Global Home Insurance Market Projected to Grow at Over 7% CAGR
The global home insurance market, valued at $233 billion in 2023, is expected to expand at a compound annual growth rate (CAGR) of more than 7% from 2024 to 2032, according to a report by Global Market Insights. This growth is primarily fueled by escalating property values.
As homeowners face rising property prices, there is a growing awareness of the importance of safeguarding assets against various risks, including natural disasters, theft, and other unforeseen events. Additionally, government initiatives aimed at enhancing insurance awareness have further encouraged homeowners to consider obtaining coverage.
The COVID-19 pandemic has also had a significant impact on the home insurance landscape, resulting in a decrease in property transactions and a subsequent slowdown in new policy acquisitions. Economic uncertainties during this period have led some homeowners to reevaluate their spending priorities, which may have dampened demand for home insurance.
In response to these challenges, insurers have adapted their approaches by modifying underwriting guidelines, providing flexible payment options, and leveraging technology to facilitate virtual interactions with policyholders.
The growing preference for customized insurance products is anticipated to propel future market growth. Insurers are increasingly offering tailored coverage options to cater to the specific needs of homeowners.
In 2023, dwelling coverage, which protects against property damage from events such as fires and storms, generated $75 billion in revenue. The demand for this segment has been bolstered by rising home values and increased construction activities. Meanwhile, the landlord insurance segment contributed $156 billion to the market, driven by urban migration and the corresponding need for rental properties. Landlords are increasingly seeking coverage for liability claims and property damage to safeguard their investments.
With rising investments in new properties, the demand for flexible and scalable home insurance solutions is expected to increase, positioning the market for substantial growth in the coming years.
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