On-demand Insurance - Global Stategic Business Report

The global market for On-demand Insurance was estimated at US$1.4 Billion in 2024 and is projected to reach US$3.8 Billion by 2030, growing at a CAGR of 18.8% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the On-demand Insurance market.

Global On-Demand Insurance Market - Key Trends & Drivers Summarized

Why Is On-Demand Insurance Reshaping the Traditional Insurance Model?

On-demand insurance is revolutionizing the way individuals and businesses engage with risk coverage by offering flexible, usage-based, and real-time insurance policies that can be activated or deactivated as needed. Unlike traditional annual plans, on-demand insurance models are designed for instant access and micro-duration coverage - ranging from minutes to days - tailored to specific assets, events, or activities. This format aligns with evolving consumer lifestyles and the gig economy, where short-term travel, freelance work, shared mobility, and irregular asset usage are increasingly common. Enabled through digital platforms and mobile apps, users can insure a bicycle for a day, a drone for a weekend, or a ride-share gig for a few hours - directly from their smartphones, with no intermediaries involved. This immediacy and customization resonate with digital-first consumers who demand transparency, control, and personalized experiences. The model also caters to underinsured or previously uninsured segments by lowering entry barriers through pay-as-you-go pricing. As insurers seek to improve customer acquisition and retention while addressing changing risk behavior, on-demand insurance is emerging as a disruptive force that challenges the rigidity of traditional policies and unlocks new revenue streams in underserved and emerging risk categories.

How Are Technology and Digital Platforms Powering On-Demand Insurance Innovation?

The rise of on-demand insurance is deeply tied to advancements in digital infrastructure, data analytics, and embedded insurance technologies. Mobile apps and API-driven platforms allow insurers to offer policies that are activated with just a few taps, integrated seamlessly into lifestyle apps, e-commerce portals, travel booking engines, or gig work platforms. These digital touchpoints enable contextual insurance offerings - such as flight delay protection when booking travel or hourly liability coverage for freelance work - driving higher conversion rates and relevance. Machine learning and behavioral data are being leveraged to assess risk dynamically and personalize premiums in real time, increasing underwriting accuracy and optimizing pricing. Blockchain and smart contract technologies are also being explored to automate claims processing and enable instant payouts, adding to the appeal of speed and simplicity. Insurtech startups are at the forefront of this transformation, offering digital-native platforms with frictionless onboarding, chatbot assistance, and automated policy management, while traditional insurers are entering the space via partnerships, white-label solutions, or in-house digital units. This technological foundation is not only making insurance more accessible and convenient but also enabling mass customization, which is key to the success and scalability of on-demand insurance models.

Can Evolving Consumer Expectations and Behavior Sustain Long-Term Growth for On-Demand Insurance?

Changing consumer behavior is one of the most powerful catalysts behind the growing traction of on-demand insurance. The modern consumer expects immediate, personalized, and intuitive service experiences, influenced by the convenience and control offered by platforms like Netflix, Uber, or Airbnb. Insurance is no exception. Millennials and Gen Z, in particular, are less inclined to engage with traditional insurance agents or commit to long-term policies, especially for assets or activities they use irregularly. On-demand insurance perfectly aligns with this mindset by offering self-service, bite-sized coverage without the burden of annual premiums or paperwork. The rise of asset-light lifestyles - such as car-sharing, co-living, gig work, and remote freelancing - is reinforcing the need for flexible protection that mirrors real-world usage patterns. Furthermore, the post-pandemic acceleration in digital adoption has made consumers more comfortable with online financial services, further boosting the acceptance of app-based and instant insurance products. Education and transparency tools embedded in digital platforms are demystifying policy terms and making risk protection more approachable for first-time buyers. As insurers become more adept at leveraging customer data and behavioral analytics, the ability to deliver hyper-personalized, just-in-time insurance products will only grow - fostering stronger engagement and driving sustained market expansion.

What’s Driving the Rapid Growth of the On-Demand Insurance Market Across Segments?

The growth in the on-demand insurance market is driven by several factors rooted in technological innovation, shifting consumer dynamics, new usage patterns, and emerging risk verticals. The gig economy is a key driver, as millions of freelancers, delivery riders, and ride-share drivers require short-term, task-specific insurance coverage not addressed by traditional models. Similarly, rising consumer engagement with digital platforms - from travel and event planning to equipment rental and shared mobility - creates demand for integrated, time-bound insurance add-ons that enhance user trust and reduce liability exposure. Insurtech disruptors are driving the market forward with agile platforms, real-time underwriting, and embedded distribution models, while traditional insurers are following suit by digitizing offerings and creating hybrid channels. The increasing importance of usage-based coverage in niche categories - like drone operations, pet sitting, vacation homes, or personal electronics - has expanded the addressable market significantly. In addition, the proliferation of smartphones and mobile wallets has made it easier than ever to purchase and manage insurance on the go. Regulatory shifts in many regions are also opening the door for more flexible, digital-native policies, enabling insurers to explore new product formats with reduced friction. These trends, combined with a heightened awareness of risk in a post-COVID world, are fueling broad-based growth in the global on-demand insurance market and positioning it as one of the most agile, user-centric segments in the broader insurance landscape.

Report Scope

The report analyzes the On-demand Insurance market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments: Coverage (Car Insurance, Electronic Equipment Insurance, Home Appliances Insurance, Entertainment Insurance, Contractor Insurance, Other Coverages); End-Use (Businesses End-Use, Individuals End-Use)

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Car Insurance segment, which is expected to reach US$1.2 Billion by 2030 with a CAGR of a 22.0%. The Electronic Equipment Insurance segment is also set to grow at 16.0% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $370.9 Million in 2024, and China, forecasted to grow at an impressive 25.9% CAGR to reach $911.8 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global On-demand Insurance Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global On-demand Insurance Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global On-demand Insurance Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Akulaku, Bestow Inc., Clearcover Inc., Cover Genius, Cuvva Ltd. and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Select Competitors (Total 44 Featured):

• Akulaku
• Bestow Inc.
• Clearcover Inc.
• Cover Genius
• Cuvva Ltd.
• Digit Insurance
• Ethos Technologies Inc.
• Getsafe GmbH
• Hippo Insurance
• Hugo Insurance
• Lemonade Inc.
• Luko
• ManyPets
• Metromile Inc.
• Next Insurance Inc.
• Policybazaar
• Root Insurance Company
• Slice Labs Inc.
• Trov Inc.
• Zego Ltd.

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What’s Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry