Legal protection insurance slated for 7.7% through 2029

Future growth is expected to come from increased use of digital legal platforms.

The legal protection insurance market continued to grow strongly, with its size increasing from $16.20b in 2024 to an estimated $17.50b in 2025, reflecting a compound annual growth rate (CAGR) of 8.1%, according to The Business Research Company.

Growth in recent years has been driven by higher legal awareness amongst individuals, more civil and labour disputes, wider efforts to improve access to justice, an expanding pool of legal service providers, and rising litigation costs. 

These factors have increased demand for insurance products that help manage legal expenses.

The market is expected to maintain steady expansion over the next few years, reaching $23.55b by 2029 at a CAGR of 7.7%. 

Future growth is expected to come from increased use of digital legal platforms, stronger demand from small and medium-sized enterprises and solo professionals, and wider use of legal protection insurance in property and real estate matters.

Other drivers include enhancements to employee benefit programmes and a growing focus on regulatory and business compliance.

Rising demand for legal services is further supporting market growth. Legal protection insurance helps reduce the high cost of legal representation, making professional legal support more accessible to individuals and smaller businesses. 

In Australia, the Australian Bureau of Statistics reported that Legal Aid Commissions and Community Legal Centres assisted 432,274 clients in 2023 to 2024, up 1% from the previous year, highlighting the growing need for affordable legal services.