Disability Insurance Global Market Opportunities and Strategies to 2033

This report describes and explains the disability insurance market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global disability insurance market reached a value of nearly $3.7 billion in 2023, having grown at a compound annual growth rate (CAGR) of 8.93% since 2018. The market is expected to grow from $3.7 billion in 2023 to $6.36 billion in 2028 at a rate of 11.45%. The market is then expected to grow at a CAGR of 12.00% from 2028 and reach $11.21 billion in 2033.

Growth in the historic period resulted from increased number of insurance claims, increasing healthcare costs, government initiatives and efforts towards insurance reforms and rise in disposable income. Factors that negatively affected growth in the historic period include increased focus on self-insurance and lack of awareness.

Going forward, the rising prevalence of chronic diseases, strong economic growth in emerging markets, increasing aging population and rising urbanization will drive the market. Factors that could hinder the growth of the disability insurance market in the future include growing income inequality.

The disability insurance market is segmented by insurance type into employer supplied disability insurance, individual disability insurance, high limit disability insurance, business overhead expense disability insurance and other insurance types. The employer supplied disability insurance market was the largest segment of the disability insurance market segmented by insurance type, accounting for 43.49% or $1.6 billion of the total in 2023. Going forward, the business overhead expense disability insurance segment is expected to be the fastest growing segment in the disability insurance market segmented by insurance type, at a CAGR of 13.92% during 2023-2028.

The disability insurance market is segmented by coverage type into short term disability insurance and long term disability insurance. The long term disability insurance market was the largest segment of the disability insurance market segmented by coverage type, accounting for 62.06% or $2.29 billion of the total in 2023. Going forward, the short term disability insurance segment is expected to be the fastest growing segment in the disability insurance market segmented by coverage type, at a CAGR of 12.87% during 2023-2028.

The disability insurance market is segmented by end user into government, enterprise and individual. The enterprise market was the largest segment of the disability insurance market segmented by end user, accounting for 51.06% or $1.88 billion of the total in 2023. Going forward, the individual segment is expected to be the fastest growing segment in the disability insurance market segmented by end user, at a CAGR of 12.99% during 2023-2028.

North America was the largest region in the disability insurance market, accounting for 45.00% or $1.66 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the disability insurance market will be Asia-Pacific and Africa, where growth will be at CAGRs of 14.39% and 13.61% respectively. These will be followed by the Middle East and South America, where the markets are expected to grow at CAGRs of 13.09% and 12.61% respectively.

The global disability insurance market is concentrated, with large players operating in the market. The top ten competitors in the market made up to 40.4% of the total market in 2022. Aflac Incorporated was the largest competitor with a 5.1% share of the market, followed by Northwestern Mutual with 4.9%, AIA Group Limited with 4.7%, Ping An Insurance Company of China, Ltd. with 4.3%, China Life Insurance Company Limited with 4%, Mutual of Omaha with 3.8%, Aviva plc with 3.5%, Guardian Life Insurance Company of America with 3.4%, MetLife Services and Solutions, LLC with 3.4% and Allianz with 3.3%.

The top opportunities in the disability insurance market segmented by end user will arise in the employer supplied disability insurance segment, which will gain $1.14 billion of global annual sales by 2028. The top opportunities in the disability insurance market segmented by coverage type will arise in the long term disability insurance segment, which will gain $1.49 billion of global annual sales by 2028. The top opportunities in the disability insurance market segmented by insurance type will arise in the enterprise segment, which will gain $1.32 billion of global annual sales by 2028. The disability insurance market size will gain the most in the USA at $884.4 million.

Market-trend-based strategies for the disability insurance market include focus on integrating new technologies to automate insurance claims, use of AI-based insurance platforms to enhance efficiencies, focusing on providing new disability income policies, deploying advanced disability income protection plans, focus on offering new short-term disability insurance and adopting a strategic partnership approach.

Player-adopted strategies in the disability insurance market include focus on expanding business capabilities through new policy launches and focus on expanding insurance business through technological empowerment.

To take advantage of the opportunities, the analyst recommends the disability insurance companies to focus on technological advancements to drive efficiency in disability insurance operations, focus on AI-driven platforms to enhance efficiency in disability insurance operations, focus on innovative disability income policies to expand market reach, focus on tailored disability income protection plans to enhance market presence, focus on offering flexible short-term disability insurance solutions, focus on business overhead expense disability insurance segment, focus on short term disability insurance segment, expand in emerging markets, focus on strategic partnerships to enhance service offerings, focus on developing competitive pricing strategies, continue to use B2B promotions, focus on digital marketing and educational campaigns and focus on enterprise and individual market segments.