The global income protection insurance market, valued at $43.15 billion in 2024, is projected to grow at a compound annual growth rate (CAGR) of 3% between 2025 and 2033, according to Market Data Forecast. By 2033, the market is expected to hit $56.30 billion, up from $44.44 billion in 2025.
Asia Pacific (APAC) is poised to lead this growth, fueled by technological advancements, an expanding middle class, and an increasing number of government insurance initiatives. The region’s income protection market stands to benefit from stable financing and favorable policy frameworks, positioning it as a key driver of global market expansion.
However, despite the positive long-term outlook, the global income protection market has recently experienced a contraction. New business premiums dropped by 10.1%, and the number of contracts declined by 1.7%. Income protection insurance offers a safety net for individuals by providing up to 85% of pre-tax income for a specified period if the insured becomes partially or fully disabled and is unable to work. The benefits are calculated based on annual earnings from the 12 months prior to the illness or injury.
Demand for these products has risen in recent years, driven by increased financial awareness following the COVID-19 pandemic, as well as growing concerns over income loss due to illness or disability. Additionally, the aging workforce and rising disability levels in regions such as Europe are contributing to the market’s expansion.
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