PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1788223
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1788223
Global On-demand Insurance Market to Reach US$3.8 Billion by 2030
The global market for On-demand Insurance estimated at US$1.4 Billion in the year 2024, is expected to reach US$3.8 Billion by 2030, growing at a CAGR of 18.8% over the analysis period 2024-2030. Car Insurance, one of the segments analyzed in the report, is expected to record a 22.0% CAGR and reach US$1.2 Billion by the end of the analysis period. Growth in the Electronic Equipment Insurance segment is estimated at 16.0% CAGR over the analysis period.
The U.S. Market is Estimated at US$370.9 Million While China is Forecast to Grow at 25.9% CAGR
The On-demand Insurance market in the U.S. is estimated at US$370.9 Million in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$911.8 Million by the year 2030 trailing a CAGR of 25.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 14.7% and 17.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 15.8% CAGR.
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.
SCOPE OF STUDY:
The report analyzes the On-demand Insurance market in terms of units by the following Segments, and Geographic Regions/Countries:
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.
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