Enjoy complimentary customisation on priority with our Enterprise License!
The Global Homeowners Insurance Market size is estimated to grow by USD 65.9 billion, at a CAGR of 4.6% between 2023 and 2028. The growth of the market depends on several factors, including the rising number of natural disasters and man-made hazards, the recent development in home insurance, and the rise in government support in the form of subsidies. The increasing occurrence of natural disasters and human-caused risks is driving the preference for homeowner's insurance. Heightened demand for coverage against various accidents such as home damage, asset loss, theft, and fire necessitates insurance companies to innovate and offer comprehensive products ensuring financial protection, including medical expenses. This dynamic contributes to the expansion of the global market.
To learn more about this report, View Sample PDF
The market share growth by the fire and theft segment will be significant during the forecast period. The adoption of fire and theft insurance is high among consumers due to the rising number of accidents, such as external or internal damage to houses, driving the growth of the fire and theft segment.
Get a glance at the market contribution of various segments View Sample PDF
The fire and theft segment was valued at USD 80.90 billion in 2018. Fire insurance includes property insurance that covers damage and losses caused by fire. Homeowners mostly prefer to purchase additional coverage in case their property is lost or damaged because of fire. Purchasing additional fire coverage helps to cover the cost of replacement, repair, or reconstruction of property above the limit set by the property insurance policy. Fire insurance policies typically contain general exclusions such as war, nuclear risks, and similar perils. Similarly, theft insurance covers the cost of stolen or damaged assets such as cash, owned goods, and other items. These policies are offered to house owners, leaving them reassured and relieved of financial losses or leaving the property unattended for an extended period. Hence, due to the above-mentioned factors, the adoption of fire and theft insurance is increasing, which is expected to fuel the growth of the fire and theft segment in the global market during the forecast period.
North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions View the Sample PDF now!
The focused market in North America will grow moderately during the forecast period. This will be mainly because the highest number of claims for catastrophic damage came from North America. This will raise the demand for reinsurance policies for the housing segments in North America. During a catastrophe or calamity, the losses are huge in terms of damage to individual property such as houses. The insured party claims for losses incurred during such calamities, and when the number of claims is massive, the insurance vendor turns to reinsurers for the capital. Hence, the market in North America is expected to grow at a moderate rate during the forecast period.
Take a quick look at various segments. View the Sample PDF now!
In the casualty insurance sector, navigating low interest rates poses significant challenges. Insurers must balance catastrophic concerns and pandemic-related losses amidst volatile financial market losses. These factors impact insurance losses and strain policyholder surplus. Fluctuating asset prices further stress capital and surplus reserves and challenge loss reserves adequacy. In household insurance and private property insurance, insurers innovate with package policies to mitigate risks. They address legal responsibility issues while managing contract terms. Adapting to evolving risks is crucial to safeguard asset prices and maintain robust capital and surplus reserves. Insurers prioritize policyholder surplus to ensure sustainable operations amidst uncertainties in the market landscape.
The rising number of natural disasters and man-made hazards is the main reason behind opting for homeowner's insurance. The rise in the demand for home insurance on accidents such as interior or exterior home damage, damage to assets or injury, theft, and fire puts 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, which boosts the growth of the global market. Natural disasters such as floods, earthquakes, vandalism, and landslides have led to a surge in the demand for house insurance in recent years. The majority of homeowners rely on house insurance to protect themselves against potential financial losses caused by harm to other people's property, family members, and pets. Moreover, home insurance includes coverage, which helps to compensate policyholders of the family members after his/her death. Such factors are expected to drive the growth of the global market during the forecast period.
New technological developments in the home insurance industry is a major trend. The advancement of technology such as geo-location, application program interface (API), artificial intelligence (Al), data analytics, blockchain, and big data opens up new avenues for insurers in the industry. With these technological advancements, home insurance distribution systems are projected to increase productivity in delivering diverse covers such as additional living expenses (ALE), Renter's insurance, and others at the point of purchase. Furthermore, digital transformation allows home insurance firms to provide highly individualized user experiences to their clients.
Furthermore, to preserve their market position in the global market, insurers are investigating the use of big data analytics, which have the potential to generate substantial premiums. Furthermore, technology aid in data collecting, meeting client demands, calculating risks, and detecting fraud. Hence, easy accessibility and convenient home insurance offerings through technological advancements are expected to fuel the growth of the global market during the forecast period.
Vulnerability to cybercrimes is a major challenge in the market. At present, the world is becoming digital and going online to avail diverse benefits such as better-organized data, easy availability of data, multi-screen/multi-device access, efficient handling of client's data, and ease of management. Advances in technology are encouraging online and on-device data storage. The industry relies more on technology, including processing systems, online data, and electronic communications, for ease of business and management. However, the same advances in technology also make data vulnerable to cybercrimes. The incidents of cybercrime include hacking of computers and in-house software as well as intrusion into the intranet portals. The reinsurance industry can be affected by the misappropriation of data on the device or the cloud and then selling the client's confidential information to competitors.
Moreover, any cybersecurity failure or misuse of data can expose the organization's information to hackers. It can also result in a huge monetary loss, and hence, the problem needs to be addressed at the source. For instance, as a result of silent cyber exposure, the insurance and reinsurance business made a loss of USD 2.7 billion from the Petya/NotPetya cyber-attack. Silent cyber exposures can take place when other sorts of insurance or reinsurance products fail to eliminate cyber risks, which possibly will lead to an accumulation of cyber losses. Such factors may hamper the growth of the global market during the forecast period.
Get a detailed analysis of drivers, trends, and challenges View the Sample PDF now!
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. One of the major companies in the market include:
Lemonade Inc. - The key offerings of the company include homeowners insurance.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
In the dynamic landscape of property values and evolving risks, insurance providers utilize advanced risk assessment tools to assess risk profiles. They offer compensation for liability and third-party property damage, covering diverse needs through customized insurance products. With premium flexibility and underwriting guidelines, insurers tailor new home insurance policies to meet customer demands. Virtual interactions on online insurance platforms enhance accessibility, integrating machine learning, virtual reality, augmented reality, and blockchain technology for streamlined operations.
Moreover, from dwelling coverage to content coverage and liability coverage, insurers protect against storms, hurricanes, wildfires, and other severe weather events affecting residential properties. They support landlords and tenants with legal protection and address rental property operations amidst urbanization and construction activity. Utilizing IoT and AI, insurers innovate package policies for property damage and cover risks like floods and man-made disasters. Emphasizing flexible payment plans and fraud detection, they serve SMEs, entrepreneurs, and homebuyers alike, ensuring comprehensive insurance claims management and robust data collection for precise risk calculation.
MarketScope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
Market growth 2024-2028 |
USD 65.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.17 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, Japan, UK, China, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Admiral Group plc, Allianz SE, American International Group Inc., Amica Mutual Insurance Co., AXA Group, Berkshire Hathaway Inc., Chubb Ltd., Erie Indemnity Co., Lemonade Inc., Liberty Mutual Insurance Co., Metlife Inc., Nationwide Mutual Insurance Co., NJM Insurance Group, State Farm Mutual Automobile Insurance Co., The Allstate Corp., The Progressive Corp., The Travelers Co. Inc., USAA, Wells Fargo and Co., and Zurich Insurance Co. Ltd. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Source
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.