August 2024
Liability Insurance Market (By Coverage Type: General Liability Insurance, Professional Liability Insurance, Insurance for Directors and Officers; By Application: Commercial, Personal; By Enterprise Size: Large Enterprises, Medium Enterprises, Small Enterprises) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2034
The global liability insurance market size was USD 275.24 billion in 2023, calculated at USD 291.86 billion in 2024 and is expected to reach around USD 524.66 billion by 2034, expanding at a CAGR of 6.04% from 2024 to 2034. The North America liability insurance market size reached USD 126.61 billion in 2023. The rising demand for burglary insurance across the world is driving the growth of the liability insurance market.
The U.S. liability insurance market size was exhibited at USD 101.29 billion in 2023 and is projected to be worth around USD 196.39 billion by 2034, poised to grow at a CAGR of 6.20% from 2024 to 2034.
North America held the largest share of the liability insurance market in 2023. The growth of the market in this region is mainly driven by the rising number of lawsuit cases by governments and organizations imposed in various companies across several countries, such as the U.S. and Canada, for various reasons, including fraudulent activities and violation of regulations. The growing developments in the corporate industry in countries such as the U.S. and Canada, along with rising government investments in developing the AI industry across this region, have helped the liability insurance industry to grow in this region.
Moreover, several local market players in liability insurance, such as American International Group Inc., Zurich American Insurance Company, Chubb, and others, are continuously engaged in providing the best insurance policies for the people and adopting strategies such as partnerships, launches, and business expansions, which in turn drives the growth of the liability insurance market in this region.
Asia-Pacific is expected to be the fastest-growing region during the forecast period. The rising developments in the healthcare sector, along with superior healthcare facilities, have increased the demand for personal injury insurance policies due to growing cases of accidents across the region, boosting the market growth. Moreover, the growing demand for liability insurance policies related to agricultural business, along with new regulatory developments and digitalization, is likely to drive the market growth. The rising developments in economic activities, along with rising cases of cybercrimes in the corporate sector, have increased the demand for liability insurance policies, thereby driving market growth.
Additionally, the presence of various local companies of liability insurance, such as Liberty General Insurance Limited, IFFCO-Tokio General Insurance Company Limited, Max Life Insurance, and some others are providing several beneficial insurance policies across the Asia Pacific region, which in turn is expected to drive the growth of the liability insurance market in this region.
The liability insurance market is one of the important industries in the BFSI sector. This industry mainly deals in launching and providing beneficial insurance policies to people across the world. The ongoing changes in people's mindsets, along with the availability of EMI facilities, have increased the sales of insurance policies across the world. This industry provides coverages for several entities that mainly include general liability insurance, professional liability insurance, insurance for directors & officers, and some others. It also finds applications for commercial and personal purposes. Liability insurance is provided to various enterprises, which mainly include large enterprises, medium enterprises, small enterprises, and some others. This industry is expected to grow significantly with the growth in the financial sector.
Report Coverage | Details |
Market Size by 2034 | USD 524.66 Billion |
Market Size in 2023 | USD 275.24 Billion |
Market Size in 2024 | USD 291.86 Billion |
Market Growth Rate from 2024 to 2034 | CAGR of 6.04% |
Largest Market | North America |
Base Year | 2023 |
Forecast Period | 2024 to 2034 |
Segments Covered | Coverage Type, Application, Enterprise Size, and Regions |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Rising demand for directors and officers (D&O) insurance
Companies face certain problems for several reasons, including compliance violations and other factors. Government authorities or some recognized organizations may file lawsuit cases against companies due to non-adherence to their policies. For instance, in March 2024, the U.S. government filed a lawsuit case against Apple. This case was filed because Apple was monopolizing the smartphone industry through unethical processes. In critical situations, the directors and officers of the companies might have to pay huge penalties that are being imposed by the regulatory authorities. Thus, in order to protect the director and officers in emergency situations, the demand for directors and officer insurance increases, which in turn drives the growth of the liability insurance market.
Cybersecurity-related issues and regulatory compliances
Awareness of insurance policies has gained significant traction among the people of the world due to the benefits they provide. Although there are several benefits associated with it, there are also several problems associated with it. Firstly, the financial details of the people can be collected by hackers and saved on the servers, which leads to security breaches. Secondly, there are several rules and regulations that forbid the withdrawal of insured amounts in emergency situations. Thus, cybersecurity issues, along with strict rules associated with insurance terms and conditions, are expected to restrain the growth of the liability insurance market during the forecast period.
AI-based insurance platforms started gaining momentum
The insurance industry has developed rapidly with the development of science and technologies associated with it. Nowadays, tech companies have started developing advanced AI-based insurance platforms that are integrated with modern features to cater to the needs of customers based on their choices and budgets. Thus, the growing proliferation of AI-enabled insurance platforms is expected to create ample growth opportunities for market players in the future.
The general liability insurance segment held the largest market share in 2023. The growing awareness regarding general liability insurance has driven the market growth. Also, the rising demand for third-party bodily insurance due to its coverage for medical expenses is also boosting the market growth. Moreover, the increasing application of a general liability insurance policy covering third-party property damage and reputational harm is expected to propel the growth of the liability insurance market.
The professional liability insurance segment is expected to grow with the highest compound annual growth rate during the forecast period. The growing cases of wrong treatments by doctors across the world drive the market growth. Also, the rising demand for professional liability insurance policies by consultants, brokers, engineers, and some others boosts the market growth. Moreover, the increasing application of professional liability insurance policies to provide coverage during professional errors, judgments, and some other issues is likely to drive the growth of the liability insurance market during the forecast period.
The commercial segment held a dominant share in 2023. The rising demand for insurance policies that provide coverage against property damages has driven the market growth. Also, the growing demand for commercial insurance due to liability protection and business continuity boosts the market growth. Moreover, the increasing application of commercial insurance policies as they provide financial security and help in following compliance with lender requirements is expected to drive the growth of the liability insurance market during the forecast period.
The personal segment is expected to attain the fastest CAGR during the forecast period. The growing demand for personal insurance policies due to tax benefits and loan options has driven the market growth. Also, the rising awareness regarding life insurance policies among the people is driving the market growth. Moreover, the numerous advantages of personal insurance policies, such as hospitalization cost, wealth creation, retirement planning, risk coverage, and some others, are expected to boost the growth of the liability insurance market during the forecast period.
The large enterprises segment dominated the market in 2023. The rise in the number of large enterprises across the world has increased the demand for liability insurance policies, thereby driving market growth. Also, large enterprises may face several issues regarding violating rules and damage to their assets, thereby increasing the demand for liability insurance policies, which in turn drives market growth. Moreover, the rising applications of liability insurance plans to provide coverage to large enterprises against natural disasters are also expected to propel the growth of the liability insurance market during the forecast period.
The medium-sized enterprises segment is estimated to grow with the highest CAGR during the forecast period. The rise in the number of medium-sized companies increases the demand for liability insurance policies, thereby driving market growth. Also, the demand for liability insurance plans by the MSME sector due to several benefits, including health benefits, coverage for workers' compensation, and other employee-related risks, boosts the market growth. Moreover, the rising benefits of MSME-based insurance policies for enhancing credit capacity and ensuring continuous business operations across the world are expected to foster the growth of the liability insurance market during the forecast period.
Segments Covered in the Report
By Coverage Type
By Application
By Enterprise Size
By Geography
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