the motor vehicle insurance market like commercial and personal.
Policy
Third-party Motor Insurance
Third-party Fire and Theft Motor Insurance
Comprehensive Motor Insurance
End User
Personal Motor Insurance
Commercial Motor Insurance
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Canada Motor Insurance Market Size Summary

The Canadian motor insurance market is poised for significant growth, driven by the expanding auto industry and the increasing necessity for vehicle protection against damages and liabilities. As the number of motor vehicles on the road continues to rise, the demand for motor insurance is expected to grow, with the industry evolving towards a digital ecosystem that leverages mutual partnerships, IoT, and Big Data analytics. This transformation is reshaping the global auto insurance landscape, with telematics and usage-based insurance models gaining traction. These innovations offer potential cost savings on premiums and are becoming more popular among Canadian drivers, particularly those with lower annual mileage.

The market is characterized by a fragmented landscape with numerous players, including major companies like The Co-operators, Intact Insurance, and Aviva, among others. Despite challenges such as the COVID-19 pandemic's impact on the automotive sector, the industry is expected to recover and continue its upward trajectory. The property and casualty insurance sector in Canada is anticipated to maintain strong underwriting performance, supported by favorable market conditions and a decrease in auto claims frequency. However, the industry's profitability will remain sensitive to the frequency and severity of weather-related events, influencing the overall market dynamics.

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Canada Motor Insurance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

      1. 1.1.1 Insights into Disrupting Market Landscape of Motor Insurance

      2. 1.1.2 Insights into Technology Adoption in Motor Insurance Market

      3. 1.1.3 Insights into Growing Insurtech Share in the Motor Insurance Market

      4. 1.1.4 Insights into Growing Commercial Line of Motor Insurance

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Value Chain/Supply Chain Analysis

    5. 1.5 Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 PESTLE Analysis

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Policy

      1. 2.1.1 Third-party Motor Insurance

      2. 2.1.2 Third-party Fire and Theft Motor Insurance

      3. 2.1.3 Comprehensive Motor Insurance

    2. 2.2 End User

      1. 2.2.1 Personal Motor Insurance

      2. 2.2.2 Commercial Motor Insurance

Canada Motor Insurance Market Size FAQs

The Canada Motor Insurance Market is projected to register a CAGR of greater than 4.40% during the forecast period (2024-2029)

The Co-operators, The Personal Insurance, Intact Insurance, Desjardins and Belairdirect are the major companies operating in the Canada Motor Insurance Market.

Canada Motor Insurance Market Report Snapshots

Canada Motor Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)