According to a report by Allied Market Research, the specialty insurance market was valued at $104.7 billion in 2021, and is estimated to reach $279 billion by 2031.
The key players profiled in the specialty insurance market analysis are AXA, American International Group, Inc., Allianz, ASSICURAZIONI GENERALI S.P.A., Chubb, and Zurich.
The rise in demand for specialised expertise, technological advancements, and covering unique needs & preferences are some of the factors that have propelled the market’s growth.
Additionally, the incorporation of technologies in specialty insurance product lines and the untapped potential of emerging economies are expected to provide lucrative opportunities for the specialty insurance solution providers in the coming years.
High risk businesses prefer speciality insurance plans
The report further states that businesses involved in a high-risk holding prefer specialty insurance plans, which help with unusual coverage that are not covered under standard policies. Furthermore, unusual characteristics such as diamond necklace, exotic insurance, title insurance, body part insurance, and jet ski insurance are covered in the specialty insurance.
The COVID-19 pandemic has had a negative impact on the specialty insurance industry, with sectors such as aviation, marine, and construction being affected by the halt in global travel, trade, and new builds during the crisis. This, in turn, has led to a decline in specialty insurance coverages and a decrease in demand for specialty insurance products during the global health crisis.
Major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, Falvey Insurance Group has expanded its product offering with the launch of inland marine coverage to further its growth in specialty markets. In addition, an expansion of the strategic fronting partnership has been announced by specialty insurer Relm Insurance Ltd. and Trisura Specialty Insurance Company.
Marine, aviation and transport are taking the Speciality Insurance market share
On the basis of type, the marine, aviation, & transport (MAT) insurance segment acquired the highest specialty insurance market share in 2021. Europe generated the highest revenue of specialty insurance market in 2021. However, Asia-Pacific is expected to grow at the fastest CAGR during the forecast period, due to increased flow of imports and the rise in the number of small & medium enterprises.
The study’s key findings also show that by end user, the business segment led the specialty insurance market trends in terms of revenue in 2021.
