PUBLISHER: The Business Research Company | PRODUCT CODE: 1428326
PUBLISHER: The Business Research Company | PRODUCT CODE: 1428326
Home insurance is a policy designed to cover expenses and damage to a home or any other insured property. Individuals obtain home insurance to safeguard their residences, including bungalows, apartments, rental flats, owned houses, or newly constructed homes, from potential threats.
The main types of home insurance coverages include dwelling coverage, content coverage, liability coverage, and others. Dwelling coverage pertains to the portion of a homeowners insurance policy that, in the event of a covered hazard damaging the actual structure of the home, may assist in covering the costs of its reconstruction or repair. Various providers, including insurance companies, insurance agents or brokers, and others, offer home insurance to landlords and tenants alike.
The home insurance market research report is one of a series of new reports from The Business Research Company that provides home insurance market statistics, including home insurance industry global market size, regional shares, competitors with a home insurance market share, detailed home insurance market segments, market trends and opportunities, and any further data you may need to thrive in the home insurance industry. This home insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The home insurance market size has grown strongly in recent years. It will grow from $265.61 billion in 2023 to $289.01 billion in 2024 at a compound annual growth rate (CAGR) of 8.8%. The expansion observed in the historical period can be attributed to factors such as natural disasters, economic stability, homeownership rates, urbanization, and the implementation of risk mitigation programs.
The home insurance market size is expected to see strong growth in the next few years. It will grow to $391.33 billion in 2028 at a compound annual growth rate (CAGR) of 7.9%. The anticipated growth in the forecast period can be attributed to demographic changes, competition in the insurance market, trends in remote work, cybersecurity risks, the impact of the pandemic, the utilization of data analytics, alternative housing models, and the adoption of usage-based insurance. Major trends in the forecast period include the development of smart homes, technological advances in risk assessment, the use of blockchain for claims processing, coverage for eco-friendly homes, and collaborations with insurtech companies.
The anticipated growth in the number of households is set to drive the expansion of the home insurance market. A household refers to a family or a group of people residing together. Home insurance offers comprehensive protection against various risks for people's homes, other residential structures, and their possessions. According to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, in June 2023, the number of privately owned home completions on a seasonally adjusted yearly basis was 1,518,000, reflecting a 5.0% increase from 1,446,000 in May 2022. Additionally, in May 2023, privately owned home starts occurred at a seasonally adjusted annual pace of 1,631,000, marking a 21.7% increase from 1,543,000 in May 2022. Thus, the rising number of households is a key driver behind the growth of the home insurance market.
The escalating number of natural disasters is poised to boost the home insurance market. Natural disasters encompass catastrophic events resulting from natural earth processes, causing significant damage to life, property, and the environment. Home insurance typically covers structural damage caused by natural disasters, along with personal belongings coverage, temporary living expenses, liability protection, and financial safeguards. This coverage helps homeowners avoid substantial out-of-pocket expenses in the aftermath of a natural disaster. According to the Office for the Coordination of Humanitarian Affairs, there were 30,704 deaths from 387 natural hazards and disasters in 2022, tripling the figures from 2021. Consequently, the increasing frequency of natural disasters is propelling the growth of the home insurance market.
Technological advancements represent a prominent trend gaining traction in the home insurance market. Major companies in this market are incorporating new technologies to maintain their market position. For instance, in July 2023, Tensorflight, a U.S.-based software company, introduced TensorAssist, a chatbot assistant powered by OpenAI's ChatGPT-4 technology. This chatbot assists current Tensorflight commercial property insurance customers in quickly comprehending the diverse data points of its property intelligence platform. Tensorflight's virtual artificial intelligence (AI) assistant, tailored for the property insurance industry, acts as a valuable expert in property analysis, providing detailed insights and risk-related advice.
Leading companies in the home insurance market are innovating by introducing new products such as personal cyber coverage to gain a competitive advantage. Personal cyber coverage involves insurance policies designed to safeguard individuals from financial losses and liabilities arising from cyber-related risks and incidents. For example, in September 2022, Safeco Insurance, a U.S.-based insurance company, launched cyber protection, a collection of innovative solutions aimed at shielding homeowners from modern-day online threats such as identity theft, online fraud, cyberextortion, cyberattacks, data breaches, and cyberbullying. This coverage, a first of its kind in the sector, seeks to provide households with comprehensive protection against the growing risks of cyber threats.
In February 2023, Slide Insurance, a U.S.-based insurance company, acquired the renewal rights to over 91,400 Florida homeowners' insurance policies from UPC Insurance for an undisclosed amount. This strategic acquisition has elevated Slide's in-force premium to a total value of $560 million. Most of the policies will be canceled by UPC, and Slide will promptly issue new policies using UPC's forms and pricing. UPC Insurance is a U.S.-based insurance company offering home insurance, property and casualty insurance, and other insurance types.
Major companies operating in the home insurance market report are MetLife Inc., American International Group Inc., Allstate Insurance Company, Liberty Mutual Insurance, The Progressive Corporation, State Farm Mutual Automobile Insurance Company, Chubb Group of Insurance Companies, Zurich Insurance Group Ltd., Travelers Property Casualty Corp, The United Services Automobile Association , The Hartford Financial Services Group Inc., Allianz SE, Aon PLC, American Family Insurance, Kemper Corporation, The Hanover Insurance Group Inc., Nationwide Building Society, Admiral Group plc, Mercury General Corporation, Erie Insurance Group, Amica Mutual Insurance, Shelter Insurance Company, Safeco Insurance, Tokio Marine Insurance Group, Future Generali India Life Insurance Co, National Insurance Company Limited, Cholamandalam MS General Insurance Company Ltd., Farmers Insurance Co Inc., IFFCO Tokio General Insurance Company Ltd.
North America was the largest region in the home insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the home insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the home insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The home insurance market includes revenues earned by entities through safety, property protection, and damage expenses. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Home Insurance Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on home insurance market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for home insurance ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The home insurance market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.