The flood insurance market in the Asia-Pacific (APAC) region is projected to grow at a compound annual growth rate (CAGR) of 19.7% from 2023 to 2032, driven by increasing awareness and rising demand for property protection. According to a report by Allied Market Research, this growth is reflective of broader global trends, where the flood insurance market is expected to expand by 15.6% between 2022 and 2032.
Key Drivers and Challenges
The market’s growth is being fueled by growing concerns over climate-related risks, increasing demand for property coverage, and supportive regulatory frameworks. However, high premium costs and a general lack of awareness about flood insurance remain significant challenges that could limit the market’s expansion.
Despite these obstacles, several factors present significant opportunities for growth. These include rapid urbanization, infrastructure development, and the increasing frequency of extreme weather events linked to climate change.
Market Segmentation and Forecasts
In 2022, building property coverage accounted for nearly two-thirds of the total market revenue and is expected to continue leading the market through 2032. This segment is largely driven by the heightened flood risks associated with climate change and regulatory requirements in flood-prone regions.
Personal contents coverage, which includes protection for items such as furniture and electronics, is anticipated to grow at a faster rate of 17.2% CAGR. As more people seek to safeguard their personal belongings, this segment is set to expand significantly.
While commercial flood insurance policies made up more than two-thirds of the market in 2022, the residential flood insurance segment is projected to experience the highest growth rate, at 18.2% over the forecast period. This growth is expected to be driven by government mandates and increasing awareness among homeowners about the need for flood insurance.
Related topics:
