According to a recent report published by Allied Market Research, titled, “Financial protection Market by Type, Policy Coverage, and End User: Global Opportunity Analysis and Industry Forecast, 2021-2030,” the global financial protection market size was valued at $53.34 billion in 2020, and is projected to reach $77.43 billion by 2030, growing at a CAGR of 3.9% from 2021 to 2030.
Mandatory provision of financial protection in the private & public sector employees and surge in prevalence of chronic diseases, such as cardiovascular disease, cancer, and diabetes are the key factors that boost the global financial protection market growth. However, limitation of availability of income protection policies and increase in financial protection premium cost restrict growth of the market. On the contrary, development of advanced technology in the financial sector and increase in unemployment rate are expected to create an immense opportunity for the market in the coming years.
Moreover, the COVID-19 pandemic has further increased demand for financial protection plans as there is rise in job cuts, which leads to unemployment. In addition, longer hospitalization and quarantine periods results in absence of employees from work and thus, puts financial pressure on their families. Therefore, to ensure financial protection and receive income regularly, customers are opting for financial protection plans. Furthermore, various government initiatives are undertaken to ensure that employees get regular payment despite their health conditions. For instance, in Canada, the government is extending its Worker Income Protection Benefit program, which provides paid sick days, until July 31, 2022 to continue keeping workers safe and ensure they do not lose pay if they need to miss work for reasons related to COVID-19. Employees can continue to access this paid leave to get tested, vaccinated, self-isolate, or care for a family member. Extending the COVID-19 paid leave program will help more workers take leaves to get their vaccination shots and help more parents take time to get their children vaccinated. In addition, the program has helped over 235,000 people stay safe without worrying about losing pay.
On the basis of policy coverage, the mortgage payment protection segment in financial protection market is expected to grow at the fastest rate during the forecast period. Mortgage payment protection allows the insured person to continue paying off their mortgage if they are no longer receiving a secure income. In addition, mortgage payment protection can help insured person families to cover their mortgage under certain circumstances through which the insured person can avoid foreclosure if they can no longer work to pay their mortgage.
By region, the global financial protection market share is being dominated by Europe in 2021, and is expected to maintain this trend during the forecast period. Furthermore, amidst the impact of the COVID-19 pandemic on the economy and the most vulnerable citizens, debate around minimum income schemes (MIS), universal basic income (UBI), and adequate measures to prevent social exclusion has gained renewed attention at national and regional levels, therefore, income protection plans have been adopted by governments to provide financial assistance to people in this region.
The COVID-19 outbreak has positively impacted the financial protection market size since the demand for financial protection among employees have increased owing to the growing health concerns which results to hospitalization further leading to absence from office. Moreover, employers are giving financial protection plans to their employees to ensure the employee gets enough time to recover without having to worry about getting payment cuts because of absence.
Key findings of the study
- By type, the long-term financial protection segment led the financial protection market in terms of revenue in 2020.
- By policy coverage, the payment protection segment accounted for the highest financial protection market share in 2020.
- By region, Europe generated the highest revenue in 2020.
The key players profiled in the financial protection market analysis are AXA, ABI, American International Group, Inc., Aviva, Aon, Citizens Advice, Marsh Ltd., StanCorp Financial Group, Inc., The Guardian Life Insurance Company of America, and Zurich. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.