PUBLISHER: The Business Research Company | PRODUCT CODE: 1808750
PUBLISHER: The Business Research Company | PRODUCT CODE: 1808750
Financial protection encompasses a range of products and services aimed at safeguarding individuals, families, and businesses from financial risks and uncertainties. The primary goal is to mitigate financial risks and ensure financial stability in times of adversity.
Financial protection is categorized into long-term and short-term types. Long-term financial protection involves insurance and financial products designed to offer coverage and support over an extended period, often several years or more. This category includes various policy coverages such as payment protection and mortgage payment protection, tailored to different end-users, including men and women.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.
The financial protection market research report is one of a series of new reports from The Business Research Company that provides financial protection market statistics, including financial protection industry global market size, regional shares, competitors with a financial protection market share, detailed financial protection market segments, market trends and opportunities, and any further data you may need to thrive in the financial protection industry. This financial protection market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The financial protection market size has grown strongly in recent years. It will grow from $65.29 billion in 2024 to $69.39 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to regulatory reforms, demographic shifts, economic downturns, technological advancements, healthcare reform, increasing consumer awareness of financial risks.
The financial protection market size is expected to see strong growth in the next few years. It will grow to $88.47 billion in 2029 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to accelerated digital transformation, rising cyber threats, increased adoption of parametric insurance, expansion of ESG-focused products, integration of AI in insurance operations, growth in microinsurance for emerging markets. Major trends in the forecast period include the rise of personalized insurance solutions leveraging big data analytics, increasing focus on sustainable and ESG-aligned products, integration of blockchain for secure transactions, expansion of parametric insurance offerings, growth in cyber insurance to mitigate digital risks, adoption of AI for enhanced customer service.
The forecast of 6.3% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through less comprehensive coverage options, as financial vulnerability assessment tools and economic downturn prediction models, predominantly developed in Denmark and Finland, become cost-prohibitive for some insurers to implement. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The growing volume of digital financial transactions is expected to drive the expansion of the financial protection market in the future. Digital financial transactions refer to monetary exchanges and activities conducted electronically, typically through online platforms, mobile devices, or other digital channels. The rise in digital financial transactions is fueled by the widespread adoption of digital banking services, which enhance the convenience, accessibility, and efficiency of monetary exchanges. Financial protection plays a key role in securing these digital transactions by utilizing advanced algorithms to detect and prevent fraudulent activities. For example, in March 2024, the GSM Association, a UK-based non-profit industry organization, reported that global mobile money accounts reached 1.75 billion in 2023, marking a 12% increase from 2022. The total transaction volume for mobile money services grew to 85 billion, representing a 23% year-over-year increase. Furthermore, the average revenue per user in the mobile money sector saw a significant rise from $2.2 in September 2022 to $3.2 in June 2023, reflecting a 40% increase and signaling a trend toward smaller, more frequent transactions as the industry continues to mature. Therefore, the increasing volume of digital financial transactions is fueling the growth of the financial protection market.
Leading companies in the financial protection market are developing innovative solutions, such as all-in-one financial protection packages, to enhance customer experience, streamline processes, and offer comprehensive coverage for various financial risks. An all-in-one financial protection solution integrates multiple safeguards, including insurance, investment, and risk management, into a single service. For example, in February 2023, Guardian Life Insurance Company, a US-based insurance provider, introduced SafeGuard360. This solution offers a broad range of insurance products, including life insurance, disability income insurance, and critical illness coverage. SafeGuard360 aims to provide policyholders with a comprehensive safety net, ensuring protection across various aspects of their financial lives and offering peace of mind amid life's challenges.
In April 2024, Aviva plc, a UK-based insurance company, acquired AIG Life Limited (AIG Life UK) from Corebridge Financial Inc., a subsidiary of American International Group Inc., for £453 million ($584.91 million). This acquisition is part of Aviva's strategy to integrate AIG Life UK's innovative solutions and strong distribution partnerships, particularly targeting the SME and high-net-worth segments. AIG Life Limited (AIG Life UK) is a UK-based life insurance provider known for its range of life insurance products and financial protection services.
Major companies operating in the financial protection market are Ping An Insurance (Group) Company of China Ltd., Cigna Corporation, Allianz SE, MetLife Inc., Dai-ichi Life Holdings Inc., China Pacific Insurance (Group) Co. Ltd., Nationwide Mutual Insurance Company, Prudential Financial Inc., American International Group, Tokio Marine Holdings Inc., Zurich Insurance Group, Sompo Holdings Inc., Mapfre S.A., Hartford Financial Services Group Inc., AIA Group Limited, Aflac Incorporated, Lincoln National Corporation, Sun Life Financial Inc., Principal Financial Group, Samsung Life Insurance, Manulife Financial Corporation, FWD Group, Great-West Lifeco Inc., Legal & General Group plc, Standard Life Aberdeen plc, Aviva plc
North America was the largest region in the financial protection market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the financial protection market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the financial protection market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The financial protection market includes revenues earned by entities through life insurance, health insurance, property insurance, and related financial planning, investment advisory, and retirement planning services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Financial Protection Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on financial protection market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for financial protection ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The financial protection market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.