Specialty insurance market to grow $57b by 2028 on demand shift

Thanks to the demand for more tailored risk coverage amidst increasing globalisation.

The global specialty insurance market is projected to expand by $57.25b between 2023 and 2028, reaching a compound annual growth rate of 10.36%, according to a Technavio report.

The growth is being driven by rising demand for tailored risk coverage amidst increasing globalisation and interconnectivity across industries. 

Businesses are seeking more specialised insurance solutions as they operate in more complex and diverse environments. 

This has led to greater collaboration amongst specialty insurers to offer integrated risk management services.

Digital transformation is also reshaping the market. Insurers are using artificial intelligence, data analytics, and digital platforms to improve underwriting, risk assessment, policy servicing, and claims processing. 

However, as digital adoption increases, the industry faces growing exposure to cyber threats.

Insurers are being urged to invest in robust cybersecurity frameworks to protect sensitive data and sustain operational resilience.

Cyber risks remain a key challenge, particularly with the widespread use of digital tools in underwriting and claims systems.

Despite these challenges, the specialty insurance market is expected to maintain strong momentum in the coming years, supported by evolving risk needs and continued innovation in insurance delivery.