Guaranteed Auto Protection (GAP) Insurance Market Size- By Type, By Application, By Distribution Channel- Regional Outlook, Competitive Strategies and Segment Forecast to 2032

Description

Global GAP Insurance Market Overview

According to SPER Market Research, the Global GAP Insurance Market is estimated to reach USD 9.25 billion by 2032 with a CAGR of 10.13%.

The Guaranteed Auto Protection (GAP) insurance covers the difference between the car's actual cash value and the existing loan balance, protecting the borrower in the event that the vehicle is written off. The most popular types of vehicles for which GAP coverage is used are small cars, lorries, and big trucks. Owners and buyers are being compelled to purchase GAP insurance add-on plans due to a rising need for protection against borrowers' unplanned losses among self-financing organisations and car leasing companies. The market for GAP insurance is also expected to grow as theft claims for fleet owners and motor merchants become more serious. But the lack of knowledge about the benefits of guaranteed GAP insurance, a reduction in the number of new policies sold, and intense competition all limit the market's growth.

The adoption of comprehensive insurance along with the addition of GAP insurance, on the other hand, is projected to propel the expansion of the GAP insurance market in the future years. Gap insurance comes in if your automobile is totalled beyond repair and the depreciated value is less than what you still owe on the loan, in which case your claim pay out might not cover the difference. The Guaranteed Asset Protection (GAP) endorsement makes up the shortfall between the loan balance and the depreciated value of the vehicle. Drivers are often given the option of purchasing gap insurance. However, in other countries, gap insurance is typically offered by car dealerships at the time of purchase. The majority of auto insurance firms offer this coverage to consumers. If the car is sold or refinanced before the loan term is over, the buyer of GAP insurance is typically entitled to a refund of the unused portion of the payment.

Impact of COVID-19 on the Global GAP Insurance Market

Numerous global businesses have experienced significant commercial disruptions as a result of COVID-19. The sale of automobiles has decreased significantly as a result of severe lockout regulations in many countries, and the epidemic has affected the market for auto insurance. Additionally, a decline in new policy sales has forced a number of car dealers to temporarily halt their market activities. Additionally, many gap insurance companies declared that they will implement digitization in their operations to maintain effective client contact. During the current global health crisis, this issue has contributed to the market expansion for GAP insurance.

Scope of the Report:

Report Metric Details

Market size available for years 2019-2032

Base year considered 2021

Forecast period 2022-2032

Segments covered By Type, By Application, By Distribution Channel.

Regions covered Asia-Pacific, Europe, Middle East and Africa, North America, Latin America

Companies Covered Admiral Group PLC, Allianz, Allstate Insurance Company, American Family Insurance, Aviva, AXA, Berkshire Hathaway Inc., Chubb, Direct Gap, Kemper Corporation, Liberty Mutual Insurance Company, Majesco, Nationwide Mutual Insurance Company, Progressive Casualty Insurance Company, State Farm Mutual Automobile Insurance Company, The Travelers Idemnity Company, Zurich.

Global GAP Insurance Market Segmentation:

By Type: Based on the Type, Global GAP Insurance Market is segmented as; Return-to-Invoice GAP Insurance, Finance GAP Insurance, Vehicle Replacement GAP Insurance, Return-to-Value GAP Insurance, Others.

By Application: Based on the Application, Global GAP Insurance Market is segmented as; Passenger Vehicle, Commercial Vehicle.

By Distribution Channel: Based on the Distribution Channel, Global GAP Insurance Market is segmented as; Agents & Brokers, Direct Response, Others.

By Region: According to the forecast for the GAP insurance industry, Asia-Pacific would increase at the quickest rate. This is explained by the fact that the majority of vehicles used for business purposes in the Asia-Pacific region strictly require a commercial auto insurance, which also leads to the purchase of GAP insurance to prevent loss of value. As a result, this is a major driving factor for the market.

Product Code: BFSI2304

1. Introduction

1.1. Scope of the report
1.2. Market segment analysis

2. Research Methodology

2.1 Research data source
- 2.1.1 Secondary data
- 2.1.2 Primary data
- 2.1.3 SPER's internal database
- 2.1.4 Premium insight from KOL's
2.2 Market size estimation
- 2.2.1 Top-down and Bottom-up approach
2.3 Data triangulation

3. Executive Summary

4. Market Dynamics

4.1. Driver, Restraint, Opportunity and Challenges analysis
- 4.1.1 Drivers
- 4.1.2 Restraints
- 4.1.3 Opportunities
- 4.1.4 Challenges
4.2. COVID-19 Impacts of the Global GAP Insurance Market

5. Market variables and outlook

5.1. SWOT analysis
- 5.1.1 Strengths
- 5.1.2 Weaknesses
- 5.1.3 Opportunities
- 5.1.4 Threats
5.2. PESTEL analysis
- 5.2.1 Political landscape
- 5.2.2 Economic landscape
- 5.2.3 Social landscape
- 5.2.4 Technological landscape
- 5.2.5 Environmental landscape
- 5.2.6 Legal landscape
5.3. PORTER'S five forces analysis
- 5.3.1 Bargaining power of suppliers
- 5.3.2 Bargaining power of Buyers
- 5.3.3 Threat of Substitute
- 5.3.4 Threat of new entrant
- 5.3.5 Competitive rivalry
5.4. Heat map analysis

6. Competitive Landscape

6.1 Global GAP Insurance Manufacturing Base Distribution, Sales Area, Product Type
6.2 Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in Global GAP Insurance Market

7. Global GAP Insurance Market, By Type, 2019-2032 (USD Million)

7.1 Return-to-Invoice GAP Insurance
7.2 Finance GAP Insurance
7.3 Vehicle Replacement GAP Insurance
7.4 Return-to-Value GAP Insurance
7.5 Others

8. Global GAP Insurance Market, By Application, 2019-2032 (USD Million)

8.1 Passenger Vehicle
8.2 Commercial Vehicle

9. Global GAP Insurance Market, By Distribution Channel, 2019-2032 (USD Million)

9.1 Agents & Brokers,
9.2 Direct Response,
9.3 Others

10. Global GAP Insurance Market, By Region, 2019-2032 (USD Million)

10.1 Global GAP Insurance Market and Market Share by Region (2019-2025)
10.2 Global GAP Insurance Market and Market Share by Region (2026-2032)
10.3 Asia-Pacific
- 10.3.1 Australia
- 10.3.2 China
- 10.3.3 India
- 10.3.4 Japan
- 10.3.5 South Korea
- 10.3.6 Rest of Asia-Pacific
10.4 Europe
- 10.4.1 France
- 10.4.2 Germany
- 10.4.3 Italy
- 10.4.4 Spain
- 10.4.5 United Kingdom
- 10.4.6 Rest of Europe
10.5 Middle East and Africa
- 10.5.1 Kingdom of Saudi Arabia
- 10.5.2 United Arab Emirates
- 10.5.3 Rest of Middle East & Africa
10.6 North America
- 10.6.1 Canada
- 10.6.2 Mexico
- 10.6.3 United States
10.7 Latin America
- 10.7.1 Argentina
- 10.7.2 Brazil
10.73 Rest of Latin America

11. Company Profiles

11.1 Admiral Group PLC
- 11.1.1 Company details
- 11.1.2 Financial outlook
- 11.1.3 Product summary
- 11.1.4 Recent developments
11.2 Allianz
- 11.2.1 Company details
- 11.2.2 Financial outlook
- 11.2.3 Product summary
- 11.2.4 Recent developments
11.3 Allstate Insurance Company
- 11.3.1 Company details
- 11.3.2 Financial outlook
- 11.3.3 Product summary
- 11.3.4 Recent developments
11.4 American Family Insurance
- 11.4.1 Company details
- 11.4.2 Financial outlook
- 11.4.3 Product summary
- 11.4.4 Recent developments
11.5 Aviva
- 11.5.1 Company details
- 11.5.2 Financial outlook
- 11.5.3 Product summary
- 11.5.4 Recent developments
11.6 AXA
- 11.6.1 Company details
- 11.6.2 Financial outlook
- 11.6.3 Product summary
- 11.6.4 Recent developments
11.7 Berkshire Hathaway Inc.
- 11.7.1 Company details
- 11.7.2 Financial outlook
- 11.7.3 Product summary
- 11.7.4 Recent developments
11.8 Chubb
- 11.8.1 Company details
- 11.8.2 Financial outlook
- 11.8.3 Product summary
- 11.8.4 Recent developments
11.9 Direct Gap
- 11.9.1 Company details
- 11.9.2 Financial outlook
- 11.9.3 Product summary
- 11.9.4 Recent developments
11.10 Kemper Corporation
- 11.10.1 Company details
- 11.10.2 Financial outlook
- 11.10.3 Product summary
- 11.10.4 Recent developments
11.11 Liberty Mutual Insurance Company
- 11.11.1 Company details
- 11.11.2 Financial outlook
- 11.11.3 Product summary
- 11.11.4 Recent developments
11.12 Majesco
- 11.12.1 Company details
- 11.12.2 Financial outlook
- 11.12.3 Product summary
- 11.12.4 Recent developments
11.13 Nationwide Mutual Insurance Company
- 11.13.1 Company details
- 11.13.2 Financial outlook
- 11.13.3 Product summary
- 11.13.4 Recent developments
11.14 Progressive Casualty Insurance Company
- 11.14.1 Company details
- 11.14.2 Financial outlook
- 11.14.3 Product summary
- 11.14.4 Recent developments
11.15 State Farm Mutual Automobile Insurance Company
- 11.15.1 Company details
- 11.15.2 Financial outlook
- 11.15.3 Product summary
- 11.15.4 Recent developments
11.16 The Travelers Idemnity Company
- 11.16.1 Company details
- 11.16.2 Financial outlook
- 11.16.3 Product summary
- 11.16.4 Recent developments
11.17 Zurich
- 11.17.1 Company details
- 11.17.2 Financial outlook
- 11.17.3 Product summary
- 11.17.4 Recent developments