Flood Insurance Market Report 2024

This Flood Insurance market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The flood insurance market size has grown exponentially in recent years. It will grow from $9.87 billion in 2023 to $11.92 billion in 2024 at a compound annual growth rate (CAGR) of 20.8%. The growth during the historic period can be attributed to an increase in the frequency of flood events, greater awareness of flood risks, rising property prices, increased public funding for flood protection, and more stringent insurance coverage requirements.

The flood insurance market size is expected to see exponential growth in the next few years. It will grow to $25.46 billion in 2028 at a compound annual growth rate (CAGR) of 20.9%. The projected growth during the forecast period can be attributed to the rising frequency of extreme weather events, increasing government regulations, greater investment in flood defense infrastructure, expanding insurance coverage options, and a growing number of flood insurance providers. Key trends expected to shape this period include the adoption of advanced flood risk assessment tools, the use of satellite imagery and remote sensing technologies, integration of climate change models, development of customizable flood insurance policies, and the implementation of automated claims processing systems.

The growing concerns about climate change and increasing flood risks are expected to drive the expansion of the flood insurance market. Climate change and rising flood risks are exacerbated by factors such as urbanization, deforestation, and inadequate drainage infrastructure. Flood insurance plays a crucial role in helping communities recover more quickly from flooding by providing essential funds for rebuilding and repairs, underscoring its importance. For example, in December 2023, the UK Health Security Agency reported that flood risks are projected to rise by 61% by 2050 under a moderate warming scenario (+2°C) and by 118% in a high warming scenario (+4°C) compared to current levels. Additionally, ReliefWeb reported in March 2023 that floods in Pakistan affected 33 million people in 2022, resulting in 1,739 deaths and causing economic damage estimated at $15 billion. Thus, the rising climate change impacts and increasing flood risks are fueling growth in the flood insurance market.

Leading companies in the flood insurance market are developing automated services to streamline the claims process and improve customer experience. Automated flood insurance services use technology to expedite and simplify insurance procedures, offering fast quotes, efficient policy management, and streamlined claims handling through data analytics and digital tools. For instance, in March 2024, Chubb, a Switzerland-based insurance company, introduced a self-service flood insurance system that provides quotes for low-hazard properties in under two minutes. Integrated with Chubb's Agent Portal and Masterpiece EZ Quote platform, this system uses advanced digital technology for greater efficiency. This innovation highlights Chubb’s proactive approach to addressing increasing flood risks by offering fast and comprehensive coverage options.

In June 2024, Zurich Insurance Company, also based in Switzerland, acquired a 70% stake in Kotak Mahindra General Insurance Company Limited for $670 million. This acquisition aims to enhance Zurich Insurance’s presence in the Indian market. Kotak Mahindra General Insurance, based in India, provides a wide range of insurance products and services, including flood insurance.

Major companies operating in the flood insurance market are Berkshire Hathaway Inc., Ping An Insurance Company of China Ltd., Allianz SE, Axa S.A., Munich Re Group, American International Group Inc., Liberty Mutual Insurance Company, Tokio Marine Holdings Inc., The Allstate Corporation, The Progressive Corporation, Swiss Reinsurance Company Ltd, Zurich Insurance Group Ltd, Chubb Limited, The Travelers Companies Inc., Sompo Holdings Inc., Hannover Rück SE, Mapfre SA, The Hartford Financial Services Group Inc., QBE Insurance Group Limited, Everest Re Group Ltd., CNA Financial Corporation, Markel Corporation, Assurant Inc., Arch Capital Group Ltd., Suncorp Group Limited.

North America was the largest region in the flood insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the flood insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the flood insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Flood insurance is a specialized property coverage designed to protect against financial losses caused by flooding. It helps cover the repair and replacement costs for property and personal belongings damaged by floods, offering financial protection, peace of mind, and fulfilling lender requirements for properties in flood-prone areas.

The main types of flood insurance are typically categorized into life insurance and non-life insurance, though in the context of flood insurance, the focus is more on non-life insurance. Non-life insurance covers building property and personal contents against flood damage. The coverage applies to both commercial and residential properties.

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

The flood insurance market includes revenues earned by entities by providing services such as policy underwriting, risk assessment, claims management, and premium collection. 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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