What Factors Propelled The Growth Of The Disability Insurance Market In The Past?
The disability insurance market has seen considerable growth due to a variety of factors.
•The market size of disability insurance has seen a swift expansion over the recent years. This growth is anticipated to increase from $4.11 billion in 2024 to $4.58 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 11.3%.
Factors such as shifts in workforce dynamics, legislative amendments, heightened awareness, employer benefits schemes, and soaring health care costs and risks were instrumental in driving the growth during the historical period.
What Is The Projected Growth And Market Size For The Disability Insurance Sector?
The disability insurance market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of disability insurance is anticipated to experience swift expansion in the coming years, projected to reach "7.11 billion dollars by 2029 with a compound annual growth rate (CAGR) of 11.6%.
The growth over the forecast period could be due to elements like emphasis on employee health, mounting health care worries, adjustable work settings, worldwide economic patterns, and the personalization of coverage. Key trends in the forecast period encompass enhancement in claim administration, heightened consciousness and instruction, evolving pricing models, widening of income safeguard services, and focus on adhering to regulations.
What Are The Core Factors Supporting Growth In The Disability Insurance Market?
The disability insurance market is experiencing a boost due to the rising number of insurance claims. An insurance claim essentially serves as a formal appeal to an insurance provider for a payout on losses covered under an insurance policy. Such insurance policies protect against disastrous injuries or sicknesses that may leave an individual unemployed. They also offer protection against severe health conditions like heart disease and cancer. Therefore, the rise in insurance claims is seen to accelerate the growth of the disability insurance market. A case in point, a UK-based research institution, the Institute for Fiscal Studies, recorded an increase in the number of working-age individuals commencing disability insurance claims. The number grew from 15,000 in 2021 to 30,000 in 2022 as per a December 2022 article. Consequently, the rise in insurance claims is predicted to enhance the progress of the disability insurance market.
What Are The Major Segments Within The Global Disability Insurance Market?
The disability insurance market covered in this report is segmented –
1) By Insurance Type: Employer Supplied Disability Insurance, Individual Disability Insurance, High Limit Disability Insurance, Business Overhead Expense Disability Insurance, Other Insurance Types
2) By Coverage Type: Short Term Disability Insurance, Long Term Disability Insurance
3) By End User: Government, Enterprise, Individual
Subsegments:
1) By Employer Supplied Disability Insurance: Short-Term Disability Insurance, Long-Term Disability Insurance
2) By Individual Disability Insurance: Own-Occupation Disability Insurance, Any-Occupation Disability Insurance, High Limit Disability Insurance
3) By High Limit Disability Insurance: Individual High Limit Policies, Business High Limit Policies
4) By Business Overhead Expense Disability Insurance: General Business Overhead Policies, Specific Expense Coverage Policies
5) By Other Insurance Types: Group Disability Insurance, Government-Sponsored Disability Insurance, Critical Illness Insurance
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Which Trends Are Expected To Transform The Disability Insurance Market?
The main trend catching attention in the disability insurance market is technological innovation. Leading firms in the disability insurance market are concentrating on incorporating new technologies to automate insurance claims. For example, in February 2022, FastTrack, a technology provider for life and disability insurance based in the US, introduced a new PTD Auto-Recertification Solution. This novel solution allows carriers to utilize trigger questions on digital claimant statements and execute low-code/no-code implementation processes. Notably, the service demands minimal or no IT support from carriers during the setup process.
Who Are the Key Players in the Disability Insurance Market?
Major companies operating in the disability insurance market include:
• Aegon N.V.
• Assurity Life Insurance Company
• Allianz SE
• Assicurazioni Generali S.p.A
• Aviva plc
• Munich Re
• Zurich Insurance Group
• Nippon Life Insurance Company
• Gerber Life Insurance Company
• MetLife Services and Solutions LLC
• Ping An Insurance (Group) Company of China Ltd.
• Guardian Life Insurance Company of America
• Illinois Mutual Life Insurance Company
• Petersen International Underwriters (PIU)
• Massachusetts Mutual Life Insurance Company
• Mutual of Omaha Insurance Company
• China Life Insurance (Group) Company
• Sumitomo Life Insurance Company
• Dai-ichi Life Holdings Inc.
• American International Group Inc.
• State Farm Mutual Automobile Insurance Company
• Aflac Incorporated
• American International Assurance Group Limited
• The Hartford Financial Services Group Inc.
• Unum Group
• Prudential Financial Inc.
• StanCorp Financial Group Inc.
• The Guardian Life Insurance Company of America
• Reliance Standard Life Insurance Company
• Principal Financial Group Inc.
What Is The Most Dominant Region In The Disability Insurance Market?
North America was the largest region in the global disability insurance market in 2024. The regions covered in the disability insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
