Furthermore, the other groups in the top five by this measure were Progressive, Berkshire Hathaway Insurance, PICC and Allstate.
The ranking also shows that at 96 out of the top 200 groups, almost a half achieved annual growth of more than 10% in their GDPW for this line of business in 2023, and only 20 experienced a decline in activity. In many cases, the strong rise occurred because they increased rates to compensate for claims inflation. However, a few surged ahead at least in part because of their differentiated distribution strategies. Prominent examples of the latter are Digit Insurance, Haven Insurance, IDI, Incline P&C and Tawuniya, respectively based in India, Gibraltar (albeit serving the UK market), Israel, the US and Saudi Arabia.
While overall growth in worldwide GDPW for auto insurance in 2023 is estimated by Insuramore to have been slightly over 9%, the rate of progress was not uniform across countries. Notably, as a weighted average across the 13 groups based in China that featured in the global top 200, the annual increase was significantly lower at 5.3%. In a similar vein, for the nine France-based groups in the top 200, the aggregate rise in auto insurance GDPW was lower still at 4.1%. On the other hand, for 11 groups based in India and 60 based in US, the equivalent growth rates were 12.3% in both cases.
Looking ahead, it will be interesting to observe whether the global auto insurance market can continue to expand or whether growth rates will be pegged back by the intense competition that has traditionally dogged the sector. Moreover, among many sub-plots is the extent to which insurers owned by automotive manufacturers can gain market share. In 2023, US-based insurance underwriters belonging to Tesla achieved a combined auto insurance GDPW in excess of USD 100 million while VW group’s Volkswagen Autoversicherung, active in Germany and run as a joint venture with Allianz, had GDPW for this class of more than USD 300 million.
1422 views
