The study provides a comprehensive analysis of the current market dynamics in the global renters insurance space and offers insights into the market’s projected outlook for 2027, based on a survey of outsourcing decision-makers.

The study delves into the market’s revenue and volume trends, examining price history to estimate the size of the market and identify potential gaps and opportunities. It highlights key players in the market, including:

• Travelers Insurance
• Geico Insurance
• Nationwide Insurance
• USAA Insurance
• Lemonade Insurance
• AXA Insurance
• Zurich Insurance Group
• Aviva Insurance, Generali Group
• AIG (American International Group).

The increasing popularity of renters insurance can be attributed to its ability to provide financial protection against a range of risks faced by individuals who lease homes or apartments. These risks include theft, fire, vandalism, liability claims, and damage to personal property.

Demand for rental insurance solutions to cover both tenants and landlords

Renters insurance not only safeguards the assets of tenants but also offers liability protection in case of accidents or injuries that occur on the rented property. With more people opting to rent rather than buy houses, the demand for renters insurance is on the rise. Insurance companies in this market are competing by offering affordable rates, flexible coverage options, and additional benefits such as pet damage insurance and identity theft protection.

One of the key trends driving the market is the adoption of online platforms and digital technology by renters insurance providers. These platforms enable convenient and streamlined processes for obtaining quotes, managing policies, and filing claims, catering to the preferences of tech-savvy renters. Insurance providers are also focusing on offering tailored coverage options and bundled contracts that combine renters insurance with other types of insurance, such as auto insurance. This transparency and cost-saving approach resonates well with customers.

Insurance options required for growing rental market

The growth of the renters insurance industry is further fuelled by urbanisation trends and the increasing number of people choosing to live in rental properties. Landlords are increasingly including renters insurance as a requirement in lease agreements, which further drives the need for coverage among tenants.

However, the market faces certain restraints that could hinder its growth. Lack of awareness about the benefits and importance of renters insurance among a significant portion of the population poses a challenge. Some renters may view it as an additional expense and be reluctant to purchase it. The perception of high costs, particularly among price-sensitive consumers, may also impede market growth. Additionally, the availability of specific coverage options may limit comprehensive coverage for personal property and liability protection.

Technology can assist the insurtech rental offering

To overcome these challenges and seize opportunities, stakeholders in the renters insurance market can leverage technology, such as mobile applications and online platforms, to enhance the customer experience and streamline the insurance purchasing process. Collaboration with property managers and landlords can increase adoption rates among renters. Renters insurance companies can also provide loss prevention advice and risk mitigation services, thereby increasing the perceived value of renters insurance.

The global renters insurance market presents promising prospects for growth and development. By staying ahead of regulatory frameworks, embracing local reforms, and utilising technological advancements, leaders in the industry can position themselves for success.

For a detailed analysis and comprehensive insights into the market, access the full report here: [link to the report].

Source: Wexford Echo