Home Insurance Market by Coverage (Comprehensive Coverage, Dwelling Coverage, Content Coverage, and Other Optional Coverages), End User (Landlords and Tenants), Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021-2028

Global Home Insurance Market Analysis

The global home insurance market is projected to garner $4,07,940.4 million in the 2021-2028 timeframe, growing from $2,41,006.8 million in 2020 at a healthy CAGR of 6.8%.

Market Synopsis

Growing demand of property insurance due to environmental damages to properties is anticipated to accelerate the growth of the home insurance market. 

However, lack of awareness of home insurance services is predicted to hamper the market growth.

According to the regional analysis of the market, the Asia-Pacific home insurance market is anticipated to grow at a CAGR of 11.4% by generating a revenue of $82,404 million during the review period.

Home Insurance Overview

Home insurance is a property insurance that insures an individual's house and assets in the home from natural and manmade disasters.

Impact Analysis of COVID-19 on the Global Home insurance Market

The real estate industry has witnesses a severe impact due to the restriction on construction activities which have led to a decline in demand and requirement of home insurance services during the pandemic. Global home insurance market has experienced a decline during the COVID-19 and is estimated to regain its growth during the forecast timeframe. 

The organizations around the world involved in the business of home insurance services are adopting business strategies such as acquisition and partnerships to stay relevant and gain a major market share in the home insurance sector. For instance, in June 2021 Generali Group, an Italian insurance company, made an acquisition of French multinational insurance firm AXA’s “Life & Savings and Property & Casualty” businesses in Greece, for a total cash consideration of €167 million. Such factors are expected to positively impact the global home insurance market.

Increasing Demand of Property Insurance due to Environmental Damages is Expected to Surge the Market Growth

The growing demand for insurance services related to property and casualty is expected to drive the global home insurance market. The rising events of environmental and catastrophic damages such as avalanche, earthquake, flood, forest fire, hurricane, lightning, tornado, tsunami and volcanic eruption globally has increased need for insurance of property and is aiding the growth of home insurance market.
In addition to this, "Disaster Risk Financing and Insurance (DRFI) Program" a joint initiative of the World Bank Group’s Finance, Competitiveness, and Innovation Global Practice and the Global Facility for Disaster Reduction and Recovery (GFDRR), DRFI was established in 2010 to implement comprehensive financial protection strategies. Initiatives like these are expected to improve the facilitation of home insurance services and spread awareness regarding its importance. These factors are expected to aid the growth of home insurance market

To know more about global home insurance market drivers, get in touch with our analysts here.

Lack of Awareness About the Benefits of Home Insurance Services to Restrain the Market Growth

The lack of awareness regarding the benefits of home insurance services in the rural areas and underdeveloped countries is expected to restrict the market growth. Moreover, high installments in home insurance services is a key issue that may create a negative impact on the growth of the market during the forecast period.

Prominence of Predictive Analytics in the Market to Create Massive Investment Opportunities

The implementation of technologies such as predictive analytics is expected to create new opportunities in the domain of home insurance. The utilization of predictive analytics tools is anticipated to give property insurers access to the historical data necessary to assess risk more accurately. In addition to this, the use of Internet of Things (IoT) in smart devices and greater access to their data makes it easier to contextualize policies and monitor risk in real-time. These factors are expected to open new cope of opportunities for this market.

To know more about global home insurance market opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The comprehensive coverage sub-segment is predicted to have a dominating market share in the global market and is expected to register a revenue of $2,25,160.3 million during the forecast period. These strategic alliances may bolster the growth of the segment during the forecast period. The increasing events of natural disasters such as floods, hurricanes, tornadoes, volcanic eruptions, earthquakes, tsunamis, storms and others is aiding the growth of comprehensive coverage sub-segment as it covers the damage from natural disasters. In addition to this, the comprehensive coverage insurance has advantages such as property-related lawsuits, protection from natural and manmade calamities. These factors are expected to aid in the growth of this subsegment.

The dwelling coverage sub-segment is anticipated to have the fastest market growth and generate a revenue of $77,271.6 million by 2028, growing from $ 42,895.60 million in 2020. The surge in crime incidents such as theft, vandalism and others are globally expected to increase the demand of dwelling insurance globally. The crimes related to theft and vandalism are covered in the dwelling insurance and the crime rates have grown in the underdeveloped and developing countries that are aiding the growth of dwelling coverage. These factors are expected to grow this subsegment in the forecast period

Source: Research Dive Analysis

The landlord sub-segment is anticipated to have a dominating market share in the global market to surpass $2,39,715.1 million by 2028, with an increase from $ 1,59,202.5 million in 2020. The growing population, coupled with increase in migration in cities, has led to surge in the rental property activities and aided the growth of landowner’s sector in the industry. There advantages for the property equipped with landowner’s insurance such as it protects the landowner against the financial losses resulting from natural disasters, injuries, accidents and other liability issues. Such factors are expected to boost the sub-segment in the forecast period.

The Tenants sub-segment of the global home insurance market is projected to have the fastest growth and it is projected to register a revenue of $1,60,430.3 million during the analysis timeframe and is growing with a healthy CAGR of 9.3%. The increasing demand for affordable housing services due to growing rate of urbanization globally is expected to aid the growth of this subsegment. The developing countries with large population with high economic growth rate such as China and India are envisioned to boost the growth of this subsegment due to high demand for affordable housing services for the urban population. 

Source: Research Dive Analysis

The Market for Home insurance in North America to be the Most Dominant

The North America home insurance market generated $1,21,009.5 million in 2020 and is projected to register a revenue of $1,83,328.4 million by 2028. The North America   region is affected by natural disasters such as floods, hurricanes, tornadoes, volcanic and others is   increasing the demand of insurance services in the economically developed countries such as U.S, Canada in this region. Moreover, the use of technology such as the Internet of Things (IoT) and Artificial Intelligence such as for providing highly insightful and personalized customer experiences. These factors are expected to aid in the growth of home insurance market in the North America region.

The Market for Home insurance in Asia-Pacific to be the Fastest Growing

The share of Asia-Pacific home insurance market is estimated to grow at a CAGR of 11.4% by registering a revenue of $82,404.0 million by 2028. The increased economic development and increasing per capital income in the Asia-Pacific countries such as China, India, Vietnam and others has led to improved economic standards of living coupled with greater demand for better housing services, is anticipated to aid thehome insurance market in the Asia-Pacific region.

Competitive Scenario in the Global Home insurance Market

Agreement and acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading home insurance market players are Allianz, Admiral Group Plc, American International Group, Inc., AXA, Allstate Insurance Company, Chubb, State Farm Mutual Automobile Insurance Company, Liberty Mutual Insurance, Nationwide Mutual Insurance Company, The Travelers Indemnity Company.

Porter’s Five Forces Analysis for the Global Home insurance Market:

• Bargaining Power of Suppliers: The suppliers in the home insurance market are high in number. Several companies are working on framing new insurance   policies for homeowners, the buyers have an edge over the suppliers. Thus, there is less threat from the suppliers. 
  Thus, the bargaining power suppliers is moderate.
• Bargaining Power of Buyers: Buyers have huge bargaining power; they demand best services at low prices. This increases the pressure on the home insurance test providers to offer the best service in a cost-effective way. Thus, buyers can freely choose the convenient service that best fits their preference. 
  Thus, the bargaining power of the buyers is high.
• Threat of New Entrants: Companies entering the home insurance market are adopting technological innovations such as improving the user experience and customized products to attract clients. Also, these companies are implementing various effective strategies such as offering discounts and value propositions. 
  Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: There is no alternative product for home insurance solutions. 
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including American International Group, Inc and   AXA. These companies are launching their value-added services in the international market and strengthening the footprint worldwide. 
  Therefore, competitive rivalry in the market is high.