Accidental Death Insurance Global Market Report 2022

Major players in the accidental death insurance market are Allianz, Assicurazioni Generali, China Life Insurance, MetLife, PingAn, AXA, Sumitomo Life Insurance, Aegon, Dai-ichi Mutual Life Insurance, and CPIC.

The global accidental death insurance market is expected to grow from $62.82 billion in 2021 to $67.34 billion in 2022 at a compound annual growth rate (CAGR) of 7.2%. The market is expected to grow to $77.03 billion in 2026 at a compound annual growth rate (CAGR) of 3.4%.

The accidental death insurance market consists of sales of accidental death insurance.The financial institutions pay a lump sum amount to the beneficiary in case of accidental death, in addition to the standard benefit payable if the insured died of natural causes.

This type of insurance is often an addition or a clause connected to a life insurance policy.

The main products of accidental death insurance are personal injury claims, road traffic accidents, work accidents, and other products.Work accident insurance is a type of insurance that pays benefits to employees or their families who are injured or killed on the job.

Accidental death insurance is used for personal and enterprise applications. The products are distributed through direct marketing, bancassurance, agencies, e-commerce, and brokers.

North America was the largest region in the accidental death insurance market in 2021.Asia Pacific was the second largest market in accidental death insurance market.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The accidental death insurance market is being driven by the rising number of accidental deaths.Due to the rising number of deaths by accidents, there is an increase in awareness in the general public about the benefits of having accidental death insurance, and is driving them to opt for accidental death insurance policies, to safeguard their family’s income.

According to the Centers for Disease Control and Prevention (CDC), Unintentional injuries or accidents were the fourth biggest cause of death in the United States in 2020, accounting for around 6% of all deaths.In 2020, a projected 200,955 persons died as a result of unintentional injuries, with the elderly having the greatest death rates.

This high number of fatal accidents is driving the demand for accidental death insurance.

The accidental death insurance market is being restrained by a low awareness about life insurance including accidental death insurance.This results in a fewer number of people opting for accidental death insurance, especially in underdeveloped and developed countries.

For instance, according to a report by Insurance Regulatory and Development Authority, the life insurance penetration in India was just 3.69%. Even though the awareness levels have been increasing recently, they are still very low in some regions such as the African subcontinent and parts of Asia, thus restraining the market.

The companies in the accidental death insurance market are witnessing transformation due to the integration of blockchain technology in life insurance products and processes.Blockchain technology is a system that keeps a track of transactions done via cryptocurrencies and maintains it across several computers which are linked to each other.

This facilitates a transparent process for both the insurance companies and customers, thus enabling the removal of fraudulent claims and activities.In addition to that, claims can be processed quickly, and the process becomes more flexible.

For instance, Generali, a major life insurance firm, partnered with Accenture in 2019, to launch a new blockchain-based insurance service that saves time and reduces processing errors.

The accidental death insurance market is regulated by authorities such as The European Insurance and Occupational Pensions Authority (EIOPA) and the US National Association of Insurance Commissioners (NAIC).Life insurance companies in the European Union (EU) are required to follow the General Data Protection Regulation (GDPR) which creates guidelines on collecting and processing the personal data of individuals within the EU.

The goal of the GDPR is to protect all citizens of the EU from data breaches, and life insurance companies are fined up to 4% of their annual turnover for a data violation.In case of a data breach, customers are required to be notified within 72 hours after the company is aware of the breach.

The Insurance Regulatory and Development Authority of India (IRDAI) made modifications in its commission structure to introduce more consistent commissions to be paid on life insurance products.

The countries covered in the accidental death insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.