Lenders Mortgage Insurance Market Report 2025

The lenders mortgage insurance market size has grown strongly in recent years. It will grow from $9.23 billion in 2024 to $9.85 billion in 2025 at a compound annual growth rate (CAGR) of 6.7%. The growth during the historic period can be linked to rising housing prices, increasing urbanization rates, a surge in first-time homebuyers, expanding home loan volumes, and higher household debt levels.

The lenders mortgage insurance market size is expected to see strong growth in the next few years. It will grow to $12.57 billion in 2029 at a compound annual growth rate (CAGR) of 6.3%. In the forecast period, growth is expected to be driven by heightened interest in affordable housing, growing demand for mortgage securitization, increased mortgage market penetration in emerging economies, stronger regulatory emphasis on loan-to-value ratios, and a rising need for credit protection amid economic uncertainties. Key trends anticipated include advancements in risk-based pricing models, the integration of digital mortgage platforms, development of tailored lender’s mortgage insurance products, and the adoption of blockchain technology for claims management.

The rising housing prices are expected to drive growth in the lenders mortgage insurance market in the coming years. Housing prices represent the amount of money needed to buy residential properties in a particular area over a certain time frame. The increase in housing prices is influenced by low interest rates, which make borrowing more affordable and boost demand for homes, pushing prices higher. Lender’s mortgage insurance supports these rising prices by enabling higher loan-to-value lending, allowing more buyers to enter the market with smaller down payments. This increases accessibility to homeownership, sustaining demand and contributing to stability in the housing market. For example, in July 2025, the United States Census Bureau, a US government agency, reported that the average sales price of new houses sold in June 2025 was $501 million, up from $487.2 million in June 2024. Thus, rising housing prices are fueling the growth of the lenders mortgage insurance market.

Key players in the lenders mortgage insurance (LMI) market are focusing on advanced digital innovations such as distributed ledger technology (DLT)-based platforms to improve transparency, streamline operations, and reduce risks. Distributed ledger technology platforms are decentralized digital systems that record, share, and synchronize transactions or data across multiple nodes without relying on a central authority. For instance, in March 2025, Magyar Nemzeti Bank (MNB), the central bank of Hungary, launched a blockchain-based digital register for mortgages and home insurance utilizing DLT. This platform enables secure, paperless, and GDPR-compliant sharing of insurance data between lenders and insurers, eliminating manual document submissions from homeowners. It ensures real-time updates, reduces fraud risks, and enhances regulatory compliance by maintaining a tamper-proof record of lenders mortgage insurance policies.

In June 2024, Arch U.S. MI Holdings Inc., a US-based insurance services firm, acquired RMIC Companies Inc. for an undisclosed sum. Through this acquisition, Arch U.S. MI Holdings Inc. aims to leverage the scale of its platform to realize significant expense and capital synergies, while swiftly maximizing the value of integrating RMIC’s run-off mortgage insurance portfolio into its existing U.S. primary mortgage insurance business. RMIC Companies Inc. is a US-based insurer specializing in lender-focused mortgage insurance.

Major players in the lenders mortgage insurance market are Commonwealth Bank Lenders Mortgage Insurance Limited, QBE Insurance Group (QBE LMI), Westpac LMI., Suncorp Lenders Mortgage Insurance Limited., National Australia Bank Limited., Arch Capital Group Ltd., Old Republic International Corporation, Genworth Financial Inc., Radian Guaranty Inc., Mortgage Guaranty Insurance Corporation, CUNA Mutual Holding Company, Essent Group Ltd., Sagen MI Canada Inc., Helia Group Limited, Triad Guaranty Insurance Corporation, United Guaranty Corporation, National Mortgage Insurance Corporation, Canada Guaranty Mortgage Insurance Company, AmTrust Europe Limited, CMG Mortgage Insurance Company.

North America was the largest region in the lenders mortgage insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in lenders mortgage insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the lenders mortgage insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Lenders mortgage insurance (LMI) is a type of insurance designed to protect lenders from financial loss if a borrower defaults on a home loan. It is usually required when the borrower’s deposit is less than 20% of the property’s purchase price. The main goal of this insurance is to lower the lender’s risk, enabling them to provide loans to borrowers with smaller deposits.

The key types of lenders mortgage insurance include borrower-paid, lender-paid, single premium, and split premium. Borrower-paid LMI refers to premiums paid directly by the borrower, either monthly or as a lump sum, rather than being added to the loan amount or paid by the lender. This insurance covers various categories such as standard LMI, low-doc LMI, and non-standard LMI, catering to different borrower profiles such as first-time homebuyers and repeat buyers. It is applied across multiple channels, including agency, digital and direct sales, brokers, and bancassurance.

The lenders mortgage insurance market research report is one of a series of new reports that provides lenders mortgage insurance market statistics, including lenders mortgage insurance industry global market size, regional shares, competitors with a lenders mortgage insurance market share, detailed lenders mortgage insurance market segments, market trends and opportunities, and any further data you may need to thrive in the lenders mortgage insurance industry. This lenders mortgage 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 lenders mortgage insurance market includes revenues earned by entities through risk assessment and underwriting, lender protection coverage, premium financing options, claims management, and regulatory compliance support. 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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