Asia-Pacific disability insurance market to grow 13.5% yearly

It will likely be driven by rising awareness of income protection products.

Asia-Pacific’s disability insurance market is forecasted to register a compound annual growth rate of 13.5% from 2022 to 2031, according to Allied Market Research.

Globally, the sector is forecasted to register a CAGR of 11.2%. The industry bagged $3.3b in revenue last 2021, and is expected to reach $9.2b by 2031.

The report further said that the industry will likely be driven by rising awareness of income protection products and the growing adoption of digital tools and big data analytics in claims management. 

During the COVID-19 pandemic, insurers increasingly relied on data-driven algorithms to process claims and extract insights from real-time and historical information, which helped accelerate the industry’s growth.

Employer-supplied disability insurance accounted for the largest share of the market in 2021, representing more than one-third of global revenue, and is expected to maintain its lead through 2031. 

The business overhead expense disability insurance segment is forecast to post the fastest growth, with a projected CAGR of 14.8% during the period.

In terms of coverage type, long-term disability insurance held nearly 60% of the market in 2021 and is projected to continue leading over the next decade. Short-term disability insurance, however, is expected to grow the fastest, at a CAGR of 12.9%.