According to a recent report published by Allied Market Research, titled, Home Insurance Market by Coverage and End User: Opportunity Analysis and Industry Forecast, 2020-2027,”
The global home insurance market size was valued at $225.42 billion in 2019, and is projected to reach $395.04 billion by 2027, growing at a CAGR of 7.3% from 2020 to 2027
The global home insurance market is experiencing significant growth, and is anticipated to grow considerably in the next few years. Home insurance provides financial protection to home in the event of a disaster or accident. Homeowner’s insurance policies are called package policies. This means that this policy not only provides coverage against the damage happened to property, but also covers liability protection.
Around 60% of the Indian subcontinent landmass is vulnerable to earthquakes and other natural catastrophes, out of which 38 Indian cities are lying in the high-risk seismic zone. Furthermore, majority of residential and commercial premises in India, do not comply with earthquake and flood resistance safety guidelines. These aspects make them highly vulnerable to natural and man-made perils. All these factors create huge potential for the growth of the home insurance market share in Asia-Pacific region. In addition, The Real Estate Regulatory Authority in India has taken initiative to create awareness of home insurance among consumers through IRDAI’s Campaigns. This resulted into 29.7% in rural and 36.6% growth in urban areas.
Growth in global number of households, increase in initiatives by government, rise in number of accidents, and surge in man-made disasters boost the adoption of home insurance in recent years. However, lack of awareness regarding home insurance policy is expected to hinder the growth of the home insurance market. On the contrary, untapped potential of emerging economies and new technological developments in the home insurance industry are expected to present major opportunities for the home insurance market growth during the forecast period.
Region wise, the home insurance market was dominated by North America in 2019, and is expected to retain its position during the forecast period. The major factor that drives the growth of the home insurance market trends in this region is evolution of natural disasters and increasingly sophisticated catastrophe events. However, Asia-Pacific is expected to witness significant growth rate during the forecast period, owing to increase in disposable income of the middle-class population and rise in demand for insurance covering natural hazards and industrial developments.
There is an increase in the spread of the new coronavirus across the world. This is anticipated to have a moderate impact on home insurance industry. COVID-19 made majority of people to understand the importance of home insurance in their lives, as it is a financial readymade solution for unforeseen situations. All these factors provide an immense opportunity to home insurance providers to grow in these unprecedented crises, as many people spend more time at home, and want to replace financial challenges with better home insurance coverage that will help save money.
Key Findings Of The Study
- On the basis of coverage, the comprehensive coverage segment generated the highest revenue in 2019.
- Based on end user, the landlords segment accounted for the highest share in 2019.
- By region, Asia-Pacific is anticipated to exhibit substantial growth during the forecast period.
The key players profiled in the home insurance market are Allstate Insurance Company, ALLIANZ GROUP, ADMIRAL, AXA, American International Group, Inc., Chubb, Liberty Mutual Insurance, People’s Insurance Company of China Group, State Farm Mutual Automobile Insurance, and Zurich Insurance Co. Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.