APAC’s flood insurance market set for 19.7% CAGR to 2032

Globally, the market is expected to expand 15.6% between 2022 and 2032.

Asia-Pacific’s flood insurance market will likely register a compound annual growth rate (CAGR) of 19.7% from 2023 to 2032, driven by heightened awareness, according to Allied Market Research.

Globally, the market is expected to expand 15.6% between 2022 and 2032, driven by rising demand for property protection, regulatory support, and increasing climate-related risks.

“However, the high premium costs of flood insurance policies and lack of awareness limit the growth of the market,” the report said. 

“On the contrary, an increase in urbanisation and infrastructure development, climate change, and extreme weather events present a prolific opportunity for market growth,” it added.

Building property coverage accounted for nearly two-thirds of market revenue in 2022 and is expected to maintain its lead through 2032, driven by climate change-related flood risks and regulatory requirements in flood-prone areas. 

Personal contents coverage is forecast to grow at a faster CAGR of 17.2% as more individuals seek protection for belongings such as furniture and electronics.

Commercial policies made up more than two-thirds of the market in 2022, but the residential segment is expected to see the highest growth rate at 18.2% over the forecast period, supported by government mandates and growing homeowner awareness.