(MENAFN- EIN Presswire)
Flood insurance is a type of property insurance that protects the insurer's home and belongings from flood damage.
WILMINGTON, DELAWARE, UNITED STATES, November 16, 2023 /EINPresswire / -- Flood insurance is different from common homeowners' or renters' insurance policies, which do not cover flood damage. A flood is an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties. Flood insurance policies are based on the flood risk determined by the Federal Emergency Management Agency (FEMA).
The global flood insurance market was valued at $12 billion in 2022, and is projected to reach $50 billion by 2032, growing at a CAGR of 15.6% from 2023 to 2032.
One of the key drivers of the flood insurance market is an increase in the frequency and severity of floods. Furthermore, people are becoming more aware of the risks of flooding and the importance of flood insurance. This is because of better education and awareness campaigns by government agencies, insurance companies, and community organizations. Thus, the growing awareness is driving the demand for flood insurance and contributing to the flood insurance market growth. However, one of the significant factors hindering the growth of the market is the high premium costs of flood insurance policies. Moreover, lack of awareness and misconceptions about flood risks and coverage are limiting the growth of the flood insurance market. On the contrary, increasing urbanization and infrastructure development in many regions, and climate change and extreme weather events are expected to provide lucrative growth opportunities to the flood insurance market in the upcoming years.
Request Research Report Sample & TOC:
Segment Review
The flood insurance market is segmented into coverage, application, and region. By coverage, the market is differentiated into building property coverage, and personal contents coverage. Depending on application, it is fragmented into residential and commercial. Region-wise, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
Market Landscape and Trends
The flood insurance providers in the market launched digital flood marketplace and private market flood with a mission to enable agents to match policyholders with the best coverage. For instance, in October 2022, Flow Insurance launched their flood insurance marketplace with the help of INSTANDA's complete digital platform. Flow and INSTANDA built a flood marketplace where agents can compare quotes from up to six insurers side-by-side, along with the NFIP rates. Furthermore, AI-driven flood insurtech Neptune Flood formed a partnership with SIAA (Strategic Insurance Agency Alliance), a U.S. alliance of independent insurance agencies. The partnership allows SIAA members to have access to Neptune solutions for flood risk through SIAA MarketFinder, SIAA's online member-only portal for difficult-to-place and specialty risk markets. Therefore, these strategies adopted by key market players provide growth opportunities to the flood insurance industry.
Increasing frequency and severity of floods
One major reason due to which the flood insurance market is growing is that floods are happening more often and becoming more severe. This is due to various factors such as climate change, which leads to more rain and stronger storms. When floods occur, they cause a lot of damage to homes and businesses. Without flood insurance, people might have to pay for these repairs out of their own pockets, which are expensive. Hence, more people are adopting flood insurance to protect themselves from the financial burden of flood-related damage.
Increased awareness and education regarding flood insurance policy
People have become more aware of the risks of flooding and the importance of flood insurance. This is due to better education and awareness campaigns by government agencies, insurance companies, and community organizations. As more people learn about the potential harms of floods and how flood insurance help them recover from such disasters, they are more likely to purchase flood insurance policies. This growing awareness is driving the demand for flood insurance and contributing to the growth of flood insurance industry.
Increase in urbanization and infrastructure development
One significant growth opportunity for the flood insurance market is the increasing urbanization and infrastructure development in many regions. As more people move to cities and urban areas expand, there is a rise in construction and development. However, this led to changes in land use and drainage patterns, which increased the risk of flooding. With more properties and assets at risk, there is a growing need for flood insurance to protect these investments. This trend provides a lucrative opportunity for the market to expand its customer base and offer coverage to individuals and businesses in these urban areas. In addition, insurance companies tap into this opportunity by tailoring flood insurance policies that address the specific needs of urban areas. By aligning their offerings with the demands of these expanding urban regions, insurance providers seize this growth opportunity.
Inquire Before Buying:
Analyst Review
Advancements in technology have played a significant role in expanding the flood insurance market. With more people relying on digital channels, insurance companies improved their online services, making it easier for customers to research, purchase, and manage policies online. This digital transformation enhanced customer convenience as well as allowed insurers to reach a broader audience, including those who might not have considered flood insurance before. Therefore, the adoption of digital tools provides growth opportunities for the flood insurance market.
Key Benefits for Stakeholders
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the flood insurance market analysis from 2022 to 2032 to identify the prevailing flood insurance market opportunity.
The market research is offered along with information related to key drivers, restraints, and opportunities.
The Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the flood insurance market segmentation assists to determine the prevailing flood insurance market opportunities.
Major countries in each region are mapped according to their revenue contribution to the market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as flood insurance market trends, key players, market segments, application areas, and market growth strategies.
Request Customization:
Flood Insurance Market Report Highlights
By Coverage
Building Property Coverage
Personal Contents Coverage
By Application
Residential
Commercial
By Region
North America (U.S., Canada)
Europe (UK, Germany, France, Italy, Spain, Rest of Europe)
Asia-Pacific (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
LAMEA (Latin America, Middle East, Africa)
Key Market Players
Tokio Marine Highland Insurance Services, Inc
Neptune Flood
USAA
GEICO
Chubb
AXA
Progressive Casualty Insurance Company
Allstate Insurance Company
Berkshire Hathaway
Assurant, Inc.
Top Trending Reports:
1 and Canada Travel Insurance Market:
2 Payments Market:
3 Calculators Market:
4 Aggregators Market:
5 & Surety Insurance Market:
6 Card Market:
About Us:
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports Insights" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
We are in professional corporate relations with various companies, and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality of data and help clients in every way possible to achieve success. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
David Correa
Allied Market Research
+1 800-792-5285
email us here
Visit us on social media:
Facebook
Twitter
LinkedIn
MENAFN16112023003118003196ID1107437040