The On-demand Insurance Market size was valued at USD 3.8 Billion in 2022 and is projected to reach USD 15.2 Billion by 2030, growing at a CAGR of 19.1% from 2024 to 2030.
The on-demand insurance market is a rapidly growing sector that tailors coverage to the specific needs of the consumer, enabling individuals and businesses to access flexible, short-term insurance policies when required. It operates on a pay-per-use model that grants users the ability to purchase insurance only for the duration they need it. This emerging model has disrupted traditional insurance by offering more control, transparency, and affordability. The market can be segmented into two main categories: Individuals and Businesses, each having distinct needs and applications of on-demand insurance policies. Below, we will explore these subsegments in detail.
The 'Individuals' segment represents a significant portion of the on-demand insurance market. With an increasing demand for flexibility, affordability, and convenience, individual consumers are embracing the benefits of on-demand insurance. This segment primarily serves people looking for short-term, tailored coverage for specific circumstances such as travel, health, or personal property. For example, consumers can opt for on-demand travel insurance for a single trip or purchase health insurance for a short period based on specific medical needs. Additionally, the rise of the gig economy and freelance work has contributed to the popularity of on-demand health and accident insurance policies for those without traditional employer-sponsored coverage.
On-demand insurance models provide an easy-to-use interface, enabling individuals to select policies directly from digital platforms and purchase them in real-time. This is particularly appealing for consumers who do not require continuous coverage but still need the peace of mind that comes with protection against unforeseen events. As technology continues to evolve, personalization in on-demand insurance will likely increase, offering individual users more tailored options based on data-driven insights and preferences. The overall convenience of managing insurance policies via mobile apps or websites has made this segment increasingly popular among millennials and tech-savvy consumers who seek instant access to financial protection without the complexity of traditional insurance contracts.
The 'Businesses' segment is another critical driver of the on-demand insurance market. Businesses of all sizes—from small startups to large corporations—are increasingly turning to on-demand insurance solutions to meet their unique and dynamic insurance needs. These solutions provide companies with the flexibility to scale their coverage according to the ebb and flow of business activities. For instance, a business might purchase coverage for a particular event, such as a conference or a one-time shipment, without having to commit to long-term policies. On-demand policies are also useful for businesses that need specific types of coverage, such as cyber insurance, liability insurance, or workers’ compensation, for certain projects or periods of high risk.
With the growth of the sharing economy and online platforms, businesses are increasingly seeking coverage that is specific to their business model. For example, on-demand insurance products can be customized for companies in industries such as logistics, transportation, and healthcare, where risks are fluid and often short-term. Businesses can also benefit from the ability to adjust their coverage as their needs change in real-time, making it easier to comply with regulatory requirements, protect against liability, or safeguard intellectual property. The on-demand insurance model also provides businesses with enhanced cost efficiency, as they only pay for coverage when it is necessary, thus optimizing their operational costs and improving cash flow management.
Download In depth Research Report of On-demand Insurance Market
By combining cutting-edge technology with conventional knowledge, the On-demand Insurance market is well known for its creative approach. Major participants prioritize high production standards, frequently highlighting energy efficiency and sustainability. Through innovative research, strategic alliances, and ongoing product development, these businesses control both domestic and foreign markets. Prominent manufacturers ensure regulatory compliance while giving priority to changing trends and customer requests. Their competitive advantage is frequently preserved by significant R&D expenditures and a strong emphasis on selling high-end goods worldwide.
Slice Insurance Technologies Inc.
VSure.life
Xceedance
Inc.
SkyWatch Insurance Services
Inc.
Zuno General Insurance Limited
JaSure
Thimble
JAUNTIN
Cuvva
Snap-it Cover
North America (United States, Canada, and Mexico, etc.)
Asia-Pacific (China, India, Japan, South Korea, and Australia, etc.)
Europe (Germany, United Kingdom, France, Italy, and Spain, etc.)
Latin America (Brazil, Argentina, and Colombia, etc.)
Middle East & Africa (Saudi Arabia, UAE, South Africa, and Egypt, etc.)
For More Information or Query, Visit @ On-demand Insurance Market Size And Forecast 2024-2030
Several key trends are shaping the on-demand insurance market as it continues to grow and evolve. First and foremost, there is an increasing consumer preference for flexibility and instant access to coverage. With the rise of digital platforms, consumers now expect seamless and real-time experiences when purchasing insurance. Insurance companies are increasingly adopting technology solutions, such as artificial intelligence and machine learning, to enhance customer experiences and deliver personalized offerings. This trend is driving the development of mobile-first platforms, where individuals and businesses can access insurance products instantly and with minimal hassle.
Another key trend is the rise of usage-based insurance (UBI) models. This trend is particularly relevant in the automotive and health insurance industries, where customers are charged based on actual usage or risk exposure rather than traditional fixed premiums. The popularity of UBI is fueling the growth of on-demand insurance, as consumers are more willing to embrace policies that align with their actual consumption patterns. Additionally, data privacy and security are becoming critical considerations, as insurers rely on digital platforms and consumer data to tailor their offerings. As such, there is a growing emphasis on ensuring that consumer data is protected and handled with transparency.
The on-demand insurance market presents numerous opportunities for both established insurers and new market entrants. For traditional insurers, adopting an on-demand model can help capture the growing demand for personalized, flexible coverage options. This market segment is especially attractive to younger generations, who are more likely to embrace digital-first solutions. Furthermore, on-demand insurance presents a valuable opportunity to engage with underinsured populations, particularly in emerging markets where access to traditional insurance may be limited.
New entrants can also capitalize on this market by offering niche insurance products that cater to specific needs or industries, such as coverage for remote workers, freelance professionals, or specialized business ventures. The rise of the gig economy, for example, presents opportunities for insurers to create policies specifically designed for workers who require flexible and portable coverage. Additionally, as more businesses turn to technology and data-driven solutions, there is an opportunity for insurers to collaborate with tech firms to enhance their digital platforms, improve underwriting accuracy, and offer more tailored insurance products to both individuals and businesses.
1. What is on-demand insurance?
On-demand insurance refers to flexible insurance policies that can be purchased for specific, short-term needs, offering coverage only when required.
2. How does on-demand insurance work?
On-demand insurance allows consumers to purchase coverage via digital platforms for a short duration, paying only for the specific time period of protection.
3. Why is on-demand insurance popular?
The growing preference for flexible, cost-effective, and easy-to-access insurance policies drives the popularity of on-demand insurance among consumers and businesses.
4. Can on-demand insurance be used for health coverage?
Yes, many on-demand insurance providers offer short-term health insurance, which can be tailored to specific health needs or temporary medical coverage.
5. What industries benefit from on-demand insurance?
Industries such as travel, automotive, healthcare, logistics, and the gig economy benefit greatly from the flexibility of on-demand insurance policies.
6. Can I get on-demand insurance for my car?
Yes, on-demand auto insurance allows consumers to purchase coverage for specific periods, such as for a trip or short-term rental.
7. Is on-demand insurance cheaper than traditional insurance?
In many cases, yes. On-demand insurance can be more cost-effective as it allows consumers to pay only for the coverage they need, avoiding long-term commitments.
8. Who offers on-demand insurance?
Several insurers and tech-based startups offer on-demand insurance products, often through digital platforms like mobile apps and websites.
9. Can businesses use on-demand insurance?
Yes, businesses can purchase on-demand insurance for short-term needs, such as covering specific events, risks, or projects.
10. How does on-demand insurance benefit businesses?
On-demand insurance offers businesses flexibility, cost control, and the ability to tailor policies to their specific and changing needs.
11. Are on-demand insurance policies customizable?
Yes, most on-demand insurance products are highly customizable, allowing consumers and businesses to choose the coverage that best fits their needs.
12. Is on-demand insurance available worldwide?
While on-demand insurance is growing globally, availability may vary by region, with some countries adopting the model faster than others.
13. What is the role of technology in on-demand insurance?
Technology enables real-time access, personalized policies, and data-driven pricing, making on-demand insurance more accessible and efficient for users.
14. How do on-demand insurance providers determine premiums?
Premiums for on-demand insurance are typically determined by factors such as usage patterns, risk assessment, and coverage duration.
15. Can I cancel on-demand insurance?
Yes, most on-demand insurance policies can be canceled at any time, as they are typically offered on a short-term basis.
16. What is the difference between on-demand insurance and traditional insurance?
On-demand insurance offers flexible, short-term coverage, while traditional insurance involves long-term contracts with fixed premiums.
17. What type of on-demand insurance is best for travelers?
Travel insurance policies are among the most common on-demand products, offering coverage for short-term trips, medical emergencies, and trip cancellations.
18. Can on-demand insurance replace long-term insurance?
While on-demand insurance is ideal for short-term needs, it may not replace long-term coverage, which is essential for comprehensive protection.
19. Is on-demand insurance only available for individuals?
No, businesses also use on-demand insurance for temporary coverage related to events, projects, or specific risks.
20. How do I purchase on-demand insurance?
On-demand insurance can typically be purchased through digital platforms, such as mobile apps or websites, with minimal paperwork and immediate coverage activation.