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Global Motor Insurance: Rising Costs, Market Challenges, and Innovation

Insurance news Legislation news Technology / Innovation Research / Market Trends October, 01 2025

Germany: Insurers: Hourly rate of car repair shops over 200 euros for the first time

01 Oct 2025

Hourly rates in German auto repair shops have surpassed €200 for the first time in 2024, with bodywork averaging €202 and paintwork €220, up about 8% from the previous year. Since 2017, workshop costs have risen 50%, far outpacing general inflation of 24%, putting pressure on insurers as average car claim payouts reached around €4,250. Rising labor and parts costs have contributed to nearly €5 billion in industry losses over the past two years, prompting premium increases. The GDV expects the sector to return to profitability in 2025, though cost pressures remain high.

The cyberattack on Jaguar Land Rover: one month without car production and a 2 billion euro loan from the British government.

01 Oct 2025

Jaguar Land Rover suffered a major cyberattack on August 31, reportedly by a teenage hacker group, which halted production across its UK and international plants for the entire month of September, resulting in roughly 30,000 undelivered vehicles. The company faced estimated losses of £200 million and had to furlough many of its 33,000 employees, prompting the UK government to provide a £1.5 billion credit line to support operations and supply chains. Production is gradually resuming in October, though full capacity may take several weeks to restore, affecting over 120,000 jobs across the supply chain. The attack, attributed to the “Scattered Lapsus$ Hunters,” may have exposed customer data, and Jaguar Land Rover is working with the UK National Cyber Security Centre to secure its systems.

US Market: NFP Launches Conduzco Seguros

30 Sep 2025

NFP, an Aon company, has launched Conduzco Seguros, a Spanish-language online auto insurance solution for U.S. drivers traveling to Mexico, developed in partnership with Mexican insurer Quálitas. The program, overseen by NFP’s Nate Watson, targets the U.S. Spanish-speaking market, particularly in states with high cross-border travel like Texas and California. It provides trusted, comprehensive coverage from a leading Mexican insurer, addressing a recurring need for holiday and family travel. Both NFP and Quálitas emphasize the partnership’s focus on affordability, convenience, and meeting the specific needs of this growing community.

Italy: Car insurance prices are rising in Italy, higher than in the rest of Europe.

29 Sep 2025

In Italy, car insurance premiums remain the highest in the EU and have risen in recent years, with Naples being the most expensive area. Average premiums reached €286 in 2023, about 36% higher than in France, Spain, and Germany, and increased 10.8% between 2023 and 2025. Rising costs are driven by claims for injuries, fatalities, and repair expenses, while regional disparities persist. Discounts, telematics devices, and direct insurer channels can help reduce costs, though premiums for motorcycles and mopeds also show significant variation across the country. Overall, Italian drivers face some of the heaviest auto insurance burdens in Europe.

Spain: "Per capita insurance spending in Spain is still far below that of other countries."

29 Sep 2025

Francesc Rabassa, president of the Club of International Insurers (CAI), highlights the need for a more integrated and recognized insurance sector in Spain. He emphasizes that CAI brings together all players—from insurers and brokers to lawyers and HR specialists—providing a comprehensive perspective on industry challenges and opportunities. Rabassa notes that the sector contributes significantly to society through risk coverage, public financing, and economic stability, yet suffers from low public awareness and limited lobbying. He also stresses the importance of financial literacy, noting gaps in life, health, and property insurance coverage compared to other European countries. Despite regulatory, technological, and climate challenges, Rabassa believes the Spanish insurance industry is well-positioned for the future, especially as it adapts to emerging risks like cyberattacks and new liability exposures.

UK: Guest blog - Motor claims inflation: Causes, consequences and what comes next

29 Sep 2025

Motor claims inflation continues to outpace general inflation, with UK claims costs rising 34% between 2019 and 2023 against 21% CPI growth. Key drivers include higher vehicle prices, costly repairs linked to EVs and ADAS, labour shortages in skilled repair and care sectors, and growing costs from micromobility and injury claims. Theft values, longer repair times, and rising care costs are also pushing expenses upward. While the ABI and insurers are working with government and industry to address skills gaps, road safety, and fraud, new challenges such as compulsory mediation may add complexity and costs before delivering benefits. Overall, motor claims inflation shows no sign of easing in the near term.

Hong Kong: Zurich Insurance partners with YAS

29 Sep 2025

Zurich Insurance (Hong Kong) has partnered with insurtech startup YAS to launch a rewards-based motor insurance program for EV and hybrid taxi drivers. Using YAS’s TAXY platform, which applies AI-driven driving behavior scoring, the scheme offers three safety tiers, rewarding safer drivers with benefits ranging from personal accident coverage to property and family protection. Zurich highlighted the initiative as part of its commitment to supporting taxi drivers and building a more sustainable transport ecosystem. YAS said the program aims to improve safety, fleet efficiency, and long-term innovation across Hong Kong’s taxi industry.

Car insurance: one in 10 cars in Campania is uninsured, with Lombardy being the biggest tax evaders.

28 Sep 2025

In Italy, the number of uninsured vehicles is rising, with an estimated 2.9 million cars (6.1% of the total) lacking coverage in 2024. The highest rates are in the south and islands, particularly Campania (10.6%) and Sicily (8.8%), while northern regions like Lombardy are also seeing sharp increases, up 42.4% with 420,000 uninsured cars. This growing evasion, valued at around €1.4 billion nationally, poses serious financial and legal risks in the event of accidents. Despite rising premiums in regions like Abruzzo, Calabria, and Umbria, cost alone does not justify going uninsured.

Japan general insurance market eyes record premiums

26 Sep 2025

Japan’s general insurance market is projected to grow from JPY12.5 trillion (US$85.4 billion) in 2025 to JPY14.5 trillion (US$102.6 billion) by 2030, driven by motor, property, and liability insurance, which together will account for over 80% of gross written premiums. Motor insurance, the largest segment, is rebounding due to higher premiums, vehicle sales recovery, and a new model-specific rate class system. Property and liability insurance are growing amid frequent natural disasters, premium hikes, and rising demand for cyber and D&O coverage. Regulatory reforms, including a revised Insurance Business Act, are expected to enhance consumer confidence and reduce insurer losses. Japan’s life insurance sector is also forecast to expand strongly, supported by rising demand for yen-denominated single-premium products.

UK Motor insurance crisis: drivers cut back or go uninsured

25 Sep 2025

UK motorists are increasingly reducing cover or going uninsured as rising premiums and cost-of-living pressures strain household budgets. Around 15% of drivers have downgraded their policies, with the most financially stretched hardest hit, while fears of staged accidents have prompted some to install dashcams or drive less. Price comparison websites dominate policy purchases, intensifying competition and pressure on insurers. Experts suggest innovation, usage-based policies, and smarter data analytics for risk and fraud management are key to improving affordability and protecting motorists. Without action, the market faces a growing coverage gap, with potential risks for drivers and overall road safety.

Formula 1 bosses to target motor insurance

25 Sep 2025

The FIA has launched a Motorsport Insurance Task Force to address surging premiums, reduced coverage availability, and insurers’ waning appetite for high-risk racing events, with an interim report due later this year. While focused on motorsport, the initiative highlights challenges familiar to Canadian auto insurers, who face soaring theft claims, rising repair costs, and high loss ratios. Motorsport sits at the extreme end of risk, but the same pressures—technology complexity, severe losses, and regulatory oversight—are reshaping Canada’s auto market. For Canadian insurers, the task force’s findings on affordability, claims management, and loss prevention could offer useful insights, reinforcing the need for collaboration with regulators to manage systemic cost inflation.

Colombia: The price of Soat would soon increase in Colombia if this proposal that the Petro government has in mind is approved.

25 Sep 2025

Colombia may soon see an increase in the mandatory SOAT insurance, following discussions amid the government’s proposed tax reform and ongoing evasion issues, especially among motorcyclists. Despite a 50% tariff cut for low-cylinder motorcycles in 2024, coverage remains low, with 58% of motorcyclists and 47% of vehicles uninsured. Financial Superintendent César Ferrari emphasized that reducing premiums alone hasn’t solved the problem, and adjustments may be needed to ensure tariff sufficiency and system sustainability. The insurance industry urges a technical review of rates and stronger prevention and enforcement measures. Final decisions on any SOAT price changes will be made by President Gustavo Petro and the Finance Minister later this year.

France: Car insurance: reasons for the new price increase in 2026

24 Sep 2025

Auto insurance prices in France are expected to rise 4–5% in 2026, following a 6.8% increase in 2025. This growth is driven by higher repair costs, including labor and parts, as well as rising claims from natural disasters like hailstorms and increasing vehicle values. Road safety data also contribute, with serious injuries rising despite a slight drop in fatalities, creating uncertainty for insurers. Overall, these factors continue to make auto insurance one of the largest household expenses after car purchase and fuel.