Specialty Insurance Global Market Report 2024

The specialty insurance market size has grown rapidly in recent years. It will grow from $89.87 billion in 2023 to $99.26 billion in 2024 at a compound annual growth rate (CAGR) of 10.5%. The growth observed in the historical period can be attributed to various factors including the growing need for risk mitigation, significant regulatory changes, the impact of globalization, the emergence of new industries, and prevailing trends in litigation.

The specialty insurance market size is expected to see rapid growth in the next few years. It will grow to $147.67 billion in 2028 at a compound annual growth rate (CAGR) of 10.4%. Anticipated growth in the forthcoming period is expected to be driven by a range of factors such as the escalating threats in cybersecurity, the impacts of climate change, preparedness for pandemics, continuous technological innovations, the evolution within the healthcare industry, and the shifting landscape of legal considerations. Key trends projected for the forecast period encompass the development of customized insurance solutions tailored for the cannabis industry, increased demand for space insurance within the aerospace sector, specialized coverage catering to fine art and collectibles, the expansion of insurance coverage for renewable energy projects, and a heightened focus on employee benefits liability coverage.

The specialty insurance market is anticipated to expand due to a rise in natural disasters. These catastrophic events, from hurricanes to earthquakes, create significant damage and financial risk. Specialty insurance tailored for such disasters mitigates these risks by providing coverage for property damages and business disruptions. In 2022, the United States suffered losses exceeding $1 billion from 18 weather and climate crisis incidents, resulting in fatalities and substantial economic damages. This surge in natural disasters is a key driver for the specialty insurance market's growth.

The specialty insurance market foresees growth due to the rising frequency of cyber attacks. Cyber-attacks pose deliberate and malicious attempts to compromise computer systems or digital data, driving the need for comprehensive insurance solutions. In 2021, there was a 50% increase in overall corporate hacking attacks per week, peaking at 925 attacks per week per organization globally. Hence, the rising frequency of cyber-attacks fuels the specialty insurance market's growth.

Technological advancements are reshaping the landscape of the specialty insurance market. Businesses in the insurance sector leverage cutting-edge digital solutions to expand their operations and tailor product offerings to niche client demands. In November 2022, Kingstone Insurance, a US-based company, introduced Sure AI Assistant, an artificial intelligence-powered tool revolutionizing the claims process. This AI-powered assistant utilizes natural language processing and real claims data to guide policyholders seamlessly through claim submissions, especially during peak call volumes or natural disasters.

Leading entities in the specialty insurance market forge strategic partnerships to innovate and solidify their market positions. Collaborations in this sector foster innovation, leverage combined expertise, and expedite advanced therapies' development and commercialization. For example, in August 2021, Mosaic Insurance Holdings Limited, a UK-based insurance company, partnered with DXC Technology Company, a US-based IT services provider, to launch Mosaic's Platform. This platform, integrating modern technologies such as automation, blockchain-enabled data access, and AI underwriting support, aims to expedite specialty insurance underwriting, sales, and services.

In October 2022 witnessed Core Specialty Insurance Holdings, a US-based insurer catering to small-to-medium-sized businesses, finalizing the acquisition of Hallmark Financial Services Inc. for $40 million. This strategic acquisition bolsters Core Specialty Insurance Holdings' portfolio, particularly in offering specialized insurance solutions, positioning the company for increased competitiveness within the market. Hallmark Financial Services Inc., a diversified specialty property and casualty insurer based in the US, adds depth and strength to Core Specialty's insurance offerings.

Major companies operating in the specialty insurance market report are Berkshire Hathaway Specialty Insurance, Allianz Group, AXA SA, Assicurazioni Generali SpA, Zurich Insurance Group Ltd., Nationwide Mutual Insurance Company, American International Group Inc., Chubb Corp., QBE Insurance Group Limited, The People's Insurance Company of China Limited, Manulife Reinsurance Limited, Everest Group Ltd., Markel Group Inc., Fidelity National Financial Inc., W.R. Berkley Corporation, Arch Capital Group Ltd., The Hanover Insurance Group Inc., AXIS Capital Holdings Limited, RenaissanceRe Holdings Ltd., Hiscox Ltd., Munich Reinsurance America Inc., Selective Insurance Group Inc., Tokio Marine HCC, Alleghany Corporation, Endurance Specialty Holdings Ltd., Argo Group International Holdings Ltd., Lancashire Holdings Limited, Validus Holdings Ltd., Cincinnati Financial Corporation, Aspen Insurance Holdings Limited, Fairfax Financial Holdings Limited, Catlin Group Limited, CNA Financial Corporation, Sompo International Holdings Ltd., AmTrust Financial Services Inc., Sirius International Insurance Group Ltd., RLI Corp.

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

Specialty insurance includes categories such as marine, aviation, and transport (MAT), political risk and credit insurance, entertainment insurance, art insurance, livestock and aquaculture insurance, among others. Within the MAT sector, this involves insuring transportation modes such as ships, freight, terminals, and airplanes facilitating the movement of individuals via air and sea. It covers various aspects including the physical structure of aircraft and ships, and the protection of goods during transit. These specialized insurance segments operate through major distribution channels such as brokers and non-brokers, serving both business entities and individual consumers.

The specialty insurance market research report is one of a series of new reports that provides specialty insurance market statistics, including specialty insurance industry global market size, regional shares, competitors with a specialty insurance market share, detailed specialty insurance market segments, market trends and opportunities, and any further data you may need to thrive in the specialty insurance industry. This specialty 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 specialty Insurance market includes revenues earned by entities by providing managed services, digital client engagement, customer-centric propositions, and data management related to 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.