How Is The Global On-Demand Insurance Market defined?
On-demand insurance is a flexible insurance model that allows consumers to purchase coverage instantly and for specific periods or events through digital platforms. This insurance is used to provide tailored, short-term coverage for various needs, offering convenience and cost efficiency to users.
On-Demand Insurance Global Market Report 2024 provides data on the global on-demand insurance market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The on-demand insurance market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global On-Demand Insurance Market Size Expected To Change, And What Are The Growth Rate Projections?
The on-demand insurance market has expanded rapidly, growing from $4.79 billion in 2023 to $5.50 billion in 2024, at a CAGR of 14.8%. Growth has been driven by increased smartphone and internet penetration, a shift from traditional to digital insurance channels, consumer demand for convenience, regulatory changes favoring digital insurance, and rising awareness of digital financial services. The market is projected to reach $9.59 billion by 2028, at a CAGR of 14.9%, spurred by the adoption of big data analytics, demand for personalized insurance products, growth of digital-only insurance providers, increased investment in insurtech startups, and the popularity of peer-to-peer insurance models. Trends include the use of AI-driven chatbots for customer service, blockchain integration for transparency, market expansion, the rise of cybersecurity insurance, and collaborations between traditional insurers and tech companies.
Which Drivers Are Accelerating Growth In The On-Demand Insurance Market?
The rising adoption of digital platforms is expected to stimulate growth in the on-demand insurance market. Digital platforms facilitate various services, including purchasing, managing, and customizing insurance policies, catering to consumers’ demand for convenience and attractive pricing. These platforms simplify the insurance process, enhance customer confidence, and offer competitive pricing. For example, according to data from the US Census Bureau, e-commerce sales in the first quarter of 2024 increased by 8.6% compared to the same period in 2023, with e-commerce accounting for 15.9% of total retail sales. Consequently, the growing adoption of digital platforms is driving the on-demand insurance market.
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What Are The Core Segments Of The Global On-Demand Insurance Market?
The on-demand insurance market covered in this report is segmented –
1) By Coverage: Car Insurance, Home Appliances Insurance, Entertainment Insurance, Contractor Insurance, Electronic Equipment Insurance, Other Coverages
2) By Insurance: General Insurance, Life Insurance, Cybersecurity Insurance, Other Insurances
3) By End-User: Individuals, Business
Which Emerging Trends Are Reshaping The On-Demand Insurance Market Size?
In the on-demand insurance market, companies are introducing mobile telematics-based products to offer personalized coverage options. Mobile telematics uses real-time driving data to assess risk, provide usage-based premiums, and promote safe driving. In July 2023, Zuno General Insurance, an Indian insurer, launched SWITCH, a flexible motor insurance solution. By leveraging telematics and real-time data, this app-based product calculates premiums based on driving behavior and activates coverage as needed, providing a user-friendly, data-driven alternative to traditional motor insurance.
What Is The Largest Region In The On-Demand Insurance Market?
North America was the largest region in the on-demand insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the on-demand insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
