Canada Motor Insurance Market registered a CAGR of more than 4.4% over the period, 2022 - 2027.
- Motor Insurance protects the owner of the vehicle against damages to the vehicle and also 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 used of the insured vehicle.
- Motor insurance premium has grown from Rs. 15,343 crore in FY10 to Rs. 67,764.7 crore in FY21 at a compound annual growth rate (CAGR) of 14.5% as motor vehicles on road have doubled in the last six years and third party insurance (TPI) has been made mandatory.
- Motor insurance market dynamics is increasingly shifting towards digital ecosystem based on mutual partnerships, Internet of Things (IoT), and big data analytics which is reshaping the global auto insurance industry.
Key Market Trends
Increase in Number of Vehicles
- Increase in demand of motor insurance as a by-product of rapidly expanding auto industry. Industry revenue is expected to rise to US$40.1 billion by 2024. Additionally, the industry employs 125,000 people directly and another 400,000 in dealership networks and aftermarket services. The automotive sector contributes over $19 billion to Canada's GDP. Canada's entire automotive industry contributes over $19 billion to the country's GDP. Auto and parts manufacturing in Canada contributed around $16 billion. The sector grew 2.5% on average from 2015 to 2020. However, there was a 1.3% decline in 2020 because of the COVID-19 pandemic. The expected revenue for 2021 is $6.1 billion, with an annual growth of 14.8%.
Telematics Usage Based Insurance
- Insurance telematics is also known as usage-based insurance (UBI) or pay-as-you-drive - represents a shift in how insurance is administered and how premiums are calculated. Telematics has the potential to reduce your premium costs and generate significant benefits to society. The number of insurers offering telematics is expected to increase. Canadian insurance companies are learning from the experiences of their counterparts in the U.S. and Europe.
- In 2012, IBC conducted a survey in Ontario that found that the majority of those polled would be in favour of telematics. The option to choose telematics was most popular among people who drive less than 10,000 kilometres a year.
- The report covers major players in the motor insurance market in Canada. In terms of market share, the market is fragmented with the large number of players operating in the market. The major players in the market include The Co-operators, The Personal Insurance, Intact Insurance, Desjardins, Belairdirect, Aviva, TD Insurance, Economical Insurance, RSA Group, Sonnet.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support