PUBLISHER: The Business Research Company | PRODUCT CODE: 1823057
PUBLISHER: The Business Research Company | PRODUCT CODE: 1823057
Personal loan credit insurance is a type of coverage designed to protect borrowers by ensuring their loan repayments are made if they face unforeseen circumstances such as death, disability, job loss, or serious illness. This insurance alleviates the financial strain on the borrower or their family by covering the remaining loan balance or monthly payments, preventing defaults, and offering peace of mind during challenging times.
The primary types of personal loan credit insurance include life insurance, disability insurance, involuntary unemployment insurance, and critical illness insurance. Life insurance is a financial product that provides a lump-sum payout to designated beneficiaries upon the insured individual's death. It includes various coverage options, such as full and partial coverage, and is distributed through channels such as banks, insurance companies, online brokers, financial institutions, and direct sales. This insurance type caters to a broad spectrum of end users, including individual borrowers, small business owners, corporate borrowers, financial institutions, and non-banking financial companies.
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 rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.
The personal loan credit insurance market research report is one of a series of new reports from The Business Research Company that provides personal loan credit insurance market statistics, including personal loan credit insurance industry global market size, regional shares, competitors with a personal loan credit insurance market share, detailed personal loan credit insurance market segments, market trends and opportunities, and any further data you may need to thrive in the personal loan credit insurance industry. This personal loan credit insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The personal loan credit insurance market size has grown strongly in recent years. It will grow from $15.27 billion in 2024 to $16.72 billion in 2025 at a compound annual growth rate (CAGR) of 9.5%. The growth observed during the historic period can be credited to a rise in financial awareness among individuals, an increased demand for financial security, growing unemployment rates and healthcare expenses, a surge in unsecured personal loans, and the expanding presence of online lending platforms.
The personal loan credit insurance market size is expected to see strong growth in the next few years. It will grow to $23.74 billion in 2029 at a compound annual growth rate (CAGR) of 9.2%. The forecast growth is expected to be driven by heightened financial awareness among borrowers, continued increases in unemployment and healthcare costs, the expansion of digital lending and online platforms, the growth of the gig economy with irregular income streams, and greater regulatory emphasis on consumer protection and transparency. Key trends anticipated during the forecast period include advancements in digital transformation and automation, the creation of personalized and flexible insurance products, innovations in data analytics for risk evaluation, broadening coverage to address emerging risks, and closer integration with fintech and digital lending platforms.
The rising financial literacy is anticipated to drive the expansion of the personal loan credit insurance market in the future. Financial literacy is defined as the ability of individuals to comprehend and apply various financial skills, such as budgeting, investing, and managing debt. This increase in financial literacy stems from the broadening of mandatory financial education in schools, which is growing as more states implement graduation requirements for personal finance courses. Financial literacy supports personal loan credit insurance by enabling consumers to understand and choose coverage that protects them from the risks of loan default. For example, in January 2025, the City of St George's, University of London, a UK-based research university, reported that financial literacy in the UK remains consistently low, with 39% of adults-about 20.3 million people-lacking confidence in managing money. Considerable disparities exist across gender, education, income, and ethnicity, with gaps reaching up to 45% when these demographic factors overlap. Notably, millennials show lower financial literacy than expected, while both younger and older age groups are particularly vulnerable to risks related to financial illiteracy. Consequently, the growing financial literacy is fueling the growth of the personal loan credit insurance market.
Leading companies in the personal loan credit insurance market are focusing on launching innovative solutions, such as digital lending insurance products, to simplify underwriting processes, improve customer experience, and broaden coverage accessibility through online platforms. Digital lending insurance products are insurance policies embedded within online lending platforms that offer borrowers protection against risks such as death, disability, or job loss, ensuring the continuity of loan repayments. For instance, in September 2023, TruStage Financial Group, a US-based financial services company, introduced Payment Guard Insurance, the first digital lending insurance product designed to safeguard borrowers against unexpected job loss or disability that could result in loan defaults. This insurance is directly integrated into the digital lending process, automatically covering borrowers as soon as their loans are funded at no extra cost or change to loan terms. It helps lenders reduce defaults, enhance loan portfolio performance, and increase borrower conversion rates, while providing borrowers peace of mind during financial difficulties. The product offers no-code integration, can be customized to lenders' budgets, and facilitates easy digital claims submission.
In June 2024, Senang.io, a Malaysia-based insurance platform offering loan protection insurance, partnered with GoodTech Information Systems to expand loan protection insurance in rural Philippines. This collaboration aims to provide tailored credit protection insurance products integrated with rural banks' loan services, improving financial security and access to microinsurance for rural Filipino communities, targeting over one million customers within the first year. GoodTech Information Systems is a Philippines-based provider of loan protection insurance products.
Major players in the personal loan credit insurance market are CNP Assurances, Tokio Marine Holdings, Zurich Insurance Group, Chubb Limited, AEGON N.V., Banco Bilbao Vizcaya Argentaria, QBE Insurance Group, Hanwha Life Insurance Company, National Bank of Canada, Securian Financial Group Inc., Great American Insurance Company, OneMain Financial Inc., TruStage Financial Group Inc., DZ Bank AG, Fortegra Credit Insurance Inc., GK Life Insurance Caribbean Limited, Randolph-Brooks Federal Credit Union, Dollar Bank Federal Savings Bank, Virginia Credit Union, Seoul Guarantee Insurance Company, Altra Federal Credit Union, and AIA Group.
North America was the largest region in the personal loan credit insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in personal loan credit insurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the personal loan credit insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The personal loan credit insurance market includes revenues earned by entities by providing services, such as term life insurance, employer-provided disability insurance, and redundancy insurance. The market value also includes the value of related financial products or riders sold by the service provider or bundled within the insurance plan, such as unemployment protection, accidental coverage, or payment holiday options.
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.
Personal Loan Credit Insurance 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 personal loan credit insurance 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 personal loan credit insurance ? 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 personal loan credit insurance 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.