New York, USA, March 09, 2022 (GLOBE NEWSWIRE) -- According to Research Dive, the global specialty insurance market is estimated to generate a revenue of $243.70 billion by 2028 and grow at a CAGR of 7.6% over the forecast period (2021 to 2028). The comprehensive report provides a brief summary of the present market scenario comprising key aspects of the market such as growth factors, lucrative growth opportunities, and restraining factors. Besides, the report provides all the specialty insurance market trends, COVID-19 impact on the market, and market estimations making it easier, helpful, and useful for the new participants to understand the market.
Market Dynamics
As per our analysts, the growing integration of technologies, such as artificial intelligence, cloud computing, and blockchain, technological advancements, and the rising demand for specialized expertise in insurance are the significant factors estimated to foster the growth of the global specialty insurance market over the forecast period. Besides, developing countries, especially the rising economies like India, China, Australia, and South Korea provide substantial opportunities for specialty insurers to develop and expand their portfolios. This factor is projected to create huge growth opportunities for the specialty insurance market over the forecast period. However, misconceptions and the lack of information related to specialty insurance are estimated to restrict the market growth in the projected timeframe.
COVID-19 Impact on the Specialty Insurance Market
The COVID-19 pandemic has had a negative impact on the global specialty insurance market growth. The impact on the specialty insurance market share and size is majorly due to the halt in trade and worldwide travel affecting industries like aviation, construction, and marine. As a result, the decreasing utilization of underlying assets, and tremendous losses in these sectors led to the drop in specialty insurance coverage. Moreover, the demand for specialty insurance policies has dropped during the global health crisis. All these factors have unfavorably impacted the global specialty insurance market growth.
Non-life Insurance Sub-segment to Witness Fastest Growth
By type, the non-life insurance sub-segment accounted for $43.49 billion in 2020 and is expected to grow at the fastest rate during the forecast period. This is mainly because non-life insurance covers cyber liability insurance, commercial auto insurances, flood insurance, and others. In addition, a greater emphasis on innovation in non-life insurances is predicted to boost the sub-segments growth by 2028.
Direct Channel Sub-segment to Hold Dominating Market Share
By distribution channel, the direct channel sub-segment is estimated to generate a revenue of $149.41 billion by 2028 and is anticipated to hold the majority of the market share over the forecast period. This is mainly due to rapid growth in advertising via traditional media, telemarketing, and the increasing usage of the internet to solicit business. Besides, consumers can readily compare pricing and policy benefits on the internet, particularly on numerous sites dedicated to comparing insurance prices. These factors are predicted to drive the sub-segment growth in the specialty insurance market.
Business Insurance Sub-segment to Generate Highest Revenue
By end-users, the businesses insurance sub-segment accounted for $100.89 billion in 2020 and is anticipated to garner the highest revenue during the forecast period. This is mainly because specialty insurance plans are becoming gradually important for businesses to protect themselves against out-of-the-blue losses. Besides, specialty insurance protects businesses from lawsuits, commercial obligations, property damage, and other risks, which is predicted to drive the sub-segment growth in the specialty insurance market.
Asia-Pacific Region to Observe Fastest Growth
By region, the Asia-Pacific specialty insurance market is projected to garner a revenue of $69.11 billion by 2028 and witness lucrative growth during the forecast period. The rapid growth of the region can be attributed to the presence of several emerging nations and financial centers such as India, Singapore, and Hong Kong. Besides, insurance firms in the region are shifting towards digital insurance platforms and aiming to give low-cost insurance premium options, which are expected to drive the Asia-Pacific market growth by 2028.
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Prominent Market Players
Some of the top players of the global specialty insurance industry are:
- AXA
- Allianz
- American International Group Inc.
- Assicurazioni Generali S.P.A.
- Chubb, Berkshire Hathaway Inc.
- Munich Re
- Tokio Marine HCC
- PICC
- Zurich.
These players are applying various strategies to gain a competitive edge and stronghold in the global industry.
For instance, in July 2021, Amwins, a leading distributor of specialty insurance products & services globally, launched an exclusive product that combines Sexual Molestation Liability (SML) and Deadly Weapons Protection (DWP) into a single policy. This is the first and only insurance product on the market from Amwins that brings coverage to small & middle-market businesses on a single policy form. - Check which product launches and mergers & acquisitions are common strategies followed by major market players.
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