On-demand Insurance Market Size, Share & Trends Analysis Report By Coverage (Car, Home Appliances, Entertainment), By End-User (Individuals, Businesses), By Region, And Segment Forecasts, 2023 - 2030

On-demand Insurance Market Size, Share & Trends Analysis Report By Coverage (Car, Home Appliances, Entertainment), By End-User (Individuals, Businesses), By Region, And Segment Forecasts, 2023 - 2030

On-demand Insurance Market Growth & Trends

The global on-demand insurance market size is expected to reach USD 4.33 billion by 2030, expanding at a CAGR of 21.2% from 2023 to 2030, according to a new report by Grand View Research, Inc. The increased consumer interest in flexible and personalized insurance schemes is the key driver of growth for the on-demand insurance industry. The nature of risks faced by individuals and businesses is changing rapidly, with new risks emerging every day. The on-demand insurance policies can be tailored to meet these evolving risks, providing customers with the coverage they need when they need it.

Technological advancement and digitalization have transformed the on-demand insurance industry in many ways. The market has undergone a digital revolution in recent years, with the adoption of new technologies such as online platforms, mobile apps, big data and analytics, artificial intelligence, machine learning, the Internet of Things (IoT), and blockchain. Blockchain technology helps on-demand insurance providers prevent fraud by providing secure systems that reduce the risk of fraudulent activities, such as double claims, misrepresentation, and falsified documents.

On-demand insurance companies are collaborating to provide digital solutions to their customers. For instance, in December 2021, Zuno General Insurance Limited partnered with PhonePe Private Limited (PhonePe), a digital payments and financial services company based in India, for digital motor insurance products. Zuni General Insurance Limited launched need-based, on-demand, and bite-sized insurance products in partnership with PhonePe in the digital ecosystem. PhonePe’s extensive customer base would be accessible through this partnership, enabling it to provide simple and all-inclusive digital solutions.

The pandemic has highlighted the need for on-demand insurance coverage, particularly related to business interruption and event cancellations. The on-demand insurance companies have responded by introducing new products to meet these needs, such as trip cancellation, event cancellation insurance, and business interruption insurance. For instance, in September 2022, InsuranceDekho, an Indian insurance-tech startup, partnered with Reliance General, HDFC Ergo, Baja Allianz, Care, and ICICI Lombard, to offer travel insurance products in India.

On-demand Insurance Market Report Highlights

• The car insurance segment dominated the market in 2022. Pay-per-mile on-demand car insurance is a more affordable option for drivers who don't drive very often or who use alternative forms of transportation. By paying only for the miles they drive, drivers are liable to pay reduced insurance premiums as compared to the traditional insurance policy
• The business segment dominated the market in 2022. The growth of the segment can be attributed to the need for cost-saving insurance policies as it allows businesses to purchase coverage for specific events or projects without having to pay for the full year. This can result in significant cost savings for businesses, particularly for those that operate in industries with seasonal fluctuations. On-demand insurance also allows businesses to tailor coverage to meet the specific needs of their employees, customers, or members
• The North American region dominated the market in 2022. North America is one of the most technologically advanced regions. The widespread adoption of smartphones, the internet, and other digital technologies has made it easier for insurers to reach customers and offer on-demand insurance services

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