Global Liability Insurance Market Report and Forecast 2024-2032

Global Liability Insurance Market Outlook

The global liability insurance market size was approximately USD 282.10 billion in 2023. The market is further projected to grow at a CAGR of 5.7% between 2024 and 2032, reaching a value of around USD 467.24 billion by 2032.

Key Trends in the Market

Liability insurance provides financial protection for individuals or organisations if they are deemed legally responsible for causing harm or damage to another person or property. This type of insurance typically includes coverage for legal fees, medical costs, and other expenses associated with a liability claim.

Certain types of businesses, such as those involved in construction or transportation, may be legally required to carry liability insurance. Nevertheless, many choose to acquire liability insurance voluntarily as a safeguard against potential legal actions and financial liabilities. The costs of liability insurance fluctuate depending on the extent of coverage and the level of risk involved. It is, however, regarded as an essential form of insurance for both individuals and organisations.

• The liability insurance market growth can be attributed to the role of insurance in mitigating business risks, particularly in scenarios involving bodily injury due to faulty machinery or other unforeseen circumstances.

• Liability insurance aims to decrease out-of-pocket expenses for the insured. Besides, there is an increasing preference for umbrella liability insurance to address claims that may arise as part of regular business operations.

• One of the liability insurance market trends is the growing launch of digital insurance plans for use in small and medium-sized businesses. For instance, in August 2023, NEXT Insurance, a digital business insurer, launched a curated liability coverage for small businesses to safeguard them against unprecedented and significant losses.

Market Analysis

Based on coverage type, the market is segmented into general liability insurance, professional liability insurance, and insurance for directors and officers. On the basis of enterprise size, the market can be bifurcated into small and medium enterprise, and large enterprise.

Based on application, the liability insurance market segmentation includes commercial, and personal. The major regional markets for liability insurance are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global liability insurance market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• Axa SA

• Berkshire Hathaway Inc.

• Allianz Group 

• Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft 

• Zurich Insurance Group Ltd.

• Chubb Group Holdings Inc.

• Metlife Inc.

• American International Group, Inc.

• State Farm Mutual Automobile Insurance Company 

• IFFCO-Tokio General Insurance Company Limited 

• CNA Financial Corporation 

• Anthem Insurance Group, Inc.

• Others

Market Share by Coverage Type

General liability insurance policies account for a significant portion of the liability insurance market share. This can be attributed to the constant risk faced by policyholders in being held accountable for bodily injuries. This liability often involves the obligation to cover medical expenses and provide compensation to the injured party.

Medical liability insurance assists in covering medical expenses arising from accidents caused by the insured, and it also covers the costs of repairing damages resulting from such accidents. As a result, there has been a substantial increase in the demand for this insurance.

Market Share by Region

As per the liability insurance market analysis, North America is expected to witness a healthy growth during the forecast period. This can be attributed to heightened awareness among consumers in the U.S. and Canada regarding policy coverage and premium costs associated with liability insurance.

Additionally, the increasing incidence of accidents in factories involving manpower and the surging risk of accidents and bodily injuries to workers are prompting customers in the region to invest in public liability insurance for coverage against unforeseen events.

Competitive Landscape

Zurich Insurance Group Ltd., established in 1872, stands as one of the leading multi-line insurers catering to individuals and businesses across over 200 countries and territories. The company provides a diverse range of insurance plans encompassing categories such as car insurance, home insurance, travel insurance, life insurance, critical illness coverage, and more.

MetLife, Inc., established in 1868, stands as a prominent global provider of insurance, annuities, and employee benefit programmes. With a strong presence in the United States, Japan, Latin America, Asia, Europe, the Middle East, and Africa, MetLife, Inc. holds a leading position through its subsidiaries and affiliates.

IFFCO-Tokio General Insurance Company Limited, established in 2000, provides an extensive array of products across various lines of business, including car insurance, two-wheeler insurance, health insurance, travel insurance, and home insurance. It also holds the distinction of being the first company in India to underwrite mega policies.

Other market players operating in the global liability insurance market include Axa SA, Berkshire Hathaway Inc., Allianz Group, Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft, Chubb Group Holdings Inc., American International Group, Inc., State Farm Mutual Automobile Insurance Company, CNA Financial Corporation, and Anthem Insurance Group, Inc., among others.

Key Highlights of the Report