The breakdown assistance market - Spain

Breakdown assistance comes into play when a user's vehicle breaks down, or after an accident. Assistance companies call in towing companies to help the user, in return for a fee that may or may not be covered by the insurance company. On a global scale, the breakdown assistance market is growing: it is benefiting from an ever-expanding vehicle fleet, particularly in Asia, while the increasing digitalization of the economy is encouraging the introduction of digital solutions that are quicker to implement and less costly. In Spain, the breakdown assistance market is rather concentrated upstream, with assistance companies holding large market shares, such as MAPFRE, which has a 20% share of the motor insurance market. Downstream, tow truck operators are much more numerous. Around 44% of accident assistance is concentrated between June and September: the summer months represent a much busier period, with many people going on vacation. The Spanish breakdown assistance market is also determined by the regulatory environment, which sets maximum reimbursement rates per service. In recent years, there has been a trend towards digitalization and closer ties between different breakdown centers, with a number of takeovers.