DUBLIN--(BUSINESS WIRE)--The "Accidental Death Insurance Global Market Report 2020" report has been added to ResearchAndMarkets.com's offering.
The global accidental death insurance market was valued at about $60.8 billion in 2018 and is expected to grow to $68.59 billion at a CAGR of 3.1% through 2022.
The accidental death insurance market consists of sales of accidental death insurance. The financial institutions pays a lump sum amount to the beneficiary in case of an 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 North American market is the largest market for Accidental Death Insurance and is expected to continue to be the largest market during the forecast period.
The accidental death insurance market is being driven by 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 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 Centers for Disease Control and Prevention (CDC), accidental deaths in the US reached a historical high in 2017, increasing by 5.3% from 2016. In 2017, more than 150,000 people were killed in traffic accidents in India. This high number of fatal accidents are 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 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 published in 2016, 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 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 block chain technology in life insurance products and processes. Block chain technology is a system which 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 block chain based insurance service which 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 EU from data breaches, and life insurance companies are fined upto 4% of their annual turnover for 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. In 2016, 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.
In July 2018, AIG acquired Validus Holdings for $5.5 billion. The acquisition is expected to strengthen AIG's focus on expanding its life insurance and accidental death insurance products portfolio. Validus Holdings is a firm which provides insurance and reinsurance coverage, and also provides life insurance products including accidental death insurance.
Major players in the market are Allianz, Assicurazioni Generali, China Life Insurance, MetLife and Ping An Insurance.
For more information about this report visit https://www.researchandmarkets.com/r/km2erg