Kathmandu. Global motor insurance premiums continue to rise. Motor insurance is expected to increase in the next 5 years.
According to a report prepared by Quinnal, the demand for motor insurance and high prices are the reason for the increase in premiums. The global car insurance market is expected to grow to $2.13 trillion by 2026. The car insurance market is expected to grow to $2.86 trillion by 2031, growing at an average annual growth rate of 6.05 per cent.
Similarly, the global motor insurance market was valued at $976.1 billion in 2025. The motor insurance market is expected to grow to $1.75 trillion by 2034. This will increase by an average of 6.7 percent annually after 2026.
At the same time, insurance companies are increasing the use of artificial intelligence (AI) in underwriting and claims. Global AI use is expected to reach $26.3 billion in insurance revenue this year and $114.52 billion by 2031. This is expected to increase by 34.2 percent year-on-year.
Industry surveys indicate that most large insurance companies are piloting or implementing AI tools in underwriting and claims workflows. However, full adoption varies by market and company size.
AI-powered virtual agents and chatbots now handle 60 percent to 80 percent of customer contacts associated with an initial insurance claim. As the adoption of telematics continues, usage-based insurance is also increasing. The global application-based insurance market is projected to reach approximately $243.32 billion by 2030. It will grow at an annual rate of about 23.1 percent. –Agency
