Building property coverage accounted for nearly two-thirds of market revenue in 2022 and is expected to maintain its lead through 2032, supported by climate change–related risks and regulatory requirements in flood-prone areas.
Asia-Pacific’s flood insurance market is on track for a 19.7% compound annual growth rate (CAGR) from 2023 to 2032, propelled by heightened awareness, according to Allied Market Research. Globally, the flood insurance market is expected to expand 15.6% between 2022 and 2032, driven by rising demand for property protection, regulatory support, and increasing climate-related risks
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Demand Drivers—and the Headwinds
The outlook is buoyed by growing recognition of flood risk and the need to protect homes and businesses. Yet high premium costs and a lack of awareness continue to limit growth, the report said. On the other side of the ledger, urbanisation and infrastructure development, climate change, and extreme weather events present a prolific opportunity for market expansion.
Building property coverage accounted for nearly two-thirds of market revenue in 2022 and is expected to maintain its lead through 2032, supported by climate change–related risks and regulatory requirements in flood-prone areas.
Meanwhile, personal contents coverage—protection for belongings like furniture and electronics—is forecast to grow at a faster CAGR of 17.2%, as more individuals seek to insure what’s inside their homes.
Customer Segments: Commercial Dominates, Residential Accelerates
Commercial policies made up more than two-thirds of the market in 2022. Even so, the residential segment is expected to post the highest growth rate at 18.2% over the forecast period, aided by government mandates and growing homeowner awareness.
Against APAC’s rapid trajectory, the global flood insurance market is projected to expand 15.6% from 2022 to 2032. The same forces shaping Asia-Pacific—property protection needs, regulatory support, and climate-related risks—are driving worldwide demand, even as premium affordability and awareness gaps temper the pace.
Lead image courtesy of Himanshu Bhatt / Nurphoto via Getty Images (Monsoon flooding in Mumbai)
