Global SреÑіаltу InÑ•urаnÑе Market Overview
The key driver impacting the sреÑіаltу inÑ•urаnÑе market is the growing concerns related to property & casualty loss due to natural calamity and weakening profitability of specialty carrier in case of bad luck is surging people to take property & casualty insurance policies. For instance, According to the Insurance Information Institute, around 61 catastrophes occurred in the U.S. in 2019, as compared to 55 in 2018. Property/casualty (P/C) insurers paid out over $24.4 billion in property losses linked to catastrophes in 2019. Also, about one in 20 insured homes has a claim every year. Homeowners' claims linked with wind or hail are the most recurrent; the costliest are related to fire and lightning in U.S. Net premiums on paper for the sector totaled $637.7 billion in 2019.The mean homeowner's insurance premium increased by 1.6 percent in 2017, following a 1.6 percent rise in 2016. There are around seven million small businesses in the U.S. which range from construction industries to grocery stores to home-based businesses. Moreover, the growing number of starts ups entering the market, such as Friendsurance, Lemonade, and Policygenius have attracted large investments in the insurance sector is also estimated to be significant factor that adds growth to the market.
According to Value Market Research, the global sреÑіаltу inÑ•urаnÑе market was valued at around USD 240 million in 2019 and is estimated to grow at a CAGR of about 5.75% during the forecast period of 2020 to 2026.
The broader technological developments and innovations strengthen many of InsurTech developments which is likely to improve market demand in the forecast period. For instance, the advancement in technology such as development of Mobile technology and applications (apps), Artificial intelligence (AI), algorithms and Robo-advice, Smart contracts, Blockchain /distributed ledgers technology (DLT), etc. However, the lack of guidance and awareness may hamper the global sреÑіаltу inÑ•urаnÑе industry in the long run. Also, the Covid 19 pandemic outbreak has reduced trade, affected businesses, and gives rise to unemployment, which negatively impacts the market. The current industry trends, such as technology advancement, better distribution channels, and growing awareness about insurance, are expected to provide beneficial market opportunities for the market players.
The sреÑіаltу inÑ•urаnÑе market is vast, with a large number of local and global players. The key leaders follow several strategies to improve their market position, such as mergers, acquisitions, expansions, product innovations, and extending product portfolio, to boost their market share globally. For instance, In March 2020, Unity Technologies had acquired Artomatix. It is an Ireland-based software company that utilizes AI and neural networks to rationalize 3D artistic workflows. The important players included Allianz, Argo Group, UnitedHealthcare, AXA, AIG, ACEandChubb, Tokio Marine, China Life, XL Group, PICC, Renaissance Re Holdings, Munich Re Selective Insurance, Hudson, Zurich, and others.
In this research report, the sреÑіаltу inÑ•urаnÑе market is segmented by type covers, application, and region.
Analysis by Type Covers:
By type, the report is categorized into life insurance and property insurance. Property inÑ•urаnÑе dominate the type segment in 2019 with a maximum market share. The growing incidence of home and property loss due to fire, natural, and human-made disasters is boosting demand for specialty insurance in the coming years. Moreover, the rising awareness related to insurance and claims among consumers, thus driving the property insurance segment in the forecast period.
Analysis by Applications:
By applications, the report is categorized into personal and commercial. The commercial dominate the application segment in 2019 with a maximum market share. It is due to mounting demand for sреÑіаltу inÑ•urаnÑеs across construction, environmental, healthcare, and energy industries. Moreover, PC gamers have a broad range of gaming titles at their disposal. The benefits associated with specialty insurance, such as competitive pricing, more flexible Underwriting, and protection against lawsuits, are enhancing demand for specialty insurance products by commercial consumers, thus contributing to the commercial segment's growth in the forecast period.
Analysis by Region:
In the regional outlook of the global sреÑіаltу inÑ•urаnÑе market, the Europe and North America region dominates with a maximum market share in 2019. It is due to high awareness of insurance products and the presence of a large number of industries that demand specialty insurance coverage. Moreover, the many regions of North America and Europe are prone to natural disasters such as cyclones; hurricanes, etc. are certain factors driving the market in the forecast period. The Asia Pacific is estimated to grow at a considerable rate due to greater awareness of products, increasing income levels, and improved government-backed penetration.
Market Segmentation covered in the Report:
By Type Covers:
- Life Insurance
- Property Insurance
By Applications
By Region
- North America
- Europe
- the Asia Pacific
- Latin America
- The Middle East and Africa
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