Automotive finance & insurance is a significant segment of automotive services market. Automotive financing refers to credit or loan services provided by various entities such as banks, credit unions or captive financial services of original equipment manufacturers (OEMs). Automotive credit covers partial or full buying cost of a vehicle for the buyer. The buyer is then supposed to pay the loan along with the credit interest to the financing body over a stipulated period of time. Conversely, automotive insurance refers to contract of liability, property & medical coverage between the insurance company and insurer where the insurance company pays losses as per policy against a premium payable by the insurer.
Global automotive financing market is segmented on the basis of financing body into banks and non- banking financing sources. Banks, a primary source of financing, dominates the global market including both matured and emerging markets. Captive financing by OEM is another financing option that is purely owned and controlled by OEMs, enabling them to vertically integrate to their other portfolio of insurance and credit protection services.
Automotive insurance market is classified by premium structure into personal and commercial insurance premiums, of which personal premium accounts for majority of the market share. Global automotive insurance market is bound to grow in near future because of increase in automotive sales globally, innovations in insurance products and rise in government mandates.
Although global automotive industry is expected to witness positive growth, auto insurance market is anticipated to shrink in coming years. This is because automotive industry is expecting fewer accidents & fatalities, owing to stringent vehicular safety regulations and improving infrastructure. Conversely, automotive financing market is expected to witness optimistic growth due to rising financing activity within premium and second hand vehicle segments in matured and emerging markets respectively. However, lack of standardization, difference in credit profiles, loan terms and others factors may deter the market growth.
ASDReport.com has a good collection of reports on automotive finance & insurance market. The reports cover various topics related to motor insurance and motor vehicle finance like, working capital management, financial assessment, structured & microfinancing and much more.