In 2024, the leading ten motor insurers in the United Kingdom (UK) accounted for about ** percent of the total UK market. Admiral Group, which includes Admiral, Bell, Diamond, elephant.co.uk, Veygo, and Gladiator, had the highest market share at ** percent. This was followed by Aviva and the Direct Line Group at ** percent market share. After Germany and France, the UK is the third-biggest motor insurance market in Europe. Motor insurance in the UK In the United Kingdom, it is mandatory to have motor insurance to drive a vehicle on UK roads. Motor insurance covers the costs incurred if one is in an accident which causes injury to oneself, another person or animal, or causes damage to one’s own or another’s vehicle or property. In 2018, the vast majority of households in the UK had motor insurance. As of 2019, gross premiums written on motor insurance in the UK amounted to over ** billion euros. Motor insurance industry in Europe Home to one of the world’s leading insurance markets, Europe’s motor insurance industry is also quite extensive. As of 2019, total motor premiums written on the European insurance market amounted to a value of over *** billion euros. At that time, Germany had the highest value of total motor claims expenditure paid on the insurance market in Europe, with claims paid amounting to about ** billion euros.

The United Kingdom Motor Insurance Market is Segmented by Coverage Type (Third-Party, Comprehensive and More), Vehicle Type (Passenger Cars, and More ), End-Users (Individual, and More), Distribution Channel (Direct, and More), Purchase Mode (Online, and More), Technology (Traditional, Usage-Based, and More), Claims Type (Own Damage, Third-Party Liability), and Region. The Market Forecasts are Provided in Terms of Value (USD)

The size of the United Kingdom Motor Insurance Market was valued at USD 23.44 Million in 2023 and is projected to reach USD 31.18 Million by 2032, with an expected CAGR of 4.16% during the forecast period. Recent developments include: Feb 2022: For an initial payment of GBP 47.5 million, AXA UK&I purchased the renewal rights to Ageas UK's commercial operations. This acquisition reinforces AXA's growth strategy and dedication to its commercial business clients and broker alliances, particularly in the SME and Schemes market sectors. About 100 Ageas UK personnel will transfer to AXA Commercial as part of the arrangement to provide continued support and service delivery., Jan 2022: The cost of a comprehensive car insurance policy in Britain is expected to be volatile this year after rising 5% in the final quarter of 2021 as more drivers took to the roads to ease COVID-19 curbs. Motorists must pay GBP 539 (USD 734.06) on average for their comprehensive car insurance premiums.. Key drivers for this market are: Data Privacy Regulations, Business Interruption. Potential restraints include: Complexity and Lack of Understanding, Cost of Coverage. Notable trends are: High Volatility in Car Insurance Premiums During the Past Few Years.

Operators in this industry provide both private passenger and commercial insurance coverage. Motor vehicle insurance covers the insured party for any loss incurred through damage to property or person as the result of a car accident, including theft.

The United Kingdom Car Insurance Market is Segmented by Coverage Type (Third-Party Liability, Collision/Comprehensive, and More), Application (Personal, Commercial), Distribution Channel (Direct-To-Customer, Intermediated, and Embedded), Vehicle Powertrain (Internal-Combustion, Battery Electric, and More), and Region. The Market Forecasts are Provided in Terms of Value (USD).

As of 2024, the value of the motor insurance industry in the UK rested at roughly **** billion U.S. dollars. This value was forecasted to reach ***** billion by the year 2030.

The United Kingdom motor insurance market, valued at £23.44 billion in 2025, is projected to experience steady growth, exhibiting a Compound Annual Growth Rate (CAGR) of 4.16% from 2025 to 2033. This growth is driven by several factors. Rising vehicle ownership, particularly within younger demographics embracing personal mobility, fuels demand for insurance coverage. Furthermore, increasingly stringent government regulations regarding minimum insurance coverage and liability are bolstering market expansion. Technological advancements, such as telematics and usage-based insurance, are also shaping the market by offering customized pricing models and enhanced risk assessment capabilities. The market is segmented by product type (Third-Party, Third-Party Fire & Theft, Comprehensive) and distribution channel (Direct, Agency, Banks, Others). The competitive landscape includes major players like Aviva, Prudential, Zurich, AXA, and Allianz, among others, each vying for market share through innovative product offerings and strategic partnerships. However, the market also faces certain restraints. Fluctuating fuel prices and economic uncertainties can impact consumer spending on insurance premiums. Increased claims frequency and severity, potentially driven by factors like increased urbanization and road congestion, put pressure on insurers' profitability. Intense competition among established players and the emergence of new digital insurers further complicate the market dynamics. Despite these challenges, the long-term outlook remains positive, driven by continued vehicle sales and the adaptation of insurance providers to technological innovations and evolving customer needs. The focus will likely be on personalized pricing, risk mitigation through data analytics, and enhanced customer service experiences to maintain a competitive edge. Recent developments include: Feb 2022: For an initial payment of GBP 47.5 million, AXA UK&I purchased the renewal rights to Ageas UK's commercial operations. This acquisition reinforces AXA's growth strategy and dedication to its commercial business clients and broker alliances, particularly in the SME and Schemes market sectors. About 100 Ageas UK personnel will transfer to AXA Commercial as part of the arrangement to provide continued support and service delivery., Jan 2022: The cost of a comprehensive car insurance policy in Britain is expected to be volatile this year after rising 5% in the final quarter of 2021 as more drivers took to the roads to ease COVID-19 curbs. Motorists must pay GBP 539 (USD 734.06) on average for their comprehensive car insurance premiums.. Notable trends are: High Volatility in Car Insurance Premiums During the Past Few Years.

The UK car insurance market is booming, projected to reach £32.1 billion by 2033 with a 5.52% CAGR. This in-depth analysis reveals key drivers, trends, and challenges impacting major players like Aviva, Direct Line, and Admiral. Discover market size, regional breakdowns, and future growth projections. Key drivers for this market are: Increasing Adoption of Innovative Tracking Technologies. Potential restraints include: Rising Competition of Banks with Fintech and Financial Services. Notable trends are: Growth of Car Sales as Demand for Electric Car in United Kingdom.

Snapshot img

Motor Vehicle Insurance Market Size 2024-2028

The motor vehicle insurance market size is forecast to increase by USD 545.9 billion, at a CAGR of 10.44% between 2023 and 2028.

The market is experiencing significant shifts driven by increasing government regulations on mandatory insurance coverage in developing countries and the digitalization of the industry. These factors are shaping the market's strategic landscape, presenting both opportunities and challenges for insurance players. Government regulations in developing countries are pushing for mandatory insurance coverage, expanding the potential customer base for motor vehicle insurers. This trend is particularly noticeable in Asia Pacific and Latin America, where economic growth and urbanization are leading to increased car ownership. However, this regulatory environment also tightens the competitive landscape, as more players enter the market and compliance becomes a priority.
Simultaneously, the digitalization of the motor vehicle insurance industry is transforming the way insurers engage with customers and manage risk. Digital platforms enable real-time underwriting, claims processing, and customer service, enhancing the overall customer experience. However, this digital shift also brings challenges, such as data security concerns and the need for robust IT infrastructure. To capitalize on opportunities and navigate challenges effectively, insurers must stay abreast of regulatory changes and invest in digital capabilities.

What will be the Size of the Motor Vehicle Insurance Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
Request Free Sample

The market continues to evolve, shaped by dynamic market forces and advancements in technology. AI-powered claims processing streamlines underwriting and settlement negotiations, while digital insurance platforms offer convenience and personalized pricing. Data analytics and credit scoring inform risk assessment and customer segmentation, shaping insurance regulations and product offerings. Collision coverage and liability limits are subject to ongoing adjustments, influenced by factors such as driving record and insurable interest. Third-party administrators (TPAs) and legal counsel facilitate dispute resolution, ensuring regulatory compliance and comparative negligence assessments. Fraud detection and independent verification are essential components of claims processing, with advanced predictive modeling and accident reconstruction techniques aiding in claims investigation and policy administration.

How is this Motor Vehicle Insurance Industry segmented?

The motor vehicle insurance industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Personal
  Commercial


Distribution Channel

  Brokers
  Direct
  Banks
  Others


Vehicle Age

  New Vehicles
  Old Vehicles
  New Vehicles
  Old Vehicles


Coverage Type

  Liability Insurance
  Collision Insurance
  Comprehensive Insurance


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    Italy
    Spain
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

The personal segment is estimated to witness significant growth during the forecast period.

Motor vehicle insurance is a crucial financial protection for vehicle owners and drivers. The insurance policy, which is a compulsory requirement under the Motor Policy, offers coverage for both comprehensive and third-party liability packages. Personal insurance, an optional add-on cover, safeguards the owner or driver against accidental injuries. Insurance agents and brokers play a significant role in advising clients on coverage limits and policy options. Actuarial modeling and predictive analytics are used to assess risk and determine personalized pricing. Liability coverage, including property damage and bodily injury, is a key component of motor vehicle insurance. Fraud detection and independent verification are essential for dispute resolution and maintaining regulatory compliance.

Digital insurance platforms and ai-powered claims processing streamline the claims management process. Data analytics and customer segmentation help insurers tailor policies to individual needs. Usage-based insurance and mobile apps provide real-time data for risk assessment and customer retention. Insurance regulations mandate coverage for medical payments and accident reconstruction, as well as policy administration and claims processing. Policy cancellation, clai

The United Kingdom motor insurance market size reached approximately USD 23.54 Billion in 2024. The market is projected to grow at a CAGR of 4.10% between 2025 and 2034, reaching a value of around USD 35.18 Billion by 2034.

Household spending on motor insurance in the United Kingdom reached its peak in 2020 and has since fallen year-on-year. In 2023, the total household expenditure on insurance related to transport amounted to roughly *** billion British pounds, down from **** billion British pounds four years earlier. The United Kingdom is the second-largest motor insurance market in Europe, after Germany. Who leads the UK motor insurance industry? In 2024, Admiral Group was the leading motor insurance company in the United Kingdom, holding approximately ** percent of the market share. Other major insurers, including Aviva, Direct Line Group, and Hastings, also played a significant role in the industry. These companies have maintained their strong market positions through robust brand portfolios, competitive pricing strategies, and a focus on digital innovation. How have motor insurance prices evolved in the UK? In recent years, the consumer price index for the transport insurance industry in the United Kingdom has seen a significant increase, reflecting the growing financial strain on consumers and the rising cost of motor insurance. Rising claims costs, regulatory changes, and inflation have contributed to this upward trend. While there have been some fluctuations, the overall pattern has shown consistent growth.

United Kingdom Motor Insurance Market was valued at USD 23.89 Billion in 2024 and is expected to reach USD 31.65 Billion by 2030 with a CAGR of 4.8%.

UK Motor Insurance Market size was valued at USD 27.33 Billion in 2024 and is projected to reach USD 38.08 Billion by 2032, growing at a CAGR of 4.33% from 2026 to 2032.

UK Motor Insurance Market: Definition/ Overview

Motor insurance, also known as auto insurance, is a type of insurance that protects vehicle owners from financial losses caused by accidents, theft, or damage to their vehicles. It usually covers liability for injuries or damages caused to third parties in the event of an accident, allowing the policyholder to reimburse others for their losses. Motor insurance can cover the costs of vehicle repairs, medical expenses from injuries experienced in accidents, and legal liabilities arising from accidents involving the insured vehicle.

Snapshot img

Automotive Usage-Based Insurance Market Size 2024-2028

The automotive usage-based insurance market size is expected to grow by USD 67.51 billion at a CAGR of 25.1% from 2023 to 2028. Market growth is driven by flexible pricing models offering personalized coverage, government regulations mandating motor vehicle insurance, and advancements in telematics and data analytics. These factors enable innovative UBI programs and foster an environment of innovation and advancement. Trends indicate a shift towards smartphone-based UBI and mobility-as-a-service, revolutionizing traditional insurance models. However, challenges such as data security issues and fraudulent claims persist, requiring continuous advancements in telematics and state regulations to ensure the integrity of the automotive insurance ecosystem. As insurers and OEMs develop new solutions, the industry adapts to evolving consumer needs and embraces technological advancements.

What will be the Size of the Automotive Usage-Based Insurance Market During the Forecast Period?

For more highlights about this market report, Download Free Sample in a Minute

Automotive Usage-Based Insurance Market Segmentation

The automotive usage-based insurance market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD Billion' for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

Application Outlook 

  Embedded UBI
  App-based UBI





Pricing Scheme Outlook 

  PHYD
  PAYD
  MHYD

Region Outlook


  North America

    The U.S.
    Canada


  South America

    Chile
    Brazil
    Argentina 





  Europe

    U.K.
    Germany
    France
    Rest of Europe





  APAC

    China
    India





  Middle East & Africa

    Saudi Arabia
    South Africa
    Rest of the Middle East & Africa

The market is revolutionizing the insurance industry with its focus on telematic devices and connected cars. This innovative approach to insurance relies on on-road vehicles equipped with car telematics to track automotive usage and consumer driving behavior. Insurance companies leverage telematics data gathered from smartphones and black box devices to offer personalized insurance premiums based on factors like location tracking and fuel consumption. This shift from traditional insurance models to UBI and specialty insurance creates an automotive usage-based insurance ecosystem, enhancing data security and enabling vehicle recovery while addressing concerns such as fraudulent claims. With the integration of advanced technology and hybrid-based UBI, the market continues to expand, catering to both passenger cars and commercial vehicles in the mobility-as-a-service landscape.

By Application

The embedded UBI segment is estimated to witness significant growth during the forecast period. Embedded UBI solutions use external devices fitted into vehicles onboard diagnostics (OBD) to collect data about driving behavior. The data is transmitted to the insurer for optimum premium pricing. As the requirement of an external device posed a challenge for the adoption of embedded UBI and on-board diagnostics telematics, app-based UBI saw high adoption in the last 2-3 years.

Get a glance at the market contribution of various segments. Download PDF Sample

The embedded UBI was the largest segment and was valued at USD 10.10 billion in 2018. Additionally, governments around the world have established various committees to ensure safety during road transportation. Russia, Brazil, and many countries in Europe have mandated automotive telematics, such as emergency calls and stolen vehicle assistance, in vehicles. This trend will likely be followed by developing nations like India and China during the forecast period, thereby increasing the market share of embedded solutions. Additionally, it is expected that higher adoption of embedded solutions from luxury OEMs as they are ready to invest heavily in differentiating their products in the market. Therefore, the adoption of embedded UBI solutions in the automotive market will witness a continuous rise. This, in turn, is expected to drive automotive usage-based insurance market growth during the forecast period.

Key Regions

For more insights on the market share of various regions, Download PDF Sample now!

Europe is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Europe dominates the automotive market. Factors such as pricing play an important role in the adoption of automotive UBI in this region. The largest distribution channel in Europe is through price comparison websites. These websites allow users to compare and choose among the various offerings provided by insurers. Additionall

The size of the United Kingdom Car Insurance Market was valued at USD 20.74 Million in 2023 and is projected to reach USD 30.21 Million by 2032, with an expected CAGR of 5.52% during the forecast period. Recent developments include: October 2023: ARAG SE agreed to supply vehicle hire insurance for Hastings Direct. The vehicle hire insurance policy will be offered to over a million Hastings Direct motor insurance customers as an optional add-on to their primary motor policy., December 2022: Covea Insurance and BGL Insurance (BGLi) partnered and introduced a new car insurance brand in the United Kingdom called Nutshell. This new proposition will deliver significant benefits for vehicle users.. Key drivers for this market are: Increasing Adoption of Innovative Tracking Technologies. Potential restraints include: Rising Competition of Banks with Fintech and Financial Services. Notable trends are: Growth of Car Sales as Demand for Electric Car in United Kingdom.

The United Kingdom car insurance market, valued at approximately £20.74 billion in 2025, is projected to experience steady growth, with a Compound Annual Growth Rate (CAGR) of 5.52% from 2025 to 2033. This growth is driven by several factors. Increasing car ownership, particularly among younger drivers entering the market, fuels demand for insurance policies. Furthermore, stricter regulations regarding minimum insurance coverage and a growing awareness of the financial consequences of uninsured accidents are contributing to market expansion. The rise in technology, with advancements in telematics and usage-based insurance, offers personalized pricing and risk assessment, further stimulating market growth. The market is segmented by coverage type (third-party liability, collision/comprehensive, etc.), vehicle application (personal and commercial), and distribution channels (direct sales, agents, brokers, online, etc.). Competition is fierce, with major players like Admiral Group, Direct Line Group, Aviva, and others vying for market share through innovative products and competitive pricing strategies. Despite positive growth forecasts, the UK car insurance market faces challenges. Fluctuating fuel prices and economic uncertainty can impact consumer spending on insurance premiums. Increased regulatory scrutiny and potential changes in legislation could also influence market dynamics. Moreover, the increasing prevalence of fraudulent claims poses a significant risk to insurers, potentially impacting profitability and pricing strategies. The market's evolution is further shaped by shifting consumer preferences towards online purchasing and personalized insurance solutions. Companies are therefore investing heavily in digital platforms and data analytics to enhance customer experience and optimize risk management. The forecast suggests continued expansion, but insurers must adapt to changing market conditions and customer expectations to maintain competitiveness and profitability. Recent developments include: October 2023: ARAG SE agreed to supply vehicle hire insurance for Hastings Direct. The vehicle hire insurance policy will be offered to over a million Hastings Direct motor insurance customers as an optional add-on to their primary motor policy., December 2022: Covea Insurance and BGL Insurance (BGLi) partnered and introduced a new car insurance brand in the United Kingdom called Nutshell. This new proposition will deliver significant benefits for vehicle users.. Key drivers for this market are: Increasing Adoption of Innovative Tracking Technologies. Potential restraints include: Increasing Adoption of Innovative Tracking Technologies. Notable trends are: Growth of Car Sales as Demand for Electric Car in United Kingdom.

Aggregator websites made up more than half of all direct sales for motor insurance policies in the United Kingdom (UK) in 2017. Of the *** countries included in this statistic, there is a clear difference in consumers' use of comparison websites to find motor insurance. Consumers from the Netherlands were least likely to use aggregator sites with a market share of *** percent of direct sales made.

Discover the booming global life and non-life insurance market! This in-depth analysis reveals a CAGR exceeding 4%, driven by key trends and fueled by technological advancements. Explore market segmentation, regional growth, and top players like Ping An, UnitedHealth, and Allianz. Learn more about future projections and investment opportunities in this dynamic sector. Recent developments include: June 2022: UnitedHealthcare announced the plans of acquiring EMIS Group. The EMIS Group is a leading health technology company based in the UK. The deal is expected to be an all-cash deal of GBP 1.24 billion (USD 1.5 billion)., February 2022: Allianz SE one of the leading insurance company globally announced that is entering into a Share Purchase Agreement (SPA), to acquire 72% of European Reliance General Insurance Company SA ('European Reliance'). European Reliance is one of the leader in the Greek insurance sector with a network of 5,667 agents and 110 retail offices.. Notable trends are: Cyber Insurance is Driving the Market.

This industry underwrites or assumes the risk and assigns premiums for commercial automobile insurance policies. Commercial automobile insurance provides financial protection against physical damage to automobiles and bodily injuries resulting from traffic incidents. It can also protect against resulting liability.

Snapshot img

Insurance Analytics Market Size 2025-2029

The insurance analytics market size is valued to increase by USD 16.12 billion, at a CAGR of 16.7% from 2024 to 2029. Increasing government regulations on mandatory insurance coverage in developing countries will drive the insurance analytics market.

Market Insights

North America dominated the market and accounted for a 36% growth during the 2025-2029.
By Deployment - Cloud segment was valued at USD 4.41 billion in 2023
By Component - Tools segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 328.64 million 
Market Future Opportunities 2024: USD 16123.20 million
CAGR from 2024 to 2029 : 16.7%

Market Summary

The market is experiencing significant growth due to the increasing adoption of data-driven decision-making in the insurance industry and the expanding regulatory landscape. In developing countries, mandatory insurance coverage is becoming more prevalent, leading to an influx of data and the need for advanced analytics to manage risk and optimize operations. Furthermore, the integration of diverse data sources, including social media, IoT, and satellite imagery, is adding complexity to the analytics process. For instance, a global logistics company uses insurance analytics to optimize its supply chain by identifying potential risks and implementing preventative measures. By analyzing historical data on weather patterns, traffic, and other external factors, the company can proactively reroute shipments and minimize disruptions.
Additionally, compliance with regulations such as the European Union's General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA) requires insurers to invest in advanced analytics solutions to ensure data security and privacy. Despite these opportunities, challenges remain. The complexity of integrating and managing vast amounts of data from various sources can be a significant barrier to entry for smaller insurers. Additionally, the need for real-time analytics and the ability to make accurate predictions requires significant computational power and expertise. As the market continues to evolve, insurers that can effectively harness the power of data analytics will gain a competitive edge.

What will be the size of the Insurance Analytics Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

The market is a dynamic and ever-evolving landscape, driven by advancements in technology and the growing demand for data-driven insights. According to recent studies, the market is projected to grow by over 15% annually, underscoring its significance in the insurance industry. This growth can be attributed to the increasing adoption of advanced analytics techniques such as machine learning, artificial intelligence, and predictive modeling. One trend that is gaining traction is the use of analytics for solvency II compliance. With the implementation of this regulation, insurers are under pressure to ensure adequate capital and manage risk more effectively.
Analytics tools enable them to do just that, by providing real-time risk assessments, predictive modeling, and capital adequacy modeling. This not only helps insurers meet regulatory requirements but also enhances their risk management capabilities. Another area where analytics is making a significant impact is in customer churn prediction. By analyzing customer data, insurers can identify patterns and trends that indicate potential churn. This enables them to proactively engage with customers and offer personalized solutions, thereby reducing churn and improving customer satisfaction. In conclusion, the market is a critical driver of innovation and growth in the insurance industry.
Its ability to provide actionable insights and enable data-driven decision-making is transforming the way insurers operate, from risk management and compliance to product strategy and customer engagement.

Unpacking the Insurance Analytics Market Landscape

In the dynamic and competitive insurance industry, analytics plays a pivotal role in driving business success. Actuarial data science, with its advanced pricing optimization techniques, enables insurers to set premiums that align with risk profiles, resulting in a 15% increase in underwriting profitability. Risk assessment algorithms, fueled by data mining techniques and real-time risk assessment, improve loss reserving models by 20%, ensuring accurate claim payouts and enhancing customer trust. Data security protocols safeguard sensitive information, reducing the risk of fraud by 30%, as detected by fraud detection systems and claims processing automation. Insurance technology, including business intelligence tools and data visualization dashboards, facilitates data governance frameworks and policy lifecycle management, enab