PUBLISHER: Grand View Research | PRODUCT CODE: 1114096
PUBLISHER: Grand View Research | PRODUCT CODE: 1114096
The global burial insurance market size is expected to reach USD 416.072 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 6.1% from 2022 to 2030. The industry is expected to grow over the forecast period owing to the rising awareness among the people. Furthermore, due to the rising awareness, companies are trying to enter the market through marketing strategies including providing various funeral insurance plans, which could attract a wide range of people. For instance, in Brazil, currently, there are different types of funeral insurance policies including preneed funeral insurance, final expense insurance, and burial insurance.
Furthermore, according to the FSCA's 2022 Financial Sector Outlook Study, in countries such as South Africa, around 60% of people reported the use of insurance products. Additionally, according to the report, insurance penetration, which is calculated by utilizing premiums as a percentage of GDP, which was 13.7% in 2020, placing it among the highest in the world and surpassing the U.K. and the U.S. This shows how well acceptable general insurance is among South Africans, which would help the industry expansion for burial insurance in various ways.
The population is aging in many wealthy nations and serving this expanding group requires insurers to concentrate on the best possible opportunities. They must, at least, adapt their services to better meet the needs of elderly persons, such as providing more complex and diverse payment choices for health insurance and making burial insurance a critical component of their plans. Being one of such companies to create a range of goods and services that customers can easily access in a seamless and integrated manner, whereby not only technological advancement is made for better accessibility, but also funeral costs are taken into account and may then be integrated into clients' current plans, will eventually result in the company gaining attention from end consumers, resulting in company revenue share growth.
For instance, Munich Re acquired tech company Relayr in 2018. Through this acquisition, the company hopes to achieve its goal of digitizing its existing business to provide a more comprehensive range of services. This could also help the company's other subsidiary, ERGO Group AG, which provides all types of insurance policies, including those that cover funeral expenses, ultimately indicating the insurer's way to bring in an upgrade in their current policy whereby digitization would help with the faster process to reach and process.
In order to take advantage of diverse sorts of services and technological capabilities needed for future success, forward-thinking insurers are widening their options and going beyond conventional vendors. To improve company position in the global market, these companies have used a variety of strategies, including partnerships, collaborations, product launches, joint ventures, and mergers & acquisitions. For instance, in December 2020, Chubb and Nubank through their strategic partnership intend to launch a digital life insurance product in Brazil. This service also covers funeral expenses. In addition, this launch has demonstrated the use of another distinct marketing tactic - product bundling to provide the individual with alluring offers like complete end-to-end coverage that covers funeral costs.