The APAC motor insurance industry is expected to grow at a compound annual growth rate (CAGR) of 5.6%, rising from an estimated $229.2bn in 2024 to $301.7bn in 2029 in written premiums, GlobalData said.
The report highlights that China, Japan, Australia, South Korea, and India will remain the dominant markets, collectively representing 92% of the region’s written premiums in 2024.
The industry is projected to expand by 5.6% in 2025, fuelled by increasing motor vehicle sales—including EVs—along with government incentives, carbon reduction policies, regulatory shifts, rising motor insurance tariffs, and ongoing technological advancements.
"The APAC motor insurance market is witnessing a transformation, driven by the rise of EVs and regulatory changes. The region's economic growth and demographic shifts are also playing a crucial role in shaping the market dynamics. For instance, the surge in vehicle sales post-pandemic has increased motor policy sales. Additionally, the increasing adoption of AI and digitalisation in the insurance industry is enhancing service quality and operational efficiency, paving the way for future growth,” GlobalData senior insurance analyst Swarup Kumar Sahoo said in a statement.
As EV sales surged in 2023-24 and are expected to grow further in 2025 and beyond, insurers are introducing specialised policies to address the unique risks associated with EVs.
In response to this evolving landscape, regulatory authorities in Taiwan, Singapore, and China are implementing tailored insurance frameworks for EV-related products. This momentum is set to continue, driven by government incentives and carbon reduction initiatives, which are expected to fuel both EV adoption and the rising demand for motor insurance, the report said.
“The adoption of AI and digitalisation is also reshaping the motor insurance landscape in APAC. Insurers are leveraging vast amounts of data to develop risk curves and pricing models for NEVs, enhancing their ability to offer competitive and tailored products. However, the market remains tightly regulated, with constraints on premium increases posing challenges for insurers. Despite these hurdles, the focus on underwriting rigour and moderate rate increases is expected to sustain profitability and drive growth in the coming years,” Mr Sahoo said.