Middle East and Africa Motor Insurance Market to Grow with a CAGR of 6.76% through 2030

The Middle East and Africa Motor Insurance Market is driven by rising vehicle ownership, mandatory insurance regulations, digital adoption, increasing demand for EV and luxury car coverage, and technological advancements like AI-driven claims processing and telematics integration.

According to TechSci Research report, “Middle East and Africa Motor Insurance Market – By Country, Competition, Forecast & Opportunities, 2030F”, the Middle East and Africa Motor Insurance Market stood at USD 44.88 Billion in 2024 and is anticipated to grow USD 66.47 Billion by 2030 with a CAGR 6.76% during forecast period. The Middle East and Africa (MEA) motor insurance market is experiencing steady growth, driven by rising vehicle ownership, regulatory mandates, and advancements in digital insurance solutions. As urbanization accelerates and disposable incomes increase, more individuals and businesses are purchasing vehicles, fueling the demand for comprehensive insurance policies. Government regulations in countries like Saudi Arabia, the UAE, South Africa, and Egypt mandate motor insurance, ensuring market expansion. Additionally, growing awareness about financial protection and the rising adoption of electric and luxury vehicles contribute to the evolving insurance landscape. Despite market challenges such as fraud, low penetration, and economic fluctuations, the MEA region presents significant opportunities for insurers, particularly with the rise of telematics, AI-driven claims processing, and digital platforms.

Several factors are driving the growth of the Middle East and Africa motor insurance market. Rising vehicle ownership across key economies, including Saudi Arabia, South Africa, and the UAE, is increasing the demand for both third-party and comprehensive insurance coverage. Government regulations mandating compulsory third-party liability insurance are further boosting market penetration, ensuring that all registered vehicles are insured.

The future of the MEA motor insurance market looks promising, with technological advancements, regulatory reforms, and evolving customer preferences driving its expansion. The increasing adoption of digital insurance platforms, AI-driven risk assessments, and blockchain-based claims processing will streamline operations and improve consumer trust. Stronger enforcement of mandatory motor insurance laws, particularly in Gulf countries, will further strengthen market penetration. The rise of electric vehicles and connected cars presents new opportunities for insurers to develop customized policies that cater to modern mobility needs.

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The Middle East and Africa Motor Insurance Market is segmented into coverage, vehicle age, application, distribution channel, and company.

Based on the distribution channel, Direct Response segment is the fastest-growing in the Middle East and Africa motor insurance market, driven by the rapid adoption of digital platforms, mobile apps, and InsurTech solutions. Consumers increasingly prefer purchasing insurance directly from insurers' websites, mobile applications, and online aggregators, bypassing traditional agents and brokers. The rise of AI-powered chatbots, instant policy issuance, and telematics-based pricing models further enhances customer convenience and cost efficiency. Additionally, regulatory bodies in countries like the UAE and Saudi Arabia are promoting digital insurance platforms, accelerating the shift toward direct response channels and making them the leading growth segment in the market.

Based on country, UAE is the fastest-growing country in the Middle East and Africa motor insurance market, driven by rising vehicle sales, government-mandated insurance, and rapid digital transformation. With increasing adoption of electric vehicles (EVs) and luxury cars, demand for specialized coverage is expanding. The UAE's strict regulatory framework ensures compliance, while AI-driven claims processing and telematics-based pricing enhance efficiency. Additionally, InsurTech innovations and mobile-based insurance platforms are streamlining policy purchases and renewals. As the country embraces smart mobility solutions and digital insurance services, the UAE remains at the forefront of motor insurance market growth in the region.

Major companies operating in Middle East and Africa Motor Insurance Market are:

• Momentum Group
• QIC Group
• Allianz SE
• Sukoon Insurance PJSC
• Abu Dhabi National Insurance Company (ADNIC)
• Gulf Insurance Group
• Hollard Life Assurance Company Ltd
• MS&AD Insurance Group Holdings
• National Takaful Company PJSC
• Auto & General Insurance Company Limited

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“The Middle East and Africa motor insurance market is driven by rising vehicle ownership, government-mandated insurance, digital adoption, and increasing demand for EV and luxury car coverage. Key trends include usage-based insurance (UBI), AI-driven claims processing, telematics integration, and InsurTech innovations. Digitalization is enhancing fraud detection, policy personalization, and customer engagement. The rise of EV-specific insurance policies reflects the growing shift toward sustainable mobility. Additionally, governments are enforcing stricter regulations and digital compliance measures, improving transparency and market stability across the region,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"Middle East and Africa Motor Insurance Market By Coverage (Liability Coverage, Collision Coverage, Comprehensive Insurance, Others), By Vehicle Age (New Vehicle, Old Vehicle), By Application (Commercial Vehicle, Personal Vehicle), By Distribution Channel (Insurance Agents/Brokers, Direct Response, Banks, Others), By Country, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Middle East and Africa Motor Insurance Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Middle East and Africa Motor Insurance Market.

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