Disability Insurance Market Expected to Reach $9.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Disability Insurance Market," The disability insurance market was valued at $3.3 billion in 2021, and is estimated to reach $9.2 billion by 2031, growing at a CAGR of 11.2% from 2022 to 2031.

Standard disability insurance provides risk coverage for the lost income due to failure to work in case of any permanent or temporary disability. This kind of insurance helps in providing a part of the lost income along with the medical expenses, if the policyholder happens to meet with an accident that led to disability. It covers sick leave and offers disability benefits for short and long-term periods.

Furthermore, the key factor driving the disability insurance market trends rising awareness about the benefits of social security disability insurance policies and tax benefits under various sections of the income tax act is boosting the growth of the global disability insurance market. In addition, development of new offers and schemes by insurance companies is positively impacts growth of the disability insurance market. However, lack of awareness among the customers is hampering the disability insurance market growth. On the contrary, increasing government support for medical and health insurance is expected to offer remunerative opportunities for expansion during the disability insurance market forecast.

Depending on coverage type, the long term disability insurance segment holds the largest disability insurance market share as enterprises usually provide this type of insurance to their employees. However, the short term disability insurance segment is expected to grow at the highest rate during the forecast period, owing to increase in the number of accidents that only effects for short period of time and is not permanent.

Region-wise, the disability insurance market size was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to expanding investments to provide income to the disabled people. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to large population countries such as India and China and elderly dominated countries like Japan.

The COVID-19 pandemic is expected to positively impact the overall economy of the disability insurance market, owing to surge in need for analyzing large data sets of genuine claims and to reduce risks and costs related to frauds and achieve superior results. For instance, according to a survey of Australian bureau of statistics in June 2020, more than 29% people with disability experienced high or very high levels of psychological distress as compared with 17% of people without disability. In addition, technologies such as online insurance process and automate claim process, is providing cost-saving opportunities, thus propelling the growth of the market. This is attributed to increasing in attention toward data to help insurers to find out the future performance of the firm to take corrective measures, which, in turn, is contributing toward the growth of the market. Furthermore, algorithms used for getting meaningful insights from real-time and historical data are helping insurance companies in handling various critical issues related to customer insights during COVID-19 pandemic, which is driving the growth of the disability insurance industry.

KEY FINDINGS OF THE STUDY

• By insurance type, the employer supplied disability insurance segment accounted for the largest disability insurance market share in 2021.
• Region wise, North America generated highest revenue in 2021.
• Depending on end user, the enterprise generated the highest revenue in 2021.

The key players profiled in the disability insurance market analysis are Clearbit, Demandbase, Inc., Dun & Bradstreet Corporation, Data Axle, HG Insights, InsideView, LinkedIn Corporation, Oracle Corporation, ZoomInfo Technologies LLC, and Zoho Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the disability insurance industry.