Global Motor Insurance Landscape

India: Claims rise 33% in monsoon as most car owners miss engine cover: Report

6 Aug 2025

Motor insurance claims during India’s monsoon season have risen 33% over the past two years, increasing from ₹30,000 in 2023 to ₹40,000 in 2025, according to Policybazaar. Despite water damage being a common issue, only 20% of customers opt for engine protection add-ons, which are not included in standard policies. Tier-II and Tier-III cities account for 75% of claims due to poor infrastructure and increased vehicle usage. While 75% of policyholders buy roadside assistance, only half choose zero depreciation cover, leaving many with high out-of-pocket expenses. SUVs lead in claim costs, averaging ₹60,000 per incident. Experts urge consumers to invest in essential add-ons to avoid high repair costs during increasingly severe monsoons.

Germany: Exchange rates eat into Axa’s profits

5 Aug 2025

French insurer Axa reported a slight 2% profit decline to €3.9 billion in the first half of 2025, mainly due to unfavorable currency effects, missing analyst expectations. Despite this, the company’s core business performed well, with revenue up 7% to €64.3 billion and adjusted profits rising 6% to nearly €4.5 billion, beating forecasts. Axa also announced the acquisition of Italian direct insurer Prima, a smaller player focused on motor insurance, for around €500 million to nearly double its car insurance presence in Italy. The announcement triggered a 6% drop in Axa’s stock price, making it the biggest loser in the EuroStoxx 50 index on that day. CEO Thomas Buberl remains confident about meeting the company’s medium-term profit targets.

UAE Central Bank suspends motor insurance business of Oriental Insurance in Dubai: Here’s why

2 Aug 2025

The Central Bank of the UAE (CBUAE) has suspended the motor insurance operations of Oriental Insurance Company (OIC) in Dubai due to non-compliance with solvency and guarantee requirements. As a result, OIC’s Dubai branch will enter run-off mode from August 7, 2025, meaning it will stop issuing new policies but continue servicing existing ones. The company failed to secure a required AED 100 million guarantee and was denied an extension to meet regulatory approvals. Despite the suspension, OIC assured it will honor all obligations on current policies. OIC also operates in Nepal and Kuwait. This is part of a broader trend, as other Indian insurers like GIC Re and New India Assurance have previously placed foreign operations into run-off mode.

Germany: These are the most popular car insurers

1 Aug 2025

Many drivers prioritize value for money when choosing car insurance, but service quality and contract terms also strongly influence satisfaction. A recent survey by the German Institute for Service Quality (DISQ) shows that both direct insurers and branch insurers receive generally high ratings, with many customers satisfied with service—especially digital contact for direct insurers and in-person service for branch insurers. The top-ranked branch insurer is HUK-Coburg, praised for transparency and customer service, while CosmosDirekt leads among direct insurers with low complaint rates and strong overall performance. Despite high satisfaction, rising premiums remain a key reason customers consider switching providers. Overall, good service combined with fair pricing is essential for customer loyalty in the competitive car insurance market.

Fast-growing motor insurer Cuvva enlists bankers to explore sale

1 Aug 2025

UK-based digital insurer Cuvva, known for offering monthly and short-term car insurance, has appointed Perella Weinberg Partners to explore a potential sale after receiving unsolicited interest from potential buyers. Since its launch in 2015, Cuvva has sold over 13 million policies and serves around 1.4 million customers, claiming about 7% of the UK’s monthly motor policy market. The company recently reported a record year in 2024, tripling its profit to £12.8 million on £27.4 million in revenue. Cuvva is backed by LocalGlobe and chaired by Bruce Carnegie-Brown, former chair of Lloyd’s of London. It remains focused on finding a buyer aligned with its growth strategy and shareholder value.