Property and liability insurance market to reach $1036.17 billion by 2033: Brainy Insights

Newark, March 4, 2024 (GLOBE NEWSWIRE) - Brainy Insights estimates that the $700 billion global property and liability insurance market in 2023 will reach $1,036.17 billion in 2033.

P&C (property and casualty) insurance

This is an abbreviation for property and liability insurance. It is a broad type of insurance that includes both liability and property coverage. Property insurance covers losses or damages to physical property. This property includes residential premises, personal belongings, and commercial real estate. Liability insurance regulates the legal obligations arising from damage or harm to third parties. Businesses purchase this insurance to protect physical assets, mitigate liability risks, and maintain business continuity; individuals acquire this insurance to protect their homes.

The dangers associated with property ownership and participation in certain activities make property and liability insurance essential. It provides comfort and financial stability. Insurance policies offer funds to cover medical bills, settle legal claims, and replace or repair damaged property. These insurance plans can be tailored to each client's unique situation to meet their needs. Property and liability insurance, offering a wide range of coverage options for both individuals and organizations, plays a crucial role in risk management.

According to a study by Brainy Insights, the North American market is expected to dominate the property and liability insurance market during the forecast period. The insurance industry in this region is one of the largest and most developed in the world, offering a wide range of products that meet various customer needs. Strict regulatory policies ensure consumer protection and industry stability, creating a favorable environment for insurers. The high levels of wealth and income, along with society's focus on financial stability, are driving the demand for insurance in North America. Businesses are constantly launching new products and utilizing modern risk modeling, which contributes to the expansion and global dominance of the local market.

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In 2023, the homeowners insurance segment dominated the market with the largest market share of 37% and revenue of $259 billion.

Key market segments

The product type segment is divided into:

Home insurance
Condominium insurance
Car insurance
Rental property insurance
Tenant insurance
Others

The distribution channel segment is divided into:

Direct
Agency
Banking
Others

Market growth factors

The growth of the market is determined by a number of factors. The increase in the frequency and intensity of natural disasters is caused by climate change, leading to greater property damage and loss of life. The frequency and intensity of extreme weather events, such as hurricanes, floods, wildfires, and heatwaves, are increasing due to changes in the planet's climate. The rising frequency and intensity of storms due to global temperature increases have catastrophic consequences for ecosystems, infrastructure, and populations. The growing risks faced by individuals and businesses demonstrate the connection between climate change and natural disasters. These climate-related disasters directly threaten property, causing damage that ranges from structural losses to the near-total destruction of entire cities. The increasing risks and damages caused by climate disasters significantly boost the demand for insurance coverage.

The high cost of insurance premiums can limit the use of property and liability insurance. Therefore, the high cost of premiums and the complex mechanisms for calculating them restrict the use of property and liability insurance. Public awareness of the need for financial protection against liability claims and property damage has increased due to legal regulations requiring insurance coverage. The variety and availability of insurance options and the number of insurance companies are growing. Thanks to the convenience with which online platforms and insurance companies have simplified the insurance process, customers can now easily research, compare, and purchase plans. Technological advancements, along with data analysis, have improved operational efficiency and allowed for more accurate risk assessment. Limitations in insurance coverage and the complexity of the claims settlement process can lead to insufficient reliability of insurance, which will impact market growth.