Fire Insurance Market Research, 2028
The global fire insurance market size was valued at $58.49 billion in 2019, and is projected to reach $120.49 billion by 2028, growing at a CAGR of 11.9% from 2021 to 2028.
Fire insurance is an agreement between policyholder and insurance company to cover all the losses and damages caused by fire eruption to policyholder’s property. Fire accidents are unexpected and can happen instantly anywhere and includes businesses, residential, and others due to fire-outbreak, explosion, bursting of the water tank, and others. All these factors cause enormous destruction and put policyholder into risk in terms of finances, which accelerate the need for fire insurance policy among consumers. Fire insurance is a kind of property coverage that is typically included in homeowner’s policy and provides cover against the damages happened to the property due to a fire.
According to the Economic Times, the premium collected by general insurance industry reported 6.7 % growth on February 21, 2021 compared to previous year. This growth is attributed to increase in revenue of fire and health insurance segments. Furthermore, to maintain consistent growth, all fire insurance products are governed by “All India Fire Tariff, 2001” from April 1, 2021, which makes all terms, conditions, clauses, warranties, policy, and endorsement wordings uniform across insurers and benefits the policyholders by encouraging the waiver of under insurance. This means that policyholders buy fire insurance products as per their risk perception.
The key factor driving the growth of the fire insurance market trends include increased demand for insurance policies, rise in need for financial safety in case of increasing uncertainties, and surge in number of properties are the major factors that drive the global fire insurance market growth. Moreover, lack of awareness regarding fire insurance policy, and high premium cost hamper the market growth. Furthermore, implementation of technologies in existing products and service lines and government initiatives regarding fire insurance policies are expected to provide lucrative opportunity for the market expansion during the forecast period.
The standard coverage segment is expected to garner a significant share in the fire insurance market during the forecast period owing to coverage of the cost of damage up to property’s actual cash value and provision of financial safety against non-accident-related claims. However, the optional coverage segment is expected to grow at the highest rate during the forecast period, due to assurance of full value for goods and replacement in case of theft, loss or damage under one premium.
Region wise, the fire insurance market revenue was dominated by North America in 2019, and is expected to retain its position during the forecast period. The major factors that drive the growth of the market in this region include the presence of key players such as Allstate Insurance Company, and USAA. In addition, increase in incidence of lightning, explosion, accidents, injuries, and damage to someone else’s property propel the adoption of fire insurance in this region However, Asia-Pacific is expected to witness significant growth rate during the forecast period, owing to increase in construction and real estate activities. Furthermore, The International Fire Safety Standards in Asia is focused on formulating regulations that increase the investment in infrastructure, and bring greater consistency of minimum levels of fire safety by providing specific standards, thereby providing lucrative opportunities for the market in this region.
The report focuses on the growth prospects, restraints, and trends of the global fire insurance market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers.
Segment Review
The fire insurance market share is segmented on the basis of coverage, enterprise size, industry vertical and region. In terms of coverage, it is fragmented into standard coverage and optional coverage. Depending on enterprise size, it is divided into large enterprises and small and medium enterprises. Based on industry vertical, it is classified into manufacturing, healthcare, energy & utilities, retail & consumer goods, IT & telecom, hospitality and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Coverage
Standard Coverage accounted for the largest market share in 2019.
The key players profiled in the fire insurance industry report are Amica, Allianz, Allstate Insurance Company, AXA, ASSICURAZIONI GENERALI S.PA., GEICO, Liberty Mutual Insurance, Ping An Insurance (Group) Company of China, Ltd., State Farm Mutual Automobile Insurance Company, and USAA. These players have adopted various strategies to increase their market penetration and strengthen their position in the fire insurance industry.
By Industry Vertical
IT & Telecom is projected as one of the most lucrative segments.
Report Coverage & Deliverables
The fire insurance market report typically provides a detailed analysis of various segments within the industry, including types of fire insurance policies, enterprise size distribution, and industry verticals covered. The deliverables include market size estimates, trends, growth drivers, competitive landscape, and projections for the forecast period. Insights into government regulations, risk factors, and innovation in fire insurance products are also covered. Furthermore, the report outlines strategies adopted by key market players, and regional dynamics, and provides future market opportunities and challenges.
Coverage Insights
Fire insurance provides financial protection against damages caused by fire to property, equipment, and inventory. Policies often cover rebuilding, repair costs, and compensation for lost income due to fire-related business disruptions. The types of coverage offered include.
Enterprise Size Insights
Fire insurance policies cater to a wide range of enterprise sizes, with segmentation often focusing on Small and Medium Enterprises (SMEs), and Large Enterprises: Larger enterprises require comprehensive coverage with high insured amounts, covering not only physical assets but also operational disruptions. They are often offered customized solutions that also incorporate business interruption insurance, which compensates for loss of revenue during the recovery period after a fire.
The fire insurance share for large enterprises tends to be higher in terms of premium value, while SMEs account for a larger volume in terms of policy numbers.
Industry Vertical Insights
Fire insurance is crucial across multiple industries, with growth driven by sectors that are highly susceptible to fire-related risks.
Manufacturing: fire insurance growth is attributed to the high-risk environment, particularly in sectors like chemical, textile, and automotive manufacturing, which require comprehensive fire protection.
Regional Insights
North America: The fire insurance market in North America is well-established, driven by stringent government regulations and awareness regarding fire safety. The U.S. dominates the market due to large commercial real estate and industrial facilities.
Asia-Pacific: This region shows the fastest growth, with increasing industrialization and urbanization in countries such as China and India. Rising property development and increased fire safety awareness among businesses are driving demand.
Key Companies & Market Share Insights
Key players in the fire insurance market hold substantial market shares due to extensive product offerings and strong distribution networks. These companies include: Allianz SE, State Farm Insurance, American International Group (AIG), AXA Group, Zurich Insurance Group, Chubb Limited, Liberty Mutual Group, and Nationwide Mutual Insurance Company.
Top impacting factors
Rise in need for financial safety in case of increasing uncertainties
Rise in demand for fire insurance sector on accidents such as lightening, explosion, aircraft damage, riot, strike, and malicious damage builds pressure on insurance companies to invest and develop such products that have less proliferation, high coverage, and provide financial security in the form of destruction, replacement or any other damages. In recent years, there has been an increase in the number of accidents, in terms of typhoons, storm, cyclone, and Tornado which resulted in the need for fire insurance. Majority of the enterprises and homeowners depend on fire insurance to prevent themselves from future financial losses such as injuries to goods, property, and home contents in fire insurance service. Insurance providers have increased the number of coverages in their products for enhancing the overall user interface experience and to keep themselves ahead of their competitors in the fire insurance market in the upcoming years.
Government initiatives regarding fire insurance policies
Several government bodies are undertaking huge initiatives regarding fire insurance policies and allowing customers to avail benefits of wide range of insurance coverage. Furthermore, government is providing various fire insurance schemes which is helping the insurance industry to provide insurance policies with profit motive and claim settlement. For instance, all general insurers dealing in fire and allied-perils insurance business have to offer three standard products such as Bharat Griha Raksha, Bharat Sookshma Udyam Suraksha, and Bharat Laghu Udyam Suraksha designed by Insurance Regulatory and Development Authority of India (IRDAI) covering the risks of dwellings and micro and small enterprises. Therefore, these initiatives by government are expected to provide lucrative opportunities to the fire insurance market in the upcoming years in fire insurance platform.
By Region
Asia-Pacific would exhibit the highest CAGR of 15.% during 2021-2028.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global fire insurance market forecast along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the global fire insurance market share is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the fire insurance market from 2019 to 2027 is provided to determine the market potential.
Fire Insurance Market Report Highlights
| Aspects | Details |
 By COVERAGE |
|
 By ENTERPRISE SIZE |
|
 By INDUSTRY VERTICAL |
|
 By Region |
|
 Key Market Players | Allianz, .USAA, Amica, GEICO, Liberty Mutual Insurance Company, Ping An Insurance (Group) Company of China, Ltd., AXA, ASSICURAZIONI GENERALI S.P.A, State Farm Mutual Automobile Insurance Company, Allstate Insurance Company |
Analyst Review
The insurance industry plays a major role in the economic growth by providing financial protection to individuals, assets, and businesses against uncertain events. Hence, the business of insurance has become a massive contributor toward the development of a country. Fire insurance is a cover to compensate for the loss consequent upon destruction by fire. Fire insurance providers are looking forward to implementing advanced technologies such as artificial intelligence (AI) and machine learning to enhance products and services according to a customer.
Increase in economic strength of the developing nations such as China and India is expected to provide lucrative opportunities for the market growth. North America occupied a major share in the fire insurance market in 2019, owing to the presence of major market players such as Allstate Insurance Company and USAA. They are offering additional coverages such as replacement policy, consequential loss policy, and comprehensive policy services. Furthermore, technological advances such as machine learning block chain, AI, IoT, and others propel the growth of the market, by giving an opportunity to fire insurance companies to provide products linked to home and building contents along with the liability coverage. Moreover, emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities during the forecast period. The global players focus on product development to increase their geographical presence, owing to increase in competition among local vendors, in terms of features, quality, and price.
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