The global disability market revenue was valued at US$ 3.3 billion in 2021 and is expected to reach US$ 9.2 billion by 2031. The market will register a CAGR (Compound Annual Growth Rate) of 11.2% during the forecast period from 2022 to 2031.
Disability insurance covers the risk of lost income due to the inability to work in the event of a permanent or temporary disability. This type of insurance assists in paying a portion of the lost income as well as medical expenditures if a user were involved in an accident that resulted in a disability. It provides sick leave and disability payments for both short and long-term durations. Generally, disability insurance plans cover total incapacity caused by an accident, either temporary or permanent. If the impairment is just partial, the insurance will pay a percentage of the insured amount based on the severity of the condition.
Factors Affecting Market Growth
Rising awareness about the benefits of disability insurance policies and tax benefits under various sections of the income tax act is driving the growth of the global disability insurance market.
The development of new offers and schemes by insurance companies positively impacts the growth of the disability insurance market.
A lack of awareness among customers is hampering the disability insurance market growth.
COVID-19 Pandemic Effect on Market Growth
During the COVID-19 pandemic, the disability insurance market was negatively impacted due to the lockdown in 2020 and decreasing investment in financial solutions. Furthermore, many small businesses shut down operations due to a lack of funds to sustain in the market and some withheld all investments in advanced business solutions and tools due to the low return on investment. Thus, demand for disability insurance decreased during the COVID-19 lockdown situation.
North America dominated the global disability insurance market in 2021 and is expected to retain its stand during the forecast period. Major players that offer advanced solutions are investing heavily in solutions such as faster claim management to offer lucrative opportunities for the market.
However, Asia-Pacific is expected to witness significant growth during the forecast period owing to growth in awareness regarding the importance of disability insurance among employers and employees working in dangerous fields.
Mutual of Omaha
MetLife Services and Solutions LLC.
Ping An Insurance
Nippon life insurance
Zurich Insurance Group
Assurity Group Inc.
Guardian Life Insurance Company
Petersen International Underwriters (PIU)
The global disability insurance market segmentation focuses on Insurance Type, End-User, Coverage Type, and Region.
Segmentation based on Insurance Type
Business Overhead Expense Disability Insurance
Employer Supplied Disability Insurance
Individual Disability Insurance
High Limit Disability Insurance
Segmentation based on End User
Segmentation based on Coverage Type
Long-Term Disability Insurance
Short-Term Disability Insurance
Segmentation Based on Region
Rest of Western Europe
Rest of Europe
Japan, South Korea
Rest of Asia-Pacific
Middle East & Africa (MEA)
Rest of MEA
Rest of South America