Compulsory Third Party (CTP) Insurance Market Outlook – 2027
Compulsory third party (CTP) insurance is a policy purchased for protection against claims for damages & losses incurred by third-party, which is not covered under normal insurance. In addition, it is a form of liability insurance purchased by insured consumer to cover losses against claims of another third-party. Furthermore, CTP insurance policy primarily aims at protecting financial interest of the owner from the cost incurred by damages triggered by third-party.
The global compulsory third party (CTP) insurance market is segmented on the basis of insurance type, application, and region. Based on insurance type, the CTP insurance market is divided into liability insurance, physical damage insurance, and others. In terms of application, the market is categorized into t automotive, maritime, and others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).
Key players operating in the global compulsory third party (CTP) insurance industry include PICC, Progressive Corporation, Ping An, AXA, Sompo Japan, Tokyo Marine, Travelers Group, Liberty Mutual Group, Zurich, and Aviva. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global compulsory third party (CTP) insurance market.
Top Impacting Factors
Rise in demand for protection against third-party losses, increase in automobile sales globally, and rise in disposable income for consumers drive growth of the market. However, high implementation cost of CTP insurance insurance claims is expected to hamper growth of the market. Contrarily, implementation of stringent government regulations, owing to rise in number of compulsory third party insurance frauds are the major factors expected to create lucrative opportunities for the market in upcoming years.
Rise in Demand For Protection Against Third-Party Losses
Owing to rise in awareness & major benefits provided by CTP insurance, demand for this insurance is expected to grow significantly, which propels the market growth. In addition, key players in the market are expanding their existing business lines, entering into partnerships, and implementing other strategies in the market. For instance, in 2020, Aviva, which is a compulsory third party insurance company, expanded its CTP insurance services toward automobile showrooms in London. Therefore, rise in demand for protection against third-party losses is anticipated to boost the market growth.
Implementation of Stringent Government Regulations Due to Rise in Number of CTP Insurance Frauds
The CTP insurance plays a vital role in the insurance industry as it helps in reducing monetary cost for owners against damages occurred by third-party. Furthermore, governments across several countries are focused on reducing number of insurance frauds, in terms of claiming normal insurance for repair of vehicles against third-party losses. Therefore, implementation of stringent government regulations due to rise in number of compulsory third party insurance frauds is expected to propel growth for the market.
Key Benefits of the Report
- This study presents analytical depiction of the global compulsory third party (CTP) insurance market forecast along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the compulsory third party (CTP) insurance market share.
- The current market is quantitatively analyzed to highlight the global compulsory third party (CTP) insurance market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed compulsory third party (CTP) insurance market analysis based on the present and future competitive intensity of the market.
COVID-19 Scenario Analysis
- The unpredictable COVID pandemic has severely affected major business operations of insurance companies. This is attributed to decline in huge unemployment and reduced spending over purchasing insurance policy sales, owing to the coronavirus outbreak.
- In addition, the recession of the global economies across the world is expected to reduce the demand for the compulsory third party insurance policies as the coronavirus pandemic had affected business owners to save additional cost for their businesses, owing to extended timelines for government declared lockdowns.
Questions Answered in the Compulsory Third Party (CTP) Insurance Market Research Report
- Who are the leading market players active in the global compulsory third party (CTP) insurance market?
- What would be the detailed impact of COVID-19 on the global compulsory third party (CTP) insurance market size?
- How the current compulsory third party (CTP) insurance market trends would influence the market in the next few years?
- What are the driving factors, restraints, and opportunities in the global market?
- What are the projections for the future that would help in taking further strategic steps?
Compulsory Third Party (CTP) Insurance Market Report Highlights
By Insurance Type
Key Market Players
Zurich, Ping An, Travelers Group, PICC, Tokyo Marine, Liberty Mutual Group, Sompo Japan, Progressive Corporation, AXA, Aviva