Canada Motor Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Canadian Motor Insurance Market can be Segmented by Users (Personal Motor Insurance and Commercial Motor Insurance) and Policy Type (Third-party Motor Insurance, Third-party Fire and Theft Motor Insurance, and Comprehensive Motor Insurance).

Market Snapshot

Canada Motor Insurance Market Size
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Europe
CAGR: >4.4 %

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Market Overview

The Canadian motor insurance market is expected to register a CAGR of more than 4.4% over the forecast period, 2022–2027.

  • Motor insurance protects the owner of the vehicle against damages to the vehicle and pays for any liabilities owed by the vehicle owner as per law. The owner of the vehicle is legally liable for any injury or damage to life or property caused by the use of the insured vehicle.
  • Motor insurance premiums grew from INR 15,343 crore in FY10 to INR 67,764.7 crore in FY21 at a compound annual growth rate (CAGR) of 14.5% as motor vehicles on the road have doubled over the last six years, and third-party insurance (TPI) has been made mandatory.
  • Motor insurance market dynamics are increasingly shifting toward a digital ecosystem based on mutual partnerships, Internet of Things (IoT), and Big Data analytics, reshaping the global auto insurance industry.

Scope of the Report

  • Motor Insurance protects the owner of the vehicle against damages to the vehicle and pays for any liabilities owed by the vehicle owner as per law. The owner of the vehicle is legally liable for any injury or damage to life or property caused by the use of the insured vehicle.
  • The Canadian motor insurance market covers different segments of motor vehicle insurance by type like third-party only, third-party fire and theft insurance, and comprehensive insurance, with various applications in the motor vehicle insurance market like commercial and personal.
Policy
Third-party Motor Insurance
Third-party Fire and Theft Motor Insurance
Comprehensive Motor Insurance
End User
Personal Motor Insurance
Commercial Motor Insurance

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Key Market Trends

Increase in Number of Vehicles

  • There is an increase in demand for motor insurance as a by-product of the rapidly expanding auto industry. Industry revenue is expected to rise to USD 40.1 billion by 2024. Additionally, the industry employs 125,000 people directly and another 400,000 in dealership networks and aftermarket services. The automotive sector contributes over USD 19 billion to Canada’s GDP. Canada’s entire automotive industry contributes over USD 19 billion to the country’s GDP. Auto and parts manufacturing in Canada contributed around USD 16 billion. The sector grew 2.5% on average from 2015 to 2020. However, there was a 1.3% decline in 2020 because of the COVID-19 pandemic. The expected revenue for 2021 was USD 6.1 billion, with an annual growth of 14.8%.
Canada Motor Insurance Market Share

Telematics Usage-based Insurance

  • Insurance telematics, also known as usage-based insurance (UBI) or pay-as-you-drive, represents a shift in how insurance is administered and how premiums are calculated. Telematics has the potential to reduce one’s premium costs and generate significant benefits for society.​ The number of insurers offering telematics is expected to increase. Canadian insurance companies are learning from the experiences of their counterparts in the United States and Europe.
  • In 2012, IBC conducted a survey in Ontario that found that the majority of those polled would be in favor of telematics. The option to choose telematics was most popular among people who drive less than 10,000 kilometers a year.
Canada Motor Insurance Market Value

Competitive Landscape

  • The report covers major players in the motor insurance market in Canada. In terms of market share, the market is fragmented, with a large number of players operating in the market. The major players in the market include The Co-operators, The Personal Insurance, Intact Insurance, Desjardins, Belairdirect, Aviva, TD Insurance, Economical Insurance, RSA Group, and Sonnet.

Recent Developments

  • November 2021: Allstate was raising its auto insurance rates and focusing on increasing returns in that part of its business in response to a decline in net income in the third quarter of 2021.
  • December 2021: Canada’s property and casualty (P&C) insurance sector plans to continue to experience robust underwriting performance until 2022, driven by lower auto claims frequency and a favorable pricing market, global credit rating agency DBRS Morningstar predicts. Profitability, however, will also be dictated by the frequency and severity of weather-related events.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

      1. 4.1.1 Insights into Disrupting Market Landscape of Motor Insurance

      2. 4.1.2 Insights into Technology Adoption in Motor Insurance Market

      3. 4.1.3 Insights into Growing Insurtech Share in the Motor Insurance Market

      4. 4.1.4 Insights into Growing Commercial Line of Motor Insurance

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain/Supply Chain Analysis

    5. 4.5 Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 PESTLE Analysis

    7. 4.7 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 Policy

      1. 5.1.1 Third-party Motor Insurance

      2. 5.1.2 Third-party Fire and Theft Motor Insurance

      3. 5.1.3 Comprehensive Motor Insurance

    2. 5.2 End User

      1. 5.2.1 Personal Motor Insurance

      2. 5.2.2 Commercial Motor Insurance

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Mergers & Acquisitions

    3. 6.3 Company Profiles

      1. 6.3.1 The Co-operators

      2. 6.3.2 The Personal Insurance

      3. 6.3.3 Intact Insurance

      4. 6.3.4 Desjardins

      5. 6.3.5 Belairdirect

      6. 6.3.6 Aviva

      7. 6.3.7 TD Insurance

      8. 6.3.8 Economical Insurance

      9. 6.3.9 RSA Group

      10. 6.3.10 Sonnet

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Canada Motor Insurance Market market is studied from 2017 - 2027.

The Canada Motor Insurance Market is growing at a CAGR of >4.4% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2021.

The Co-operators, The Personal Insurance, Intact Insurance, Desjardins, Belairdirect are the major companies operating in Canada Motor Insurance Market.

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