Market Trends of Germany Motor Insurance Industry
This section covers the major market trends shaping the Germany Motor Insurance Market according to our research experts:
Increase in Number of Contracts in Motor Insurance
Automotive is the largest segment of the insurance industry in Germany. Most German non-life insurers are reasonably focused on auto insurance, with Auto insurance holding the largest share of non-life insurance premiums on the insurance market, which is EUR 2.2 billion in 2021. This has surged the number of contracts in motor insurance year-on-year, thus driving the growth of the motor insurance industry.
Increase in Electric Cars Sales is Driving the Demand for Motor Insurance
In the full calendar year 2021, Volkswagen was the top-selling electric car brand in Germany, supplying the German market with over a fifth of all battery-electric cars sold. Tesla moved ahead of Renault while Hyundai outsold Smart. The Tesla Model 3 was Germany's favorite electric car model in 2021, ahead of the VW Up and the VW ID3. Electric car sales in Germany increased by 83%, and market share doubled to 13.6%.
New electric passenger vehicle registrations in Germany in 2021 increased by 83.3% to 355,961 battery-electric cars. This more than doubled electric cars' share of the German new car market from 6.65% in 2020 to a new record high of 13.6% in 2021.
The total German new car market contracted by 10.1% in 2021 to only 2,622,132 cars compared to 2,917,678 in 2020. These two years were the weakest for the German vehicle market since 2010. Although petrol remained by far the largest component of new cars, its market share slipped to 37.1% (46.7% in 2020), while the share for diesel was down to 20.1% (28.1% in 2020).
