Global Motor Insurance Updates and Regulatory Developments

Car Insurance Stagnant in Mexico Since the Pandemic

31 Dec 2025

The proportion of insured vehicles in Mexico has remained largely unchanged over the past five years, reaching only 32.3% of the total fleet by the end of 2024. The sector has struggled to recover from a drop during the COVID-19 pandemic, with slow growth attributed to low financial literacy and limited enforcement of mandatory insurance. Mexico City and Nuevo León show the highest insurance penetration, while Campeche and Tlaxcala report the lowest. Upcoming changes, including the elimination of VAT deductibility for insurers in 2026, may drive higher auto insurance costs, prompting companies to adjust strategies to limit consumer impact.

Harris and Troy confirm Insurance Compensation Fund Levy cut

30 Dec 2025

Ireland’s Minister for Finance Simon Harris and Minister of State Robert Troy have confirmed that the Insurance Compensation Fund levy will be reduced from 2% to 1% from 1 January 2026, following a Central Bank decision announced in October. This is the first change to the levy in 14 years and reflects improved funding levels after around €1bn in Exchequer advances since 2011. The cut is expected to benefit about 2.3 million motor and 1.3 million home insurance policies, reducing motor insurance contributions by roughly €57m next year. The Central Bank and government have urged insurers to pass the savings on to consumers without delay.

2026 Brings Key Changes for Drivers

30 Dec 2025

In 2026, drivers in Germany and Europe face several updates, including new TÜV inspection colors, ongoing driver’s license exchanges, and updated CO₂-based fuel pricing. Euro 6e emissions standards will apply to new vehicles, with Euro 7 phased in from late 2026, introducing stricter limits including tire and brake particle emissions. Minimum battery durability requirements for electric and plug-in hybrid vehicles will also be enforced. From January 2026, NG eCall will be mandatory for new vehicle types, and from July, advanced driver assistance systems such as pedestrian emergency braking, lane-keeping, and intelligent speed assistants become compulsory. Additionally, toll systems and motorway vignettes in Germany, Austria, Switzerland, and Croatia will see pricing, digitalization, and structural changes.

HDFC ERGO Strengthens Electric Two-Wheeler Protection with Service-Led Claims Support

30 Dec 2025

HDFC ERGO is enhancing its electric two-wheeler insurance by focusing on clear coverage, digital convenience, and service-led claims support. As EV scooters and bikes grow in popularity, customers now expect insurance to be easy to understand, renew, and dependable during claims. HDFC ERGO offers comprehensive and third-party coverage with optional add-ons, while enabling online purchase, renewal, and cashless repair support through partner garages. The insurer emphasizes a smooth claims experience and renewal process to maintain customer confidence and continuity of benefits. This approach reflects the broader shift in green mobility insurance toward simplicity, reliability, and service-focused solutions.

New Ohio bill would require OEM parts option in insurance policies

30 Dec 2025

A new Ohio bill, HB 636 – the Auto Insurance Transparency Act – would require insurers to offer policyholders the option to use OEM replacement parts. If OEM parts are not covered, customers could still choose them by paying the cost difference compared with non-OEM alternatives. The legislation also mandates clear disclosure in repair estimates about the use and availability of non-OEM parts, along with consumer rights and warranty notices. Supporters say the bill would improve transparency, protect consumers, and allow insurers to offer OEM endorsements for additional premium. Insurers that fail to comply would face penalties for unfair or deceptive practices.

Insurance and safety frameworks in place as Guangdong vehicles enter HK’s urban areas

27 Dec 2025

Guangdong-registered vehicles have been allowed to enter Hong Kong’s urban areas for the first time under a new cross-border travel scheme. The Southbound Travel for Guangdong Vehicles (Entry into Urban Area) programme officially began on 23 December. Authorities confirmed that insurance, safety, and risk management frameworks are in place to support the initiative. The move marks a significant step in facilitating greater cross-border mobility between Guangdong and Hong Kong.

Issuance of licences for conditional Intelligent driving introduces new variables to motor insurance

26 Dec 2025

China’s Ministry of Industry and Information Technology has issued its first licences for L3 conditional autonomous driving, signalling a shift from testing to early commercial use. The move introduces new uncertainties for the motor insurance market as liability and risk profiles evolve. Insurers are expected to reassess pricing, coverage design, and claims responsibility for intelligent driving systems. The development also accelerates the transformation of motor insurance alongside the growth of new energy and smart vehicles.

Car dealership ordered to pay $12.9k after insurance error left stolen car uninsured

26 Dec 2025

A New Zealand car dealership, NZ Motors 4WDS, was ordered to pay $12,900 to a customer after an insurance application error left his 1996 Toyota Hilux Surf uninsured when it was stolen. The dealership incorrectly reported the vehicle’s suspension modification, which caused the insurer to void the policy. The tribunal found Singh partly responsible for not verifying the insurance details but ruled the dealership liable for its failure to accurately disclose the modification. The payout covers part of the vehicle’s value and additional hardship costs.

Thailand:Mandatory motor insurance policies to be fully digitalised wef 1 Jan 2026

25 Dec 2025

Thailand’s Office of Insurance Commission (OIC) will require all compulsory third-party motor insurance policies to be fully digital starting 1 January 2026. Policyholders will receive their insurance documents electronically and instantly. The move aims to modernize policy issuance and improve accessibility. Insurers must comply with the new directive to ensure seamless digital delivery.

Motor insurance market facing challenging 2026

24 Dec 2025

EY research suggests the UK motor insurance market will move into loss in 2026, after only breaking even in 2025. The net combined ratio is forecast to worsen from 97% in 2024 to 101% in 2025 and 111% in 2026, meaning insurers will pay out more than they earn in premiums. This decline is mainly driven by falling premium rates and rising repair costs. While lower premiums benefit motorists, they are expected to weaken insurers’ financial positions. Despite this, the sector is undergoing transformation due to electric vehicles, changing customer behaviour, and technological advances.