Income protection market to hit $56b by 2033, APAC to lead growth

The region will benefit from stable financing and supportive policy frameworks.

The global income protection insurance market was valued at $43.15b in 2024 and is projected to grow at a compound annual growth rate of 3% from 2025 to 2033, according to Market Data Foreacast.

The market is expected to reach $56.30b by 2033, up from $44.44b in 2025. 

Asia Pacific is expected to lead market growth in the coming years, supported by technological developments, expanding middle-class demographics, and growing government insurance initiatives. 

The region's income protection insurance market is poised to benefit from stable financing and supportive policy frameworks.

Despite long-term growth prospects, the global market recently contracted. 

New business premiums fell by 10.1%, and the number of contracts declined by 1.7%. Income protection insurance provides up to 85% of pre-tax income for a specified period if the insured becomes partially or fully disabled and unable to work. 

Benefits are based on annual earnings 12 months prior to the illness or injury.

Demand for income protection products has increased, driven by heightened financial awareness following the COVID-19 pandemic and growing concerns about income loss during illness or disability. 

Rising disability levels due to an aging workforce are also contributing to market expansion, particularly in Europe.