In terms of revenue, the Global Specialty Insurance Market is expected to grow at a Compound Annual Growth Rate (CAGR) of 9.1% leading the market to reach USD 124.9 Billion by 2028, from the forecast period of 2022 to 2028.
Insurance companies are the most essential services in the banking and finance domain. This service is known to help its clients by providing financial benefits in difficult times. Specialty Insurance has extra benefits and is relatively more expensive than other general insurance. The rise in income of highly skilled professionals and to save taxes fuels the Specialty Insurance Market. Also, straightforward claims and flexibility to ensure consent further drive the market growth.
Key Highlights from Report:
- The sub-segment of Marine, Aviation, & Transportation from the Type segments are anticipated to dominate the Specialty Insurance Market. This sub-segment is the most delicate and expensive sector as losses occurring from aviation, or marine failure are higher and cost massive damage to the company. Thus, most companies associated with aviation and sea marine get Specialty Insurance. Hence, this segment is considered the most prominent growing segment during the forecast period.
- The Business sub-segment of the End-User segment accounted for the largest market share in 2021 for the Specialty Insurance Market. The Business sub-segment holds a prominent position during the forecast period. Heavy Industries and Large Enterprises have witnessed increasing demand for the Specialty Insurance Market. Unique risk-taking firms such as the chemical and oil & gas industries rely on Specialty Insurance companies as general insurance companies do not offer such benefits. However, the cost of Specialty Insurance is higher but quite negligible in case of accidents and other losses.
- Europe is the largest regional segment. This share is attributed to the growing demand for Specialty Insurance in developing economies such as India, China, and Indonesia. The growing manufacturing industries have generated huge demand for this region's Specialty Insurance Market.
The Specialty Insurance Market is expected to witness massive growth during the forecast period. Most of the upcoming companies and significant infrastructure projects across the globe have generated enormous potential for the Specialty Insurance domain. General insurance does not fulfil all the claim benefits; thus, this market will multiply in the coming years. Moreover, increasing technological advancements in industries and aviation will further boost the market. In addition, the implementation of IoT (Internet of Things) and blockchain providers are investing heavily in this domain. For instance, in September 2021, Integrity Specialty, a specialty property & casualty insurance provider, announced that it had raised USD 75 million in capital led by Sequentis Financial LLC to strengthen its product offerings and support its continued growth. The company is expected to use this capital to invest in data and analytics capabilities and move to the next growth phase.
Europe dominated the Global Specialty Insurance Market in 2021 and is likely to continue the same trend during the forecast period. An increase in government initiatives provided for insurance companies will likely generate demand in this region for this market shortly. Increasing key players and rising inclination towards safety in countries such as India & China further add spotlight. In addition, growing infrastructure projects and manufacturing industries have further demand for the Specialty Insurance Market in the coming years.