Personal Loan Credit Insurance Market Report 2026

The personal loan credit insurance market size has grown strongly in recent years. It will grow from $16.72 billion in 2025 to $18.28 billion in 2026 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to growth in consumer lending activities, expansion of personal loan portfolios, rising awareness of credit risk protection, increased collaboration between banks and insurers, availability of bundled insurance products.

The personal loan credit insurance market size is expected to see strong growth in the next few years. It will grow to $25.86 billion in 2030 at a compound annual growth rate (CAGR) of 9.1%. The growth in the forecast period can be attributed to increasing adoption of AI-driven underwriting, rising demand for instant policy issuance, expansion of online insurance platforms, growing focus on customized insurance coverage, increasing regulatory emphasis on borrower protection. Major trends in the forecast period include increasing adoption of embedded loan protection products, rising demand for digital insurance distribution, growing use of risk-based premium pricing models, expansion of flexible coverage options, enhanced focus on customer-centric policy design.

The rising financial literacy is anticipated to drive the expansion of the personal loan credit insurance market in the future. Financial literacy is defined as the ability of individuals to comprehend and apply various financial skills, such as budgeting, investing, and managing debt. This increase in financial literacy stems from the broadening of mandatory financial education in schools, which is growing as more states implement graduation requirements for personal finance courses. Financial literacy supports personal loan credit insurance by enabling consumers to understand and choose coverage that protects them from the risks of loan default. For example, in January 2025, the City of St George's, University of London, a UK-based research university, reported that financial literacy in the UK remains consistently low, with 39% of adults - about 20.3 million people - lacking confidence in managing money. Considerable disparities exist across gender, education, income, and ethnicity, with gaps reaching up to 45% when these demographic factors overlap. Notably, millennials show lower financial literacy than expected, while both younger and older age groups are particularly vulnerable to risks related to financial illiteracy. Consequently, the growing financial literacy is fueling the growth of the personal loan credit insurance market.

Leading companies in the personal loan credit insurance market are focusing on launching innovative solutions, such as digital lending insurance products, to simplify underwriting processes, improve customer experience, and broaden coverage accessibility through online platforms. Digital lending insurance products are insurance policies embedded within online lending platforms that offer borrowers protection against risks such as death, disability, or job loss, ensuring the continuity of loan repayments. For instance, in September 2023, TruStage Financial Group, a US-based financial services company, introduced Payment Guard Insurance, the first digital lending insurance product designed to safeguard borrowers against unexpected job loss or disability that could result in loan defaults. This insurance is directly integrated into the digital lending process, automatically covering borrowers as soon as their loans are funded at no extra cost or change to loan terms. It helps lenders reduce defaults, enhance loan portfolio performance, and increase borrower conversion rates, while providing borrowers peace of mind during financial difficulties. The product offers no-code integration, can be customized to lenders' budgets, and facilitates easy digital claims submission.

In June 2024, Senang.io, a Malaysia-based insurance platform offering loan protection insurance, partnered with GoodTech Information Systems to expand loan protection insurance in rural Philippines. This collaboration aims to provide tailored credit protection insurance products integrated with rural banks’ loan services, improving financial security and access to microinsurance for rural Filipino communities, targeting over one million customers within the first year. GoodTech Information Systems is a Philippines-based provider of loan protection insurance products.

Major companies operating in the personal loan credit insurance market are CNP Assurances, Tokio Marine Holdings, Zurich Insurance Group, Chubb Limited, AEGON N.V., Banco Bilbao Vizcaya Argentaria, QBE Insurance Group, Hanwha Life Insurance Company, National Bank of Canada, Securian Financial Group Inc., Great American Insurance Company, OneMain Financial Inc., TruStage Financial Group Inc., DZ Bank AG, Fortegra Credit Insurance Inc., GK Life Insurance Caribbean Limited, Randolph-Brooks Federal Credit Union, Dollar Bank Federal Savings Bank, Virginia Credit Union, Seoul Guarantee Insurance Company, Altra Federal Credit Union, AIA Group.

North America was the largest region in the personal loan credit insurance market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the personal loan credit insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the personal loan credit insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The personal loan credit insurance market includes revenues earned by entities by providing services, such as term life insurance, employer-provided disability insurance, and redundancy insurance. The market value also includes the value of related financial products or riders sold by the service provider or bundled within the insurance plan, such as unemployment protection, accidental coverage, or payment holiday options.

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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