Home Insurance Market Outlook - 2027
The global home insurance market was valued at $225.42 billion in 2019, and is projected to reach $395.04 billion by 2027, registering a CAGR of 7.3% from 2020 to 2027.
Home insurance is a kind of property insurance, that provides financial protection to an individual against all the losses and damages happened to the residence. It is sometimes referred as homeowner’s insurance, household insurance, or private property insurance. Home insurance is a package policy, which covers not only damages to the property but also the liability, or legal responsibility, for any injuries and property damage by policyholders. This includes damages caused by household pets, fire, theft, and vandalism. However, there are some natural disasters that are not covered under standard home insurance policy. These include flood, earthquakes, and poor home maintenance.
Growth in global number of households, increase in initiatives by government, and rise in number of accidents and man-made disasters are the major factors that drive the growth of the global home insurance market. However, lack of awareness regarding home insurance policy hampers the growth of the market. On the contrary, untapped potential of emerging economies and new technological developments in the home insurance industry are expected to provide lucrative opportunity for the market expansion during the forecast period.
Region wise, the home insurance market was dominated by North America in 2019, and is expected to retain its position during the forecast period. The major factors that drive the growth of the market in this region include the presence of key players in the U.S. resulting into large-scale purchases of H0-3 homeowner’s coverage in the country to protect lifetime investment. However, Asia-Pacific is expected to witness significant growth rate during the forecast period because of its emerging economies, surge in population, and middle-income segment. Moreover, government of various countries such as Japan, Malaysia, Australia, and Thailand focus on formulating regulations that mandate the home insurance for all residents, which provide lucrative opportunities for the market expansion in this region.
The report focuses on the growth prospects, restraints, and trends of the global home insurance analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global home insurance market share.
By Coverage
Comprehensive coverage accounted for the largest market share in 2019.
Segment Review
The home insurance market is segmented into coverage, end user, and region. On the basis of coverage, the market is categorized into comprehensive coverage, dwelling coverage, content coverage, and other optional coverages. By end user, it is bifurcated into landlords and tenants. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By End User
Tenants segment is projected as one of the most lucrative segments.
Top Impacting Factors
Rise in number of natural disasters and man-made hazards
Rise in demand for home insurance on accidents such as interior or exterior damage of home, damage of assets or injury, theft, and fire builds pressure on insurance companies to invest and develop such products that have less proliferation, high coverage, and provide financial security in the form of medical injury or any other damages boost the home insurance market growth. In recent years, there has been an increase in the number of accidents, in terms of natural catastrophes includes floods, earthquakes, vandalism, and landslides, which has resulted in an increase in the need for home insurance. Majority of the homeowners depend on home insurance to prevent themselves from future financial losses such as injuries to other’s property, family members, and pets. In addition, home insurance incorporates such coverage, which helps to compensate policyholder family members after his/her death.
New technological developments in the home insurance industry
Increase in technologies such as geo-location, application program interface (API), artificial intelligence (AI), data analytics, blockchain, and big data provides innovative opportunities for insurers in the market. With these technological developments, home insurance distribution platforms are expected to enhance productivity for providing various coverage includes ALE Additional Living Expenses, Renter’s insurance, and others seamlessly at the point-of-purchase. Moreover, digital transformation enables home insurance companies to create highly personalized user experiences with their customers. Further, to maintain home insurance market position, insurers are considering use of big data analytics that offer possibilities of generating large premiums. In addition, technologies help in data collection, cater to customer specific needs, calculate risk, and detect fraud. Therefore, easy accessibility and convenient home insurance offerings by technological advancements are expected to provide lucrative opportunities for insurers in the home insurance market opportunity.
By Region
Asia-Pacific would exhibit the highest CAGR of 12.8% during 2020-2027.
Report Coverage & Deliverables
The Home Insurance Market report provides an extensive analysis of market trends, including global and regional market size, growth forecasts, and key drivers. It covers various types of home insurance policies and their impacts, with detailed insights into market share, demographic trends, and end-user applications. The report also highlights significant developments and competitive strategies from major players.
Coverage Insights
The report examines different types of home insurance coverage, including standard property insurance, natural disaster coverage, and additional living expenses. It explores market trends for each coverage type, focusing on their adoption rates and how they address varying homeowner needs.
Procedure Type Insights
Home insurance share insights reveal the distribution of different home insurance policies. Standard property insurance dominates the market, while niche products like flood insurance and earthquake insurance are gaining traction due to increased awareness and risk perception.
Demographics Insights
Home insurance market growth is driven by demographic factors such as homeownership rates, age, and income levels. Young homeowners and middle-income households are increasingly purchasing home insurance, contributing to market expansion.
End User Insights
End-users provides significant home insurance value to individual homeowners and property investors by protecting against property damage, theft, and liability claims. For property investors, home insurance is crucial for managing risks and ensuring financial stability.
Regional Insights
North America: Leads in market value with high adoption rates in the U.S. and Canada, driven by comprehensive insurance policies and regulatory frameworks.
Asia-Pacific: Experiencing rapid growth, especially in China and India, as urbanization and rising incomes drive demand for home insurance.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global home insurance market trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the global home insurance market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the home insurance market.
- The quantitative analysis of the home insurance market from 2019 to 2027 is provided to determine the market potential.
Home Insurance Market Report Highlights
| Aspects | Details |
 By Coverage |
|
 By End User |
|
 By Region |
|
 Key Market Players | Zurich, PICC, Allstate Insurance Company, American International Group, Inc., AXA, Liberty Mutual Insurance Company, ALLIANZ, Chubb, ADMIRAL, State Farm Mutual Automobile Insurance Company |
Analyst Review
Home insurance provides financial protection to an individual’s residence in the event of any disaster or accident. A standard homeowner’s insurance policy offers coverage for the home structure and its belongings in case of destructive event such as fire, theft, vandalism, and others. According to the National Association of Insurance Commissioners, home insurance is an important purchase because it protects assets while buying house through mortgage lender.
Furthermore, home insurance providers are looking forward to implement advanced technologies such as artificial intelligence (AI) and machine learning to track leases and to make decisions accordingly. Moreover, consumer’s trends & preferences has changed in terms of availing home insurance product offerings by online channels in the market. Therefore, home insurance providers have lucrative opportunities to innovate their existing channels and expand their product offerings in the untapped potential of emerging economies. Nevertheless, a considerable number of companies remain under the perception that they have minimum home insurance exposure. Furthermore, the home insurance market is increasingly expanding mainly in countries such as China, Australia, Japan, India, Indonesia, New Zealand, and Singapore with high GDP growth and rise in per capita income. Some of the key players profiled in the report include Allstate Insurance Company, AXA, ADMIRAL, ALLIANZ Group, and others. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
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