Umbrella Insurance Market Expected to Reach $170.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Umbrella Insurance Market," The umbrella insurance market was valued at $72.5 billion in 2021, and is estimated to reach $170.7 billion by 2031, growing at a CAGR of 9.2% from 2022 to 2031.

Umbrella insurance is a type of casualty insurance created to protect customers from fateful liability claims that may exceed the policy limits of their primary commercial general liability coverage under a conventional business insurance policy, business auto policy, and other business insurance solutions. It is a cost-effective strategy to considerably raise liability limits to protect against fateful claims in an uncertain world.

Furthermore, major market players are undertaking various strategies to increase the competition and offer enhanced services to their customers. For instance, In February 2021, Umbrella Network announced a partnership with Bridge Mutual, a decentralized peer-to-peer discretionary coverage platform for digital assets. Through the partnership, Umbrella Network will provide secure and scalable price feed data to Bridge Mutual’s platform. With the help of this partnership, the companies delivered more personal approach to umbrella insurance that build customer and bank relationship, which provided a strategic advantage to the company and the umbrella insurance market size.

On the basis of distribution channel, the insurance agents and brokers segment attained the highest market share in 2021. This is attributed to the fact that insurance agents and brokers are investing in digital technologies to provide assistance online and increasing sales and margins. Moreover, the process of converting information into digital formats is known as digitalization. This includes providing agents and brokers with knowledge and techniques in digital formats via insurance websites, digital distribution channels, and website interactions.

On the basis of region, North America attained highest growth in 2021 owing to increased frequency and increased cost of each natural disaster which results in insurance carriers paying out money in claims. Furthermore, various small business owners have gained awareness of this insurance policy, with rise in security concerns. Also, the demand for umbrella insurance market has grown in North America, due to massive increase in natural hazards and loss by theft in developing countries.

COVID-19 had a positive impact on the umbrella insurance market growth. Rapid adoption of digitalization in the insurance sector during the pandemic helped to grow the umbrella policy market. In addition, AI in umbrella insurance solutions possesses extreme capabilities to reduce claim settlements time and operational costs. Furthermore, in the approaching years, it is anticipated that this aspect will present the umbrella liability insurance industry with numerous, very lucrative prospects.

Key Findings of the Study

• By coverage, the bodily segment led the umbrella insurance industry growth in terms of revenue in 2021.
• By end user, the personal segment accounted for the highest umbrella insurance market share in 2021.
• By region, the North America segment accounted for the highest umbrella insurance market share in 2021

The report analyzes the profiles of key players operating in the umbrella insurance market analysis such as CAN, GEICO, Insureon, NerdWallet, Nationwide, Progressive Casualty Insurance Company, Tata AIG General Insurance Company Limited, The Hartford and Travelers. These players have adopted various strategies to increase their market penetration and strengthen their position in the umbrella insurance market trends.