Disability Insurance Global Market Report 2024

The disability insurance market has grown rapidly in recent years. It will grow from $3.7 billion in 2023 to $4.16 billion in 2024 at a compound annual growth rate (CAGR) of 12.5%. The growth observed in the historic period can be attributed to several factors influencing workforce dynamics. Legislative changes, increased awareness, employer benefits programs, and concerns related to healthcare costs and risks have played pivotal roles in shaping this trajectory. The evolving landscape of the workforce, driven by changes in regulations, heightened awareness of issues related to health and well-being, and strategic employer benefits programs, has contributed significantly to the growth during this historical period. Additionally, the dynamic interplay of factors such as legislative shifts and considerations of healthcare costs and associated risks has further influenced the overall growth in this timeframe.

The disability insurance market is expected to see rapid growth in the next few years. It will grow to $6.35 billion in 2028 at a compound annual growth rate (CAGR) of 11.1%. The anticipated growth in the forecast period is expected to be driven by a heightened focus on employee well-being, growing concerns related to healthcare, the adoption of flexible work arrangements, shifts in global economic trends, and a trend toward individualization of coverage. Major trends that are likely to shape the landscape during the forecast period include advancements in claim processing, an increase in awareness and education about disability insurance, the implementation of dynamic pricing models, an expansion of income protection services, and a stronger emphasis on regulatory compliance. These trends collectively contribute to the evolving dynamics of the disability insurance market in the upcoming forecast period.

The escalating number of insurance claims is a key driver for the substantial growth anticipated in the disability insurance market. An insurance claim denotes a formal request for compensation for covered losses submitted to the insurance provider. Disability insurance offers protection against severe injuries and illnesses that can lead to unemployment. It also safeguards against diseases such as heart disease and cancer. The rising frequency of insurance claims is set to propel the disability insurance market, exemplified by a notable surge reported by the Institute for Fiscal Studies in December 2022. The institute revealed an increase in disability insurance claims from 15,000 in 2021 to 30,000 in 2022 among working-age individuals.

The increasing prevalence of chronic diseases is expected to be a significant catalyst for the growth of the disability insurance market. Chronic diseases, lasting three months or more, pose a heightened risk of long-term health issues and disabilities, driving the demand for disability insurance coverage. Advances in medical technology contributing to extended lifespans have led to a surge in chronic diseases, emphasizing the necessity for financial protection. This is underscored by a projection from the National Center for Biotechnology Information (NCBI) in January 2023, forecasting a global increase in people with chronic diseases to 142.66 million by 2050, compared to 71.522 million in 2020. Hence, the expanding prevalence of chronic diseases is a key factor fueling the growth of the disability insurance market.

The prevailing trend in the disability insurance market is the embrace of technological advancements, with major companies prioritizing the integration of innovative technologies for automating insurance claims. Notably, in February 2022, FastTrack, a prominent life and disability insurance technology provider based in the United States, introduced the PTD Auto-Recertification Solution. This new solution empowers insurance carriers by leveraging trigger questions on digitalized claimant statements and employing low-code/no-code implementation procedures. The implementation of this service is streamlined and demands minimal to no IT support from carriers.

Major players in the disability insurance market are strategically developing AI-based Intelligent Process Automation (IPA) to gain a competitive advantage. IPA involves the utilization of cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA) to automate and optimize intricate business processes. An illustrative example of this trend is ExpertAi SpA, an Italy-based software company, which, in June 2023, introduced the expert.ai Platform for Insurance. This AI-driven solution aims to enhance the efficiency of insurers in language-intensive workflows by employing natural language processing (NLP). The platform automates tasks related to document reviews, data extraction, and assessments in underwriting and claims processes. It comes equipped with features such as out-of-the-box data extraction, urgency and severity routing, exposure factor extraction, summarization for human review, GDPR and PII data redaction, and customizable insurance-trained language models. The platform supports various insurance use cases, offering benefits such as increased review capacity, faster policy generation, time savings, and improved accuracy for risk engineers, underwriters, and claims handlers.

In February 2022, Allianz SE, a prominent Germany-based financial services company, acquired a 72% stake in European Reliance General Insurance Company S.A. for approximately €207 million ($223.8 million). This acquisition significantly bolsters Allianz's presence in the lucrative Greek insurance market. European Reliance General Insurance Co., based in Greece, offers a diverse range of insurance products and services to individuals, businesses, and organizations.

Major companies operating in the disability insurance market report are Aegon N.V., Assurity Life Insurance Company, Allianz SE, Assicurazioni Generali S.p.A, Aviva plc, société anonyme, Munich Re, Zurich Insurance Group, Nippon Life Insurance Company, Gerber Life Insurance Company, MetLife Services and Solutions LLC, Ping An Insurance (Group) Company of China Ltd., Guardian Life Insurance Company of America, Illinois Mutual Life Insurance Company, Petersen International Underwriters (PIU), Massachusetts Mutual Life Insurance Company, Mutual of Omaha Insurance Company, China Life Insurance (Group) Company, Sumitomo Life Insurance Company, Dai-ichi Life Holdings Inc., American International Group Inc., State Farm Mutual Automobile Insurance Company, Aflac Incorporated, American International Assurance Group Limited, The Hartford Financial Services Group Inc., Unum Group, Prudential Financial Inc., StanCorp Financial Group Inc., The Guardian Life Insurance Company of America, Reliance Standard Life Insurance Company, Principal Financial Group Inc.

North America was the largest region in the global disability insurance market in 2023. The regions covered in the disability insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the disability insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

There are several main types of disability insurance, each serving distinct purposes. Employer-supplied disability insurance is provided by employers to their employees through workers' compensation programs. This category includes coverage for both short-term disability insurance and long-term disability insurance, catering to the needs of government entities, businesses, and individuals. Additionally, individual disability insurance, high-limit disability insurance, business overhead expense disability insurance, and other specialized forms are available to address specific requirements and circumstances.

The disability insurance market research report provides disability insurance market statistics, including disability insurance industry global market size, regional shares, competitors with a disability insurance market share, detailed disability insurance market segments, market trends, and opportunities, and any further data you may need to thrive in the disability insurance industry. This disability insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The disability insurance market includes revenues earned by entities by providing mortgage disability insurance, supplemental disability insurance and Social Security Disability Insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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