Philippines Motor Insurance Market Size (2024 - 2029)

The Philippines Motor Insurance Market has experienced challenges due to economic uncertainties and industry disruptions, particularly exacerbated by the COVID-19 pandemic. Despite these challenges, the market has seen an increase in auto insurance penetration among both commercial and individual segments. The rising costs of vehicle maintenance and the growing digital connectivity of vehicles have made insurance more appealing. The entry of multiple players has enhanced customer bargaining power, leading to better insurance deals. Additionally, the increasing vehicle ownership and used vehicle sales are contributing to the market's expansion, driven by the growth of the middle class in the Philippines.

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Market Size of Philippines Motor Insurance Industry

Philippines Motor Insurance Market Size
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 9.00 %
Market Concentration Medium

Major Players

Philippines Motor Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

Philippines Motor Insurance Market Analysis

During the COVID-19 pandemic, the Philippines Motor Insurance Market faced economic uncertainty, lockdown restrictions, and due long-term downturn in the auto sector. It had a negative effect on motor insurance. Even before the onset of the pandemic, adverse economic developments, mature market conditions, and industry disruptions slowed down the premium growth of the motor insurance market.

There is an increase in penetration of auto insurance across both commercial/businesses and individual segments. The cost of maintenance of the vehicles has risen as vehicles become digital and connected, which makes insurance a viable alternative. The bargaining power of customers in the motor insurance market around the Philippines has increased, and the best insurance deals with apt risk cover are being taken into consideration because of the entry of multiple players into the market. The vehicle ownership rate and the used vehicle sales in the Philippines are growing at a substantial rate which would result in healthy growth in the Philippines Motor Insurance Market. Overall, insurance grew during the study period, with growth mainly driven by the expansion of the middle-class in the Philippines.

Philippines Motor Insurance Industry Segmentation

Motor Insurance is a type of insurance policy that covers the customers' vehicles from potential risks financially. The policyholder's car or two-wheeler is provided financial security against damages arising out of accidents and other threats. The Philippines motor insurance market is segmented by type (compulsory third-party liability insurance, comprehensive motor car insurance) and by distribution channel (agency, banks, direct, and others).

By Product Type
Third Party liability Insurance
Comprehnsive Motor Insurance
Others
By Distribution Channel
Agency
Banks
Direct
Others
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Philippines Motor Insurance Market Size Summary

The Philippines motor insurance market has experienced challenges due to economic uncertainties and disruptions in the auto sector, particularly during the COVID-19 pandemic. Despite these challenges, the market has shown resilience with an increase in auto insurance penetration across both commercial and individual segments. The rising cost of vehicle maintenance, driven by digital and connected vehicle technologies, has made insurance a necessary consideration. The market has seen increased customer bargaining power due to the entry of multiple players, leading to more competitive insurance deals. The growth in vehicle ownership and used vehicle sales, coupled with the expansion of the middle class, has been a significant driver of market growth. Government initiatives to boost the automotive sector and attract foreign direct investments have further supported this growth, with the automotive industry benefiting from factors such as labor availability, R&D efforts, and geographic advantages.

The market is characterized by a semi-consolidated structure, with major players like Malayan Insurance Company, Inc., Pioneer Insurance & Surety Corporation, and others dominating the landscape. The Insurance Commission's push for digitalization and innovation has led to the adoption of insurtech solutions, enhancing customer service and insurance penetration. Policies enabling the use of mobile applications and flexible payment mechanisms have facilitated this digital transformation. The introduction of new services, such as Malayan Insurance's Auto Master and PGAI's new payment channel, reflects the industry's adaptation to changing consumer needs. As vehicle sales continue to rise, the motor insurance market is poised for growth, driven by technological advancements and evolving consumer preferences.

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Philippines Motor Insurance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Insights into Latest Technologies Used in the Industry

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product Type

      1. 2.1.1 Third Party liability Insurance

      2. 2.1.2 Comprehnsive Motor Insurance

      3. 2.1.3 Others

    2. 2.2 By Distribution Channel

      1. 2.2.1 Agency

      2. 2.2.2 Banks

      3. 2.2.3 Direct

      4. 2.2.4 Others

Philippines Motor Insurance Market Size FAQs

The Philippines Motor Insurance Market is projected to register a CAGR of greater than 9% during the forecast period (2024-2029)

Malayan Insurance Company, Inc., Pioneer Insurance & Surety Corporation, Prudential Guarantee & Assurance, Inc., BPI/MS Insurance Corporation and Charter Ping An Insurance Corporation are the major companies operating in the Philippines Motor Insurance Market.

Philippines Motor Insurance Market Report Snapshots

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