Disability insurance market has been estimated to reach $9.2 billion by 2031, growing at a compound annual growth rate, CAGR of 11.2 per cent from 2022 to 2031.
The marketed was valued at $3.3 billion in 2021.
Disability insurance, often called DI or disability income insurance, or income protection, is a form of insurance that insures the beneficiary’s earned income against the risk that a disability creates a barrier for completion of core work functions. In addition, those whose employers do not provide benefits, and self-employed individuals who desire disability coverage, may purchase policies themselves.
Moreover, premiums and available benefits for individual coverage vary considerably between companies, occupations, states, and countries. In general, premiums are higher for policies that provide more monthly benefits, offer benefits for longer periods of time, and start payments of benefits more quickly following a disability claim.
Rising awareness about the benefits of disability insurance policies and tax benefits under various sections of the income tax act is boosting the growth of the global disability insurance market. In addition, development of new offers and schemes by insurance companies is positively impacts growth of the disability insurance market.
However, lack of awareness among the customers is hampering the disability insurance market growth. On the contrary, increasing government support for medical and health insurance is expected to offer remunerative opportunities for expansion of the disability insurance market during the forecast period.