Fire Insurance Market Report 2026

The fire insurance market size has grown rapidly in recent years. It will grow from $89.52 billion in 2025 to $98.79 billion in 2026 at a compound annual growth rate (CAGR) of 10.4%. The growth in the historic period can be attributed to rising urbanization and property development, increasing awareness of risk protection, expansion of commercial insurance coverage, growth in industrial infrastructure, availability of diversified insurance products.

The fire insurance market size is expected to see rapid growth in the next few years. It will grow to $145.93 billion in 2030 at a compound annual growth rate (CAGR) of 10.2%. The growth in the forecast period can be attributed to increasing adoption of predictive risk analytics, rising demand for tailored insurance coverage, expansion of digital policy management platforms, growing focus on disaster resilience planning, increasing integration of iot-based risk monitoring. Major trends in the forecast period include increasing use of data-driven risk assessment models, rising adoption of digital insurance platforms, growing integration of AI-based claims processing, expansion of customized fire insurance policies, enhanced focus on property risk analytics.

A substantial increase in fire accidents is anticipated to drive the growth of the fire insurance market moving forward. A fire incident is characterized as a fire occurring on any property within the area. Many consumers, including both businesses and homeowners, are increasingly motivated to purchase fire insurance plans to safeguard themselves against potential financial losses resulting from damage to goods, property, and home contents due to fire incidents. For example, in July 2024, data released by the Home Office, a UK-based ministerial department, indicated that in the year ending March 2024, primary fires accounted for 45% of all fires, up from 37% the previous year. This included 38,886 building fires, which represented 6.5% of all incidents, 28% of all fires, and 63% of all primary fires. Therefore, the significant rise in fire accidents is driving the growth of the fire insurance market.

Major players in the fire insurance market are increasingly prioritizing the development of innovative solutions such as smart fire prevention technologies to lower fire risks and reduce the frequency and severity of insurance claims. Smart fire prevention technologies are advanced systems that leverage sensors, data analytics, and real-time monitoring to identify electrical or fire-related hazards at an early stage, helping to prevent fires, enhance safety, and limit property damage and insurance losses. For example, in June 2024, Westfield Insurance, a US-based property and casualty insurer, introduced a fire-prevention initiative in collaboration with Whisker Labs, a US-based sensor technology firm. Through this initiative, Westfield provides the Ting smart electrical hazard detection sensor along with three years of monitoring services at no cost. Ting is a plug-in device designed to identify electrical faults in a home’s wiring system, notify homeowners, and assist them in taking corrective measures to prevent potential electrical fires. Westfield aims to distribute Ting devices to 10,000 home and condominium customers in 2024, with plans to extend the program to more than 20,000 additional homeowners over the following three years. The initiative offers benefits such as lower fire risk, reduced claim volumes, improved home safety, proactive hazard identification, and stronger customer trust.

In October 2024, Cheche Group Inc., an auto insurance technology platform based in China, announced a partnership with Tokio Marine & Nichido Fire Insurance Co. Ltd. in China. The aim of this collaboration is to create specialized insurance products, services, and sales strategies that will enhance Cheche's insurance capabilities and broaden its market reach. Tokio Marine & Nichido Fire Insurance Co. Ltd., a Japan-based company, offers a variety of insurance services, including fire insurance.

Major companies operating in the fire insurance market are Amica Mutual Insurance Company, Allstate Insurance Company, Allianz SE, AXA SA, Assicurazioni Generali SpA, Liberty Mutual Insurance Group, Government Employees Insurance Company, Ping An Insurance Company of China Ltd., State Farm Mutual Automobile Insurance Company, United Services Automobile Association, Munich Re Group, Zurich Insurance Group, Aegon N.V., PNB MetLife India Insurance Company Limited, Aviva plc, Allied Trust Insurance Company, Prudential Financial Inc., New York Life Insurance Company, CNP Assurances SA, China Pacific Insurance (Group) Co. Ltd., Occidental Fire & Casualty Company of North Carolina.

North America was the largest region in the fire insurance market in 2025. Europe is expected to be the fastest-growing region in the fire insurance market report during the forecast period. The regions covered in the fire insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the fire insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The fire insurance market includes revenues earned by entities by providing fire insurance policies such as valued policy, specific policy, average policy, floating policy, comprehensive policy, and replacement policy. 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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