Global Specialty Insurance Market Size, Share & Industry Trends Analysis Report By End User (Business, and Individuals), By Distribution Channel (Brokers, and Non-brokers), By Type, By Regional Outlook and Forecast, 2022 - 2028

Global Specialty Insurance Market Size, Share & Industry Trends Analysis Report By End User (Business, and Individuals), By Distribution Channel (Brokers, and Non-brokers), By Type, By Regional Outlook and Forecast, 2022 - 2028

The Global Specialty Insurance Market size is expected to reach $199.7 billion by 2028, rising at a market growth of 10.2% CAGR during the forecast period.

Specialty insurance is a category of insurance that protects distinctive or exceptional things that are ordinarily excluded from other insurance plans. In response to altering risks, market factors, and opportunities, small and medium-sized businesses frequently look for non-standard policy alternatives to handle their specialty. As a result, SMEs have substantial growth prospects for the international specialized insurance industry.

In addition, specialty insurance providers are concentrating on utilizing Application Programming Interfaces (APIs) and digital services platforms to gain access to various tasks and data throughout the policy lifecycle, including further integrating third-party services. These types of insurances are made to cover companies with unusual requirements, defend against negligence lawsuits, and enable the payment of judgments and attorneys' costs.

Also, this insurance is acquired for things or occasions that are considered exceptional and infrequently covered by conventional insurance policies. The healthcare, environmental, construction, and energy industries all have a high need for specialty insurance. Due to the rise in demand for specialized knowledge throughout the forecast period, the market for specialty insurance globally is predicted to expand.

The greater incorporation of technology into specialty insurance solutions is another factor projected to propel the specialty insurance market's expansion. Also, it is now possible to accurately estimate both current and future threats in the specialty insurance market because of the usage of technologies, including the internet of things (IoT) as well as blockchain.

COVID-19 Impact Analysis

The pandemic's suspension of international trade, new development, and travel had a negative impact on industries like marine, construction, and aviation. However, due to shifting business trends, major market participants embraced technologies like cognitive automation for real-time communication with companies & individuals, as well as solutions based on artificial intelligence (AI) for the claim processing. As a result, the market suffered from the early restrictions placed on several industries due to the pandemic. Still, it is anticipated that things will improve when COVID-19 prevalence declines and new technology is adopted. Therefore, in the coming years, the specialty insurance market will grow despite the negative impact of the pandemic.

Market Growth Factors

A rise in the need for professional expertise

The need for specialized knowledge is growing due to the specialty insurance programs' ability to provide comprehensive and personalized solutions to satisfy the requirements of business segments with distinctive risk profiles. Program administrators (PAs), one of the key distributors of specialized insurance, also have a significant impact on the market. These administrators perform the function of specific expertise, actively engaged in comprehending target market exposures. In order to offer specialized coverages in the market, several specialty brokers, policyholders, and insurers increasingly rely on this knowledge.

Growing application of advanced technologies such as artificial intelligence

Artificial intelligence (AI) is being used increasingly, and AI-capable gadgets are now prevalent in households worldwide. When buying something as significant as P&C insurance, consumers are especially looking for individualized experiences. To satisfy the quick-paced demands of contemporary customers, AI gives insurers the flexibility to design these distinctive experiences. The solution is to utilize AI's skills to use the vast amounts of consumer data currently available to build customized experiences based on a person's behavior and habits. Thus, the expansion of the specialty insurance market is being driven by these significant benefits and technical advancements in the products.

Market Restraining Factors

Decrease in risk capacity and volatile insurance sector

The insurance sector is currently running at a deficit. Significant weather catastrophes are causing extreme property damage, but the professional indemnity and liability industry has also experienced rising claims and subpar financial underwriting performance. As a result, insurance companies will demand higher prices to make up for this. In more extreme situations, insurers may stop covering the businesses or occupations that have fared poorly. Thus, it is anticipated that the unstable insurance market will hinder the adoption of specialty insurance and thereby restrain the market growth.

Type Outlook

Based on type, the specialty insurance market is segmented into political risk & credit insurance, entertainment insurance, art insurance, livestock & aquaculture insurance, marine, aviation & transport (MAT) insurance, and others. The art insurance segment garnered a promising growth rate in the specialty insurance market in 2021. In most cases, specialty insurance offers flexibility in terms of creating the policy based on selective or whole loss as well as various supplemental coverages like exhibition coverage. This freedom to select a personalized policy fuels the specialty insurance market's expansion. Any unforeseen physical loss or damage to the asset insured is covered by the art insurance policy.

Distribution Channel Outlook

On the basis of distribution channel, the specialty insurance market is divided into brokers and non-brokers. The non-broker segment witnessed a significant revenue share in the specialty insurance market in 2021. Direct selling, also known as non-broker distribution, is a practical method for delivering specialized insurance to clients without incurring overhead expenditures and lowering advertising costs. For specialized insurance direct sales, these are the main growth drivers. In this form of distribution used in the insurance sector, insurer staff, rather than independent brokers, advertise insurance plans and coverages.

End User Outlook

By end user, the specialty insurance market is classified into business and individuals. The business segment garnered the largest revenue share in the specialty insurance market in 2021. This is due to the quick market expansion and growing commercial danger to various trades. Furthermore, the specialty insurance market is anticipated to benefit greatly from corporate growth with the goal of delivering goods and services globally. Many businesses, especially SMEs, consider specialty insurance for every step of their workflows to ensure the availability of finances in case of any contingencies or emergencies.

Regional Outlook

Region-wise, the specialty insurance market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe region procured the highest revenue share in the specialty insurance market in 2021. This is due to a rise in political risk associated with commerce, like counterparty non-payment, non-delivery of products paid for in advance, embargo, and license revocation. One of the key trends in the industry in this region is the rise in the use of voice assistants and chatbots to help businesses and individuals that need specialty insurance.

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; American International Group, Allianz Trade, and AXA SA is the major forerunner in the Specialty Insurance Market. Companies such as Tokio Marine Holdings, Inc., Zurich Insurance Group Ltd. are some of the key innovators in Specialty Insurance Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Tokio Marine Holdings, Inc., Allianz Trade (Allianz Group), AXA SA, Chubb Limited, Zurich Insurance Group Ltd., Berkshire Hathaway, Inc., Assicurazioni Generali SpA, Munich Re Group, American International Group, Inc. (AIG), and PICC Property and Casualty Company Limited.

Recent strategies deployed in Specialty Insurance Market

Partnerships, Collaborations, and Agreements:

Jan-2023: Allianz came into partnership with Bridgestone for creating new services and offers together across each partner's key areas of expertise, tyres, and insurance. The companies developed a tyre insurance program as an initial offering for Bridgestone's current and future truck and bus fleet clients. The program has its official debut in Italy and is currently undergoing testing in France, Germany, and the Benelux. The tyre insurance program pays for the replacement of flat tyres brought on by collisions with curbs or other sharp objects, which are normally not covered in the event of damage.

Dec-2022: Tokio Marine HCC extended its partnership with Coforge Limited, a provider of digital services and solutions. The partnership involves cashing on Coforge's competence in the insurance domain and its delivery capabilities globally, and the range of their service suite ties in well with their key technology investments.

Nov-2022: Assicurazioni Generali S.p.A. signed a partnership with Crawford & Company, the claims management, and outsourcing solutions provider to brokers, carriers, and corporations. The partnership was aimed to deliver loss-adjusting services and specialist cyber incident response worldwide. In addition, the partnership broadened Generali's cyber insurance offerings and reinforced the company's position in SME and corporate segments.

Sep-2022: Zurich Insurance Germany extended a partnership with Tata Consultancy Services (TCS), an India-based provider of IT services. The extended partnership focuses on supporting the insurance company to transform, update, and manage its life insurance division, advance digital and cloud adoption, and systematize its IT and business processes.

Aug-2022: Tokio Marine Asia Pte. Ltd. came into partnership with Arbor Ventures, a Singapore-based venture capital firm focused on fintech and insurTech. The partnership demonstrates Tokio Marine's devotion to advancing digital transformation in the global insurance industry.

Feb-2022: Allianz came into collaboration with Lynk & Co, a Sweden-based operator of an automotive brand. The collaboration involves providing Lynk's month to the monthly member with motor insurance. The collaboration is in line with the insurance company's strategy to support new trends in the mobility industry.

Acquisition and Mergers:

Oct-2022: Munich Re completed the acquisition of Apinity GmbH, a company engaged in delivering application programming interface solutions in Software-as-a-Service form for the insurance sector. The acquisition digitalized Munich Re's insurance value chain.

Jul-2022: Generali announced the acquisition of La Médicale from Crédit Agricole Assurances, and the death coverage portfolio from Predica, managed and marketed by La Mé dicale. By acquiring a particular network of independent health professionals, Generali is advancing its aim to improve distribution through agents and to solidify its position in the professional market.

Jul-2022: Chubb Limited took over Cigna's life and non-life insurance companies that house the personal accident, supplemental health, and life insurance business in six Asia-Pacific Markets. The acquisition expanded the former company's presence in the Asia Pacific region.

Jan-2022: Zurich American Insurance Company, part of Zurich Insurance Group acquired Special Insurance Services, a US-based provider of specialty insurance products intended for small and midsize employers. This acquisition enables the acquirer to provide underwriting and service under the same roof.

Product Launches and Product Expansions:

Jan-2023: Tokio Marine Kiln (TMK) introduced IntelliMed, a life sciences insurance product. The new product is intended to cover the gaps. IntelliMed provides specialist and personalized coverage for life sciences risks.

Nov-2022: Zurich Insurance Group introduced Zurich eXchange, a solution that focuses on advancing faster integration of processes. Additionally, this new solution streamlined processes with its company's partners.

Sep-2022: Berkshire Hathaway Specialty Insurance unveiled new Property Damage, D&O, General Liability, Marine Cargo, and Professional Indemnity Insurance policies in Spain. With the launch of these policies, the company is focused on providing customers with industry-leading domestic and international insurance programs.

Geographical Expansions:

Sep-2022: Berkshire Hathway Specialty Insurance established a new office in Belgium for expanding its European presence. With this office, the company enhanced its ability to serve customers and brokers across Europe and provide BHSI certainty.

Scope of the Study

Market Segments covered in the Report:

By End User

• Business
• Individuals

By Distribution Channel

• Brokers
• Non-brokers

By Type

• Marine, Aviation & Transport (MAT) Insurance
• Political Risk & Credit Insurance
• Entertainment Insurance
• Art Insurance
• Livestock & Aquaculture Insurance
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Tokio Marine Holdings, Inc.
• Allianz Trade (Allianz Group)
• AXA SA
• Chubb Limited
• Zurich Insurance Group Ltd.
• Berkshire Hathaway, Inc.
• Assicurazioni Generali SpA
• Munich Re Group
• American International Group, Inc. (AIG)
• PICC Property and Casualty Company Limited

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