Specialty insurance is meant to cover & protect businesses with non-traditional needs and negligence claims. This insurance can be obtained for events or items that are considered unique and are hardly covered by the standard insurance policies. Healthcare, environmental, construction, energy, and environmental industries highly demand for specialty insurance. Moreover, a type of professional liability, errors & omissions (E&O) insurance is considered as a standard type of specialty insurance plan.
COVID-19 Impact on Specialty insurance Market
The outbreak of COVID-19 across the globe has unfavorably impacted the global specialty insurance market growth. The negative specialty insurance market growth is majorly due to the closing down of various insurance brokerage firms in the developing countries like Japan and India due to a drop-in the client demand for insurance. Although the business of insurance market has increased dramatically in the recent years, but it has been estimated that it might face an uncertain fall in 2021 due to the COVID-19 pandemic. This is majorly owing to the increase in insurance prices and the implementation of lockdown by government agencies in most countries around the world.
Specialty insurance Market Trends and Developments
The companies operating in the global industry are adopting several growth strategies and business tactics such as partnerships, collaboration, business expansion, and product launches to obtain a leading position in the global industry, which is predicted to drive the global specialty insurance market growth in the upcoming years.
For instance, in July 2020, Munich Re Specialty Insurance, the leading provider of extensive, casualty, and specialty property insurance solutions to customers, announced the launch of a new Miscellaneous Professional Liability (MPL) solution for commercial, non-specialist businesses. The MPL covers both defense and liability costs from claims that allege omissions or errors in the rendering of professional services.
In October 2020, ReAlign Insurance, an insurance holding company, organized to build a vertically aligned, specialty program insurance platform, announced the launch of Summit Specialty Insurance in Nebraska. The Summit Specialty has received the needed regulatory approvals to operate as a surplus lines insure. The new carrier is now working to achieve authorization to begin underwriting activity in markets across the country.
In October 2021, Mosaic Insurance, the Bermuda-based specialty insurance startup, and DXC Technology, the American multinational corporation, entered into a strategic partnership to launch a Specialty Insurance technology platform, combining of Mosiac’s IP & expertise, and powered by DXC’s technology services. This platform can increase the speed at which specialty insurance is underwritten and sold.
Forecast Analysis of Global Market
The global specialty insurance market is projected to witness an exponential growth over the forecast period, owing to the presence of developing nations, particularly increasing economies like India, Australia, China, South Korea, and Singapore are projected to open up new growth opportunities for the market by 2028. Conversely, the lack of information and misconceptions related to specialty insurance are expected to hamper the market growth in the projected timeframe.
The growing demand for specialized expertise and constant technological advancements are the significant factors and specialty insurance market trends estimated to bolster the growth of the global market in the coming future. According to a latest report published by Research Dive, the global specialty insurance market is expected to garner $243.70 billion during the forecast period (2021-2028). Regionally, the Asia-Pacific specialty insurance market is estimated to observe the rapid growth by 2028, owing to the due to the presence of the presence of various developing economies and financial centers such as Singapore, Hong Kong, and India.
The key players functioning in the global market include Zurich, AXA, Tokio Marine HCC, American International Group Inc., Assicurazioni Generali S.P.A., Allianz, PICC, Chubb, Berkshire Hathaway Inc., and Munich Re.