Unemployment insurance (UI), also known as unemployment benefits, is a type of state-funded insurance that pays out money every week for individuals losing their jobs. To avail the benefits from unemployment insurance, workers must comply with all work and wage requirements set by the respective countries globally. State governments across several countries are primarily responsible for disbursing the benefits, which are funded by payroll taxes. Therefore, lower employment during the lockdown and huge loss of income among consumers is expected to boost the unemployment insurance market in the near future.
"The Global unemployment insurance market is segmented on the basis of Type, Distribution Channel and region. Based on type, the market is divided into Structural Unemployment, Cyclical Unemployment, Frictional Unemployment. In terms of Distribution Channel, the market is categorized into Agents/Brokers, Direct Response, Banks. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).
COVID-19 Scenario Analysis
- COVID-19, a disease caused by a novel coronavirus, was declared a pandemic by the World Health Organization (WHO) on March 11, 2020. Several businesses were shut down, which therefore resulted in massive job losses.
- Moreover, the pandemic has harmed several countries' ability to provide unemployment insurance (UI) to millions of workers, which further accelerated the demand for unemployment insurance during the global health crisis.
Top Impacting Factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis:
The protection offered to workers against the risk of job loss and joint initiatives by state governments and central government is driving the market growth. However, the presence of a large informal sector in emerging economies is expected to hamper the market. Contrarily, the rise in the adoption of unemployment insurance schemes with the employment protection legislation (EPL) systems and the increase in the presence of online insurance can be seen as opportunities for the market.
The unemployment insurance market trends are as follows:
Presence of a Large Informal Sector:
Generally, in developing economies, the informal workers are unprotected against such negative shocks as ill-health, but for certain groups, there can be scarce opportunities to enter the formal sector. Informal employment is associated with many negative outcomes, such as tax evasion, corruption, illegal activities, low investment rates, misallocated resources, and uninsured workers.
The Rise in Adoption of Advanced Technologies:
Insurance businesses have increasingly adopted & implemented artificial intelligence, internet-of-things and blockchain technologies. These technologies aid in the addition of advanced capabilities such as easy accessibility and transparency to insurance claims and recording, which improves market accuracy. For instance, Tavant Technologies, a digital products & solutions company, has developed a blockchain-based digital solution that maximizes the usage of data-driven processes for the claim cycle. Therefore, the rise in the adoption of advanced technologies is expected to foster this unemployment insurance market in the upcoming years.
Key Benefits of the Report:
- This study presents an analytical depiction of the unemployment insurance market size along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with a detailed analysis of the unemployment insurance market share.
- The current market is quantitatively analyzed to highlight the unemployment insurance market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed market analysis depending on the present and future competitive intensity of the unemployment insurance market analysis.
Questions Answered in the Unemployment Insurance Market Research Report:
- Which are the leading players active in the unemployment insurance market?
- What would be the detailed impact of COVID-19 on the unemployment insurance market forecast?
- What are current trends that would influence the market in the next few years?
- What are the driving factors, restraints, and opportunities of the unemployment insurance market?
- What are the projections for the future that would help in taking further strategic steps?
Unemployment Insurance Market Report Highlights
| Aspects | Details |
 By Type |
|
 By Distribution Channel |
|
 By Region |
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 Key Market Players | Unemployment Tracker, Unemployment Insurance Services., PrestigePEO, Axcet HR Solutions, UC Alternative, G&A Partners, Flex HR, Employers Edge, LLC, Equifax Workforce Solutions, Personnel Planners |
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