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On-Demand Insurance Market Forecast: Value Set To Climb From $7.24 Billion To $12.13 Billion
The on-demand insurance market has witnessed rapid expansion in recent years. This market is projected to increase from $6.31 billion in 2025 to $7.24 billion in 2026, achieving a compound annual growth rate (CAGR) of 14.8%. Historically, this growth can be attributed to factors such as the rise in mobile internet penetration, increasing demand for flexible insurance products, the early adoption of digital insurance platforms, the growing use of app-based services, and the expansion of the gig economy workforce.
The on-demand insurance market is projected to experience substantial growth in the next few years. Its valuation is expected to climb to $12.13 billion by 2030, achieving a compound annual growth rate (CAGR) of 13.8%. This anticipated growth throughout the forecast period is driven by factors such as the increasing adoption of embedded insurance solutions, a rise in investments in insurtech platforms, the broadening availability of micro-duration insurance products, a heightened demand for real-time risk assessment, and expanding regulatory support for digital insurance models. Furthermore, key trends identified for this period include the increasing utilization of usage-based insurance models, a greater integration of artificial intelligence for dynamic pricing, the wider deployment of mobile-first insurance platforms, an expansion of event-based coverage offerings, and an enhanced focus on instant claims processing.
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On-Demand Insurance Market Demand Drivers Opening New Revenue Streams
The expanding utilization of digital platforms is projected to boost the growth of the on-demand insurance market moving forward. Digital platforms encompass online frameworks that enable various services, including the procurement, administration, and customization of insurance policies. This rise in adoption is driven by increasing consumer demand for convenience, sustained economic growth, advancements in technology, and attractive pricing options. Digital platforms play a crucial role in the expansion of on-demand insurance by streamlining the purchase process, offering competitive prices, and instilling greater confidence in consumers regarding their insurance decisions. For instance, data published by the Bureau of the Census, a US-based Federal Statistical System agency, indicated that the first quarter 2024 e-commerce estimate grew 8.6% (±1.1%) from the first quarter of 2023, while total retail sales increased 1.5% (±0.5%) in the same period, with e-commerce sales constituting 15.9% of total sales in the first quarter of 2024. As a result, the increasing adoption of digital platforms is driving the expansion of the on-demand insurance market.
On-Demand Insurance Market Segments: Where Is Growth Concentrated?
The on-demand insurance market covered in this report is segmented –
1) By Coverage: Car Insurance, Home Appliances Insurance, Entertainment Insurance, Contractor Insurance, Electronic Equipment Insurance, Other Coverages
2) By Insurance: General Insurance, Cybersecurity Insurance, Other Insurances
3) By End-User: Individuals, Business
Subsegments:
1) By Car Insurance: Personal Car Insurance, Commercial Car Insurance
2) By Home Appliances Insurance: Kitchen Appliances Insurance, Home Electronics Insurance, HVAC Insurance
3) By Entertainment Insurance: Event Cancellation Insurance, Media & Film Production Insurance, Ticket Refund Insurance
4) By Contractor Insurance: General Liability Insurance, Workers’ Compensation Insurance, Professional Indemnity Insurance
5) By Electronic Equipment Insurance: Mobile Device Insurance, Laptop & Tablet Insurance, Wearable Technology Insurance
6) By Other Coverages: Travel Insurance, Health Insurance, Pet Insurance
On-Demand Insurance Market Trends Redefining Industry Growth
Leading companies in the on-demand insurance market are concentrating on developing novel products, such as comprehensive motor insurance systems based on mobile telematics. Their aim is to provide more customized and flexible coverage choices, leveraging real-time driving data for precise risk assessment, offering premiums tied to usage, and improving customer engagement. Mobile telematics is an app-driven solution that contributes to safer driving, transforming insurance, fleet management, and other areas. For instance, in July 2023, Zuno General Insurance (formerly known as Edelweiss General Insurance (EGI)), an India-based insurance firm, launched SWITCH. This platform utilizes mobile telematics and real-time driving data to activate coverage and calculate personalized premiums based on usage and driving behavior, thus delivering a flexible, usage-based insurance solution. This innovation promotes safe driving and challenges traditional motor insurance by introducing a personalized, data-driven, and customer-centric experience within the on-demand insurance market.
On-Demand Insurance Market Key Participants And Competitive Landscape
Major companies operating in the on-demand insurance market are Zego, Cuvva, Metromile, Getsafe, Trov, Sure, Slice Insurance, Thimble, Tapoly, SkyWatch, Lemonade, Next Insurance, Hippo, Root Insurance, Bought By Many, Marshmallow, Inshur, By Miles, Cover Genius, Urban Jungle, Hepster
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On-Demand Insurance Market Top Region By Revenue And Market Share
North America was the largest region in the on-demand insurance market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the on-demand insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.