MOTORCYCLE INSURANCE MARKET

KEY FINDINGS

• The Insurance Regulatory and Development Authority of India (IRDAI) has approved the increase in premium of third-party motor insurance from FY20, the premium has increased 21% for premium motorcycles.
• Motorcycle Insurance costs in the US (21 % higher) and UK (14 % higher), India offers a 15 % discount on premiums for third-party insurance cover on electric vehicles.
• As the pandemic began to spread in March and mandated shutdowns followed suit, the widespread turn to remote work meant that vehicles were left parked for potentially weeks, if not months. As a result, many auto insurers in the US began to offer discounts and refunds on their customer in auto insurance premiums.
• Amazon has tied up with Acko General Insurance Ltd to offer two- and four-wheeler insurance policies in India through amazon pay.

INTRODUCTION

Insurance protects against the financial risks that are present at all stages of people’s lives and businesses. Insurers protect against loss of motorcycle and pay the policyholder or designee a benefit in the event of that loss.

Those who suffer the loss present a claim and request payment under the insurance coverage terms, which are outlined in a policy. Insurers typically cannot replace the item lost but can provide financial compensation to address the economic hardship caused by a loss.

Companies protect individuals and businesses from financial loss. Money, they receive as premiums is invested in the economy. Protection from financial loss provides a sense of security to individuals and businesses, which are freer to pursue business and personal opportunities with less worry about financial devastation.

MOTORCYCLE INSURANCE MARKET DYNAMICS

Companies are tending towards Automated Process with Artificial Intelligence (AI) as they will occupy center stage in insurance, driven by newer data channels, better data processing capabilities and advancements in AI algorithms.

While AI eliminates brokers and paperwork, its behavioural economics capabilities minimize fraud - leading to reduced time, effort and costs. Insurer's virtual assistant answers customer queries on policies and payments.

Claims are assessed and pay out property claims within seconds. Automated insurance agents interact with customers through a mobile app and other messenger platforms to help in the purchase of the right policies.

As countries relax lockdown measures and urban mobility resumes, consumption will eventually pick up, road congestion will return and so will the inevitable increased risks such as traffic tickets, accidents, vehicle thefts and fleet damages.

A growing number of insurers are tapping into markets in developing countries through microinsurance projects, which provide low-cost insurance to individuals generally not covered by traditional insurance or government programs. Microinsurance products tend to be much less costly than traditional products and thus extend protection to a much wider market.

Products vary in type and structure but are generally distinguished by high volumes, low cost and efficient administration. Policies may be offered along with a small loan, with premiums that are a small percentage of the loan amount.

With limited growth prospects in the insurance markets of developed countries, insurers see emerging economies as presenting significant potential for growth and profitability.

Premium growth in developing countries has been outpacing growth in industrialized countries. Swiss Re identifies emerging markets as countries in South and East Asia, Latin America and the Caribbean, Central and Eastern Europe, Africa, the Middle East (excluding Israel), Central Asia, and Turkey.

World insurance markets reported that premiums in emerging countries rose 6.6 percent in 2019, after adjusting for inflation, compared with 1.9 percent in 2018, and were mainly China-driven.

Growth in developing markets outpaced growth in advanced markets, where premiums increased 2.1 percent in 2019 after rising 3.5 percent in 2018. Emerging markets accounted for 18.5 percent of total global premium volume in 2019, compared with 21.3 percent in 2018.

MOTORCYCLE INSURANCE MARKET SIZE AND FORECAST

Global motorcycle insurance market is estimated at $XX Billion Premium in 2024 and growing at XX% CAGR till 2030.

MOTORCYCLE INSURANCE MARKETRECENT PRODUCT DEVELOPMENT AND INNOVATION

GEICO, known for its humorous advertisements with a cute gecko, expands its knowledge of vehicle insurance to offer comprehensive and specialized motorbike coverage. As a provider of the trustworthy and client-focused insurance, GEICO has established a solid reputation.

GEICO Motorcycle Insurance offers a number of features that are intended to protect riders and their cherished motorcycles. GEICO's motorcycle insurance offers a choice of protection alternatives, from liability coverage that complies with state regulations to more comprehensive plans that include collision and comprehensive coverage.

This is similar to what is offered by its auto insurance counterparts. Riders can select the insurance that best meets their unique demands and financial circumstances thanks to this flexibility. One distinguishing quality of GEICO's motorcycle insurance is its commitment to offering riders numerous chances to reduce premiums.

Discounts are a key component of GEICO's services, rewarding responsible drivers, people with multiple policies, and people who successfully complete safety training. For motorcycle riders on a tight budget, the emphasis on price without sacrificing coverage is a strong incentive.

Another noteworthy feature of GEICO's strategy is its dedication to accessibility and customer service. The company's user-friendly web platform makes it simple for customers to request prices, manage policies, and submit claims.

Riders may feel secure knowing that help is always available because to GEICO's round-the-clock customer service, which guarantees that they will never run into problems while driving.

Because motorcycle fans have such a wide range of preferences, GEICO's motorcycle insurance goes above and beyond standard coverage to include accessories and custom parts.

This displays the company's comprehension of the particular requirements of the biker community and its recognition that a bike is frequently more than just a means of transportation but also a source of passion and a way of life.

The well-known and reputable insurance company Erie Insurance brings its years of expertise and dedication to excellence to the field of motorcycle insurance.Erie provides motorcycle insurance options that are tailored to the particular requirements of riders and combine protection, affordability, and top-notch customer care.

With a wide range of coverage options offered by Erie Motorcycle Insurance, riders can customize their policies to meet their unique needs.

Erie provides a wide range of insurance options, from uncomplicated liability coverage, which is frequently required by law, to more comprehensive plans that include collision, comprehensive, and uninsured/underinsured motorist coverage.

Riders can create a policy that properly suits their unique needs and preferences because to this flexibility. Erie stands out for its dedication to providing clients with outstanding value. Transparency and clear pricing are highly valued by the organization, which makes sure that customers are aware of the prices of their coverage.

This commitment to transparency enables customers to choose their insurance with knowledge, promoting trust and confidence in Erie's products.

In addition to providing conventional coverage, Erie Motorcycle Insurance understands the need of protecting riders' investments. The corporation broadens its protection to include add-ons that are optional for extras, special parts, and even covering for canceled trips. 

MOTORCYCLE INSURANCE MARKETCOMPETITIVE LANDSCAPE

Since the cost of electric cars is considerably higher compared to that of other fuel variants, insurance is also expensive. The costliest component to be insured in an electric car is the battery, which accounts for 40-60 percent of the vehicle cost.

As and when battery prices drop, vehicle and insurance costs would also reduce. But insurers have their eye on the performance of batteries and their durability as the claims amount would be skewed towards this hefty cost if it needs to be replaced.

Allstate recently tested Virtual Assist using the collaboration software to create internal efficiencies before deciding to license the right to use it across its organization.

The technology, licensed by Allstate, helps a body shop employee, or potentially a vehicle owner, connect with another employee using real-time video and skill routing technology to gain capacity, reduce overall cycle time and improve the customer experience.

Farmers Insurance announced the launch of Crash Assist, a new feature included within their app that helps connect drivers with emergency services in the event of an accident and offers help in reporting a claim, if desired. The crash detection feature will be available via app update to all customers by March 2021.

MOTORCYCLE INSURANCE MARKETGEOGRAPHY OVERVIEW

North America 

The North American market, particularly the USA, will be one of the prime markets for  Motorcycle Insurance Market due to the nature of industrial automation in the region, high consumer spending compared to other regions, and the growth of various industries, mainly AI, along with constant technological advancements. The GDP of the USA is one of the largest in the world, and it is home to various industries such as Pharmaceuticals, Aerospace, and Technology. The average consumer spending in the region was $72K in 2023, and this is set to increase over the forecast period. Industries are focused on industrial automation and increasing efficiency in the region. This will be facilitated by the growth in IoT and AI across the board. Due to tensions in geopolitics, much manufacturing is set to shift towards the USA and Mexico, away from China. This shift will include industries such as semiconductors and automotive. 

Europe 

The European market, particularly Western Europe, is another prime market for  Motorcycle Insurance Market due to the strong economic conditions in the region, bolstered by robust systems that support sustained growth. This includes research and development of new technologies, constant innovation, and developments across various industries that promote regional growth. Investments are being made to develop and improve existing infrastructure, enabling various industries to thrive. In Western Europe, the margins for  Motorcycle Insurance Market are higher than in other parts of the world due to regional supply and demand dynamics. Average consumer spending in the region was lower than in the USA in 2023, but it is expected to increase over the forecast period. 

Eastern Europe is anticipated to experience a higher growth rate compared to Western Europe, as significant shifts in manufacturing and development are taking place in countries like Poland and Hungary. However, the Russia-Ukraine war is currently disrupting growth in this region, with the lack of an immediate resolution negatively impacting growth and creating instability in neighboring areas. Despite these challenges, technological hubs are emerging in Eastern Europe, driven by lower labor costs and a strong supply of technological capabilities compared to Western Europe. 

There is a significant boom in manufacturing within Europe, especially in the semiconductor industry, which is expected to influence other industries. Major improvements in the development of sectors such as renewable energy, industrial automation, automotive manufacturing, battery manufacturing and recycling, and AI are poised to promote the growth of  Motorcycle Insurance Market in the region. 

Asia 

Asia will continue to be the global manufacturing hub for Motorcycle Insurance Market  over the forecast period with China dominating the manufacturing. However, there will be a shift in manufacturing towards other Asian countries such as India and Vietnam. The technological developments will come from China, Japan, South Korea, and India for the region. There is a trend to improve the efficiency as well as the quality of goods and services to keep up with the standards that are present internationally as well as win the fight in terms of pricing in this region. The demand in this region will also be driven by infrastructural developments that will take place over the forecast period to improve the output for various industries in different countries.    

There will be higher growth in the Middle East as investments fall into place to improve their standing in various industries away from petroleum. Plans such as Saudi Arabia Vision 2030, Qatar Vision 2030, and Abu Dhabi 2030 will cause developments across multiple industries in the region. There is a focus on improving the manufacturing sector as well as the knowledge-based services to cater to the needs of the region and the rest of the world. Due to the shifting nature of fossil fuels, the region will be ready with multiple other revenue sources by the time comes, though fossil fuels are not going away any time soon. 

Africa 

Africa is expected to see the largest growth in Motorcycle Insurance Market over the forecast period, as the region prepares to advance across multiple fronts. This growth aligns with the surge of investments targeting key sectors such as agriculture, mining, financial services, manufacturing, logistics, automotive, and healthcare. These investments are poised to stimulate overall regional growth, creating ripple effects across other industries as consumer spending increases, access to products improves, and product offerings expand. This development is supported by both established companies and startups in the region, with assistance from various charitable organizations. Additionally, the presence of a young workforce will address various existing regional challenges. There has been an improvement in political stability, which has attracted and will continue to attract more foreign investments. Initiatives like the African Continental Free Trade Area (AfCFTA) are set to facilitate the easier movement of goods and services within the region, further enhancing the economic landscape. 

RoW 

Latin America and the Oceania region will showcase growth over the forecast period in Motorcycle Insurance Market . In Latin America, the focus in the forecast period will be to improve their manufacturing capabilities which is supported by foreign investments in the region. This will be across industries mainly automotive and medical devices. There will also be an increase in mining activities over the forecast period in this region. The area is ripe for industrial automation to enable improvements in manufacturing across different industries and efficiency improvements. This will lead to growth of other industries in the region. 

MOTORCYCLE INSURANCE MARKETMARGIN COMPARISON

INNOVATION INVESTMENTS BY REGION

USA– $210 billion is allocated to federal R&D with main focus on health research, clean energy, semiconductor manufacturing, sustainable textiles, clean energy, and advanced manufacturing. Investments by private players are mainly focused on technological development including 5G infrastructure and AI in the region. 

Europe– EIC is investing €1 billion to innovative companies in sectors like AI, biotechnology, and semiconductors. There is also a focus on developing the ecosystem in the continent as well as improving the infrastructure for developing industries such as electric vehicles and sustainable materials. Private players are targeting data centers, AI, battery plants, and high end technological R&D investments. 

Asia– There are investments to tackle a range of scientific and technological advancements in this region mainly coming in from China, India, South Korea, and Japan. This will include artificial intelligence, 5G, cloud computing, pharmaceutical, local manufacturing, and financial technologies. Many countries are aiming to be digital hubs including Saudi Arabia. 

Africa– Investments in the region are focused on improving the technological capabilities in the region along with socio-economic development and growth. Private participants of investments in this region is venture capital dominated who are targeting the various growth elements of the region as social stability improves. The major industries are fintech, easier lending, and manufacturing. 

Latin America– The focus in the region is for fintech, e-commerce, and mobility sectors. There are also investments in improving manufacturing in the region. Local investments is focused on improving the healthcare, and transportation infrastructure in the region. The region is attracting foreign investments to improve their ability to utilize the natural resources present in the region. 

Rest of the World– The investments in this region are focused on clean energy, green metals, and sustainable materials. Funds in Australia are focused on solar energy and battery technologies, along with high end futuristic areas such as quantum computing. The main countries of private investment in ROW will be Australia, Canada, and New Zealand.