Home Insurance Market

Home Insurance Market Size (2023 - 2028)

The worldwide house insurance market is expected to grow at a CAGR of 7.3%, from $225.42 billion in 2022 to $395.04 billion in 2028. Home insurance is a kind of property insurance that financially protects a person against all losses and damages to their home. It's referred to as homeowner's insurance, household insurance, and private property insurance. Home insurance is a package policy that covers both property damage and the policyholder's liability (or legal duty) for injuries and property damage. Theft, vandalism, and damage caused by family pets are all covered. However, some natural disasters are not covered by a standard homeowner's insurance policy. Floods, earthquakes, and neglected property are just a few instances.

Market Drivers

The worldwide home insurance industry is predicted to be driven by rising demand for property and liability insurance services. The expanding number of environmental and catastrophic occurrences throughout the world, such as avalanches, earthquakes, floods, forest fires, hurricanes, lightning, tornadoes, tsunamis, and volcanic eruptions, has raised the demand for property insurance and aided the growth of the house insurance industry.

In the realm of home insurance, the implementation of technology such as predictive analytics is likely to open up new possibilities. Property insurers should be able to get the historical data they need to estimate risk more correctly if they use predictive analytics techniques. Furthermore, the usage of the Internet of Things (IoT) in smart devices, as well as increased access to their data, makes it easier to contextualise policies and monitor risk in real-time. These characteristics are projected to provide this industry with a slew of new prospects.

Market Restraints

The market's growth is expected to be restrained by a lack of understanding about the benefits of house insurance services in rural areas and developing countries. Furthermore, expensive instalments in house insurance services are a major issue that could stifle the market's expansion during the projection period.

HOME INSURANCE MARKET REPORT COVERAGE:

Market Segmentation

Home Insurance Market - By Coverage:

• Comprehensive

• Dwelling

• Content

• Other Optional Coverages

During the projection period, the comprehensive coverage sub-segment is estimated to have a dominant market share in the global market, with sales of $225 billion. During the projection year, these strategic relationships could help the market grow. Floods, hurricanes, tornadoes, volcanic eruptions, earthquakes, tsunamis, storms, and other natural catastrophes are contributing to the rise of the comprehensive coverage sub-segment, which includes damage from natural disasters. Furthermore, comprehensive coverage insurance provides benefits such as protection from property-related disputes and natural and man-made disasters. 

The dwelling coverage sub-segment is expected to expand at the greatest rate, reaching $77.27 billion in sales by 2026, up from $42.89 billion in 2020. The global demand for dwelling insurance is predicted to rise as a result of an increase in crime incidences such as theft, vandalism, and others. Theft and vandalism are covered by dwelling insurance, and crime rates have increased in impoverished and emerging countries, assisting in the expansion of dwelling coverage.

Home Insurance Market - By End-User:

• Landlords

• Tenants

The landlord sub-segment is expected to hold a dominant market position in the global market by 2026, with a value of $238.71 billion, up from $159.20 billion in 2020. The expanding population, along with a rise in urban migration, has resulted in a boom in rental property activity, assisting the growth of the landowner's sector in the business. There are benefits to having a landowner's insurance on a property, such as protecting the landowner against financial losses caused by natural catastrophes, injuries, accidents, and other liability issues.

The Tenants sub-segment of the global home insurance market is expected to develop the fastest, with revenue of $160.43 billion expected over the forecast period and a high CAGR of 9.3%. The increased need for cheap housing services as a result of global urbanisation is projected to help this subsegment flourish. The expansion of this subsegment is expected to be boosted by developing countries with huge populations and high economic growth rates, such as China and India, because of increased demand for inexpensive housing services for the urban population.

Regional Analysis

By 2026, the North American house insurance industry is expected to earn $183.33 billion in revenue, up from $121 billion in 2020. Natural disasters in the North American region, such as floods, hurricanes, tornadoes, volcanic eruptions, and others, are increasing the demand for insurance services in the region's economically developed countries, such as the United States and Canada. Furthermore, the use of technology such as the Internet of Things (IoT) and Artificial Intelligence (AI) for offering highly tailored and insightful consumer experiences.

By 2026, the Asia-Pacific house insurance market is expected to develop at a CAGR of 11.4 per cent, generating $82.4 billion in sales. Increased economic development and rising per capita income in Asia-Pacific countries such as China, India, Vietnam, and others has resulted in higher economic standards of living, as well as increased demand for better housing services, which is expected to benefit the Asia-Pacific home insurance market.

Market Leader

Allianz is the biggest player in the global home insurance market.

Key Players

1. Admiral Group (Wales)
2. American International Group (US)
3. Allstate Insurance Company (US)
4. State Farm (US)
5. Liberty Mutual Insurance Company (US)
6. Nationwide Mutual Insurance Company (US)
7. The Travelers Companies (US)
8. AXA (France)
9. Chubb Ltd (Switzerland)
10. PICC (China)

Recent Developments

• In Austria, Allianz Capital Partners is investing approximately a billion euros in the rollout of fibre-optic networks. The investment business has reached a deal with Oesterreichische Glasfaser-Infrastrukturgesellschaft (öGIG) for the funding of the fibre-to-the-home project on behalf of Allianz insurance firms and the Allianz European Infrastructure Fund. 
• AXA has agreed to buy back its shares for a maximum of 1.4 billion euros through a share repurchase agreement with an investment services company. Beginning November 29, 2021, and ending no later than April 27, 2022, shares will be bought back. 
• The Allstate Corporation announced that it has completed the sale of Allstate Life Insurance Company (ALIC) and certain subsidiaries to Blackstone-managed entities for a total of $4 billion, which includes Blackstone's $2.8 billion purchase price as well as statutory surplus increases since March 31, 2020. 
• Liberty Mutual Insurance plans to shift its more than 2,200 exclusive insurance agents across the country to a new agency it is launching. The global insurer is launching Comparion, a digital agency that will offer auto, home, and small business insurance from Liberty Mutual and more than 50 other national and regional insurers.