Financial protection is a key component of universal health coverage (UHC) with an access to all needed quality health services without any financial hardship. With financial protection insurance, regular payments that replace part of income can be done if the insured person is not able to work due to an accident or illness. It pays out until the insured person retire, can start working again, die, or reach the end of the policy term. Financial protection insurance typically pays out between 50-65 percent of the insured person income if that person is unable to work.
COVID-19 Impact on Financial Protection Market
The outbreak of COVID-19 across the globe has positively impacted the global financial protection market growth. Many people experienced serious health condition and many people lost their jobs across the globe, which increased the demand for financial protection policy during the pandemic period. Besides, the COVID-19 pandemic is also responsible for several cuts in salary and workforce as various business sectors faced huge losses due to the slowing economy. Thus, most people are taking income protection plans to pay off bills and other utilities in order to sustain during the financial crisis.
Financial Protection 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 financial protection market growth in the upcoming years.
For instance, in September 2021, Bharti AXA Life Insurance, a joint venture between AXA and Bharti Enterprises, announced the launch of a single premium group protection plan, ‘Bharti AXA Life Group Credit Protection Pro.’ The plan is specifically designed by the company to provide customers with a complete solution to secure their future by providing financial protection to their families against unsettled liabilities.
In January 2022, Max Life Insurance, a leading life insurance company in India, entered into a collaboration with Policybazaar, one of India’s largest online marketplace for insurance, to empower homemakers’ financial protection with an option to get an independent term insurance policy. The ‘Max Life Smart Secure Plus Plan’ help in securing independent lives of female homemakers. The aim of the companies behind this collaboration is to address critical challenges of their customer base and enhance penetration in the largely untapped segment.
Forecast Analysis of the Global Market
The global financial protection market is projected to witness an exponential growth over the forecast period, owing to the rising adoption of latest technologies by key market players to provide income protection. Conversely, the lack of knowledge among people and the increasing costs of financial protection policies are expected to hamper the market growth in the projected timeframe.
The increasing number of unemployed people and the rapid growth in the number of several diseases such as cancer, malaria, and dengue among people worldwide are the significant factors and financial protection 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 financial protection market is expected to garner $29,381.6 million during the forecast period (2021-2028). Regionally, the Asia-Pacific market is estimated to grow at the fastest rate by 2028, owing to the increasing number of policy holders and rising number of people opting for financial protections in the region.
The key players functioning in the global market include AXA, Aon, American International Group, Inc., ABI, Marsh Ltd., Aviva, The Guardian Life Insurance Company of America, Zurich, Citizens Advice, and StanCorp Financial Group, Inc.