Rising property values boost home insurance demand

The market is projected to reach over 7% CAGR.

The global home insurance market, valued at $233b in 2023, is projected to grow at a compound annual growth rate (CAGR) of over 7% from 2024 to 2032, driven largely by rising property values, according to Global Market Insights.

As property prices increase, homeowners are becoming more aware of the need to protect their assets against risks such as natural disasters, theft, and other incidents. 

Additionally, government initiatives aimed at boosting insurance awareness have encouraged more homeowners to consider purchasing coverage.

The COVID-19 pandemic has also impacted the home insurance market, reducing property transactions and leading to a slowdown in new policies. 

Economic uncertainties have caused some homeowners to reassess spending priorities, potentially lowering demand for home insurance. 

In response, insurers have adjusted underwriting guidelines, offered flexible payment options, and turned to technology to maintain virtual interactions with policyholders.

The growing demand for tailored insurance products is expected to drive future market growth. Insurers are increasingly offering customisable coverage options to meet the specific needs of homeowners. 

In 2023, dwelling coverage, which provides financial protection against property damage from events like fire or storms, generated $75b in revenue. 

Rising home values and increased construction activities are boosting demand for this segment. Meanwhile, the landlords segment contributed $156b, as migration to urban areas drives the need for rental properties and landlord insurance. Landlords increasingly seek coverage for liability claims and property damage to protect their investments.

As investments in new properties increase, demand for flexible and scalable home insurance coverage is expected to grow, positioning the market for further expansion in the coming years.