The Asia-Pacific motor insurance sector is expected to grow from US$145.46 billion in 2024 to US$238.66 billion by 2030, according to new research published on ResearchAndMarkets.com.
This forecast reflects an annual growth rate of 8.6%, driven by:
Digital technologies are playing a central role in reshaping the insurance value chain across Asia-Pacific.
The sector has witnessed growing adoption of digital tools and insurtech platforms to streamline underwriting, policy issuance, and claims processing.
Insurtech firms including India’s PolicyBazaar, Singapore’s Singlife, and China’s ZhongAn are using AI-based applications and automated systems to enhance customer interaction and reduce manual workloads.
Market analysts at Swiss Re estimate that digital distribution of insurance in Asia-Pacific will grow at over 20% annually through 2028, with the COVID-19 pandemic accelerating this trend.
Digital adoption has improved efficiencies, as insurers shift to cloud-based systems for handling customer data, detecting fraud, and tailoring products using big data analytics.
Telematics-powered motor insurance models, such as usage-based insurance (UBI), are gaining traction in the region.
These policies use data collected from vehicles or smartphones to determine insurance premiums based on driving behaviour.
Countries such as South Korea, Japan, and Australia have seen increasing use of pay-as-you-drive (PAYD) and pay-how-you-drive (PHYD) models.
Insurers such as Tokio Marine and Ping An are offering products that provide policyholders with feedback on driving patterns, while incentivising safer driving through lower premiums.
Research from Allied Market Research suggested that the global telematics insurance market could reach US$21 billion by 2027, with Asia-Pacific among the fastest-growing areas.
The transition to electric vehicles (EVs) across Asia-Pacific markets is altering the insurance landscape.
With China leading global EV sales and India and South Korea also expanding their electric fleets, insurers are developing products to meet new coverage demands. These include policies for battery damage, roadside charging incidents, and cyber vulnerabilities tied to connected vehicle systems.
In markets such as India and China, providers like Acko and CPIC have introduced tailored offerings for EV owners, often including services like battery replacement support and theft protection.
New EV ownership models – such as battery-swapping and vehicle leasing – are also prompting the need for more flexible insurance frameworks.
Sustainability and ESG integration are influencing underwriting strategies and customer engagement.
Insurers in the region are exploring green product offerings, including premium discounts for hybrid or electric vehicles and optional carbon offset features.
ESG-based underwriting is gaining adoption, with companies evaluating the environmental and social implications of their portfolios.
Deloitte reported that over half of insurers in the region are factoring ESG metrics into business decisions.
Regulatory authorities are also advancing transparency requirements, aiming to align the industry with broader sustainability goals.
China remains the dominant player in the region’s motor insurance market due to its large vehicle base and regulatory enforcement of mandatory coverage.
With over 330 million vehicles in circulation as of 2023, the Chinese market is supported by strong digital infrastructure and major carriers including Ping An, China Pacific Insurance, and PICC.
According to GlobalData, motor insurance premiums in Asia-Pacific are forecast to rise from US$229.2 billion in 2024 to nearly US$301.7 billion by 2029, marking a 5.6% CAGR.
China, Japan, Australia, South Korea, and India are projected to account for over 90% of these premiums.
