One-Year Accident Insurance Market Report 2025

The one-year accident insurance market size has grown strongly in recent years. It will grow from $3.09 billion in 2024 to $3.35 billion in 2025 at a compound annual growth rate (CAGR) of 8.5%. The growth during the historical period was driven by rising medical costs prompting demand for short-term coverage, increasing awareness of personal safety and accident protection, a higher number of road and workplace accidents, greater focus on affordable insurance among lower-income groups, and the expansion of the gig economy and freelance workforce seeking limited-term protection.

The one-year accident insurance market size is expected to see strong growth in the next few years. It will grow to $4.58 billion in 2029 at a compound annual growth rate (CAGR) of 8.1%. The projected growth during the forecast period is driven by rising demand for customizable coverage, greater integration of accident insurance, expansion of on-demand insurance services for events and activities, increased collaboration between insurers and e-commerce or fintech platforms, and growing preference for low-commitment insurance. Key trends include the use of cloud analytics for portfolio risk monitoring, robotic process automation in policy renewals, data lake utilization for customer behavior insights, IoT-based health and accident monitoring devices, and cloud-enabled real-time policy management.

IThe rising number of road and workplace accidents is expected to drive growth in the one-year accident insurance market. These accidents, which occur on roads or at work sites, result in injury, harm, or loss to those involved. Rapid urbanization and infrastructure strain contribute to congested roads and overcrowded workplaces, increasing the likelihood of accidents. One-year accident insurance provides financial support for medical treatment, hospitalization, or disability resulting from such incidents, ensuring timely compensation and reducing financial stress on families. For example, in 2022, the United States recorded 5,486 fatal work-related injuries, a 5.7% increase from 5,190 fatalities in 2021, according to the Bureau of Labor Statistics. This rising incidence of accidents is fueling the market for one-year accident insurance.

Major companies in the one-year accident insurance market are introducing advanced solutions, such as annual premium insurance, to provide affordable, easy-to-renew coverage that ensures continuous protection against accidental risks. Annual premium insurance involves paying a yearly premium, covering the policyholder for a full 12 months and offering uninterrupted, hassle-free protection. For example, in September 2024, India Post Payments Bank (IPPB) launched an accident insurance scheme providing coverage between ₹10 lakh and ₹15 lakh with low annual premiums of ₹520 to ₹799. The scheme targets individuals aged 18 to 65 with IPPB accounts and offers benefits for accidental death, permanent or partial disability, and accident-related expenses such as hospital and transportation costs. Additional features include educational support for two children, daily hospital expense coverage, and mental and physical health guidance. The premium account can be opened with as little as ₹200, and yearly renewal is required to maintain coverage.

In November 2024, A-G Specialty Insurance, a U.S.-based insurance agency, acquired First Agency TPA for an undisclosed amount. This acquisition is intended to expand A-G Specialty Insurance’s offerings by leveraging First Agency’s expertise in student and athletic accident coverage, as well as special-risk insurance. The move strengthens A-G’s presence in the third-party administrator (TPA) market, improving claims processing and insurance management for schools, students, and youth programs nationwide. First Agency TPA provides blanket accident insurance, typically covering an entire season or school year, spanning multiple months or a full year.

Major players in the one-year accident insurance market are Allianz SE, China Life Insurance Company Limited, Banco Bradesco SA, China Pacific Insurance (Group) Co. Ltd., Banco Bilbao Vizcaya Argentaria S.A., Crédit Agricole S.A., Aegon N.V., AIA Group Limited, Achmea B.V., Policybazaar, Hanwha Life Insurance Co. Ltd., Assurant Inc., HDFC Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited, Grupo Nacional Provincial S.A.B., The Great Eastern Life Assurance Company Limited, BNP Paribas Cardif, Garanti Emeklilik ve Hayat A.Ş., AlfaStrakhovanie Group, and Assicurazioni Generali S.p.A.

Asia-Pacific was the largest region in the one-year accident insurance market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in one-year accident insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the one-year accident 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.

One-year accident insurance is a short-term insurance plan that provides coverage for accidental injuries, disabilities, or death for a duration of one year. It helps cover expenses such as medical treatment and hospital stays, and offers financial compensation in cases of partial or permanent disability. The primary purpose of this policy is to deliver quick financial support during unexpected accidents, making it suitable for individuals seeking cost-effective, temporary protection.

Key coverage types under one-year accident insurance include accidental death, permanent disability, temporary disability, and medical expense coverage. Accidental death coverage pays beneficiaries if the insured dies due to a covered accident, assisting with financial obligations such as loans and funeral costs. The policy serves various customer types, including individual clients, family plans, corporate policies, and group insurance schemes. Distribution occurs through multiple channels such as online platforms, insurance brokers, direct sales, and bancassurance. The insurance finds application in areas such as third-party insurance and is utilized by individuals, corporations, small and medium-sized enterprises, and other end-users.

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

The one-year accident insurance market includes revenues earned by entities by providing services such as short-term personal accident insurance policies, emergency assistance services, and value-added services. 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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