Asia-Pacific liability insurance market to grow 8% annually

Globally, the market is expected to grow from $252.34b in 2021 to $432.81b in 2031.

Asia-Pacific’s liability insurance market is forecast to reach a compound annual growth rate (CAGR) of 8% from 2022 to 2031, according to an Allied Market Reserach report.

Globally, the market is expected to grow from $252.34b in 2021 to $432.81b in 2031. This equates to a CAGR of 5.7% during the period.

Growth drivers include minimisation of business risks and reduced out-of-pocket costs and rise in awareness of third party liability insurance in developing countries, the report said.

But the increase in premium costs and lack of coverage awareness may dampen this sentiment.

In terms of coverage type, the general liability insurance segment accounted for the highest market share in 2021.

But, the insurance for directors and officers segment is estimated to register the largest CAGR of 9.3% from 2022 to 2031, owing to reimbursement offered to a business or non-profit organisation for the legal fees or other costs incurred in defending against lawsuits.