
Global Short-Term Insurance Market Insights, Size, and Forecast By Customer Type (Individuals, Families, Businesses), By Insurance Type (Travel Insurance, Health Insurance, Vehicle Insurance, Pet Insurance), By Coverage Type (Comprehensive, Third Party, Basic Coverage), By Policy Duration (Single Trip, Annual Multi-Trip, Fixed Term), By Distribution Channel (Direct Sales, Brokers, Online Platforms, Banks), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Key Companies, Competitive Analysis, Trends, and Projections for 2026-2035
Key Market Insights
Global Short-Term Insurance Market is projected to grow from USD 118.5 Billion in 2025 to USD 241.7 Billion by 2035, reflecting a compound annual growth rate of 6.4% from 2026 through 2035. This market encompasses insurance policies designed to provide coverage for a limited period, typically less than one year, addressing immediate and temporary risks across various sectors. These policies are crucial for mitigating financial losses arising from unforeseen events such as accidents, theft, travel mishaps, or short term health issues. The market is primarily driven by an increasing awareness of risk management among individuals and businesses, coupled with a rising disposable income globally that allows for greater investment in protective measures. Urbanization trends, a growing middle class in emerging economies, and the increasing frequency of natural disasters further amplify the demand for short-term insurance products. The convenience and flexibility offered by these policies, often available through digital platforms, are also significant drivers. However, market growth is somewhat restrained by regulatory complexities that vary significantly across different regions, intense price competition among providers, and a general lack of consumer understanding regarding the nuances of various short-term insurance offerings. Economic downturns can also lead to reduced discretionary spending on insurance, impacting market expansion. Despite these challenges, the market presents significant opportunities through product innovation, particularly in areas like usage based insurance and parametric insurance, and through strategic partnerships with other industries to create bundled offerings.
Global Short-Term Insurance Market Value (USD Billion) Analysis, 2025-2035

2025 - 2035
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North America stands as the dominant region in the global short-term insurance market. This dominance is attributable to a mature insurance landscape, high insurance penetration rates, robust regulatory frameworks that foster consumer trust, and a technologically advanced infrastructure that supports efficient distribution and claims processing. The region also benefits from a high level of economic activity and a consumer base that is generally proactive in seeking financial protection. Conversely, Asia Pacific is projected to be the fastest growing region, driven by rapid economic development, a burgeoning middle class, increasing internet penetration, and a growing understanding of insurance benefits. Governments in countries within Asia Pacific are also playing a crucial role by promoting insurance awareness and implementing supportive regulatory policies, further fueling market expansion. The region’s large population base and evolving risk landscape, including susceptibility to natural catastrophes, create a fertile ground for the adoption of short-term insurance solutions.
The Vehicle Insurance segment leads the market, reflecting the widespread ownership of vehicles globally and the mandatory nature of vehicle insurance in many countries. This segment benefits from continuous sales of new and used vehicles, along with evolving regulatory requirements for coverage. Key players in this competitive market include State Farm, Munich Re, Zurich Insurance Group, QBE Insurance, Allianz, AIG, Chubb, The Hartford, AXA, and Sompo Japan Insurance. These companies are actively engaged in strategic initiatives such as expanding their digital distribution channels to enhance accessibility and customer experience, investing in data analytics and artificial intelligence for personalized product offerings and more efficient claims processing, and forging partnerships to broaden their market reach. Product diversification, competitive pricing strategies, and a strong focus on customer retention through superior service are also central to their competitive strategies. These efforts aim to capitalize on emerging opportunities and navigate the evolving landscape of the global short-term insurance market.
Quick Stats
Market Size (2025):
USD 118.5 BillionProjected Market Size (2035):
USD 241.7 BillionLeading Segment:
Vehicle Insurance (45.2% Share)Dominant Region (2025):
North America (36.8% Share)CAGR (2026-2035):
6.4%
What is Short-Term Insurance?
Short-Term Insurance provides financial protection against specific risks for a limited period, typically a year or less. It covers unforeseen events that may result in loss or damage to assets, rather than long-term life events. Key categories include motor vehicle, household contents, property, and travel insurance. Policyholders pay premiums for coverage against perils like theft, fire, accidents, or natural disasters. This type of insurance aims to return the insured to their pre loss financial position, covering the cost of repairs, replacement, or medical expenses within defined limits. Its significance lies in mitigating immediate financial burdens and promoting peace of mind.
What are the Trends in Global Short-Term Insurance Market
Embedded Insurance Everywhere
Parametric Protection Proliferates
AI Driven Personalized Policies
Gig Economy Coverage Innovations
Embedded Insurance Everywhere
Insurers are integrating coverage directly into third party products and services at the point of sale. This makes protection seamless and convenient for customers, often unnoticed until needed. Think flight cancellation insurance offered when booking a ticket, or product warranties appearing during an online purchase. This trend leverages data and technology to embed tailored, short term insurance solutions into everyday transactions, increasing accessibility and distribution across various industries.
Parametric Protection Proliferates
Insurers increasingly adopt data driven parametric solutions, shifting from indemnity based policies. These innovate products offer swift, predefined payouts triggered by measurable external events like hurricanes or floods, rather than traditional loss assessment. This simplifies claims and enhances transparency. Parametric protection expands into diverse sectors, providing quicker financial relief and better risk management for businesses and individuals facing specific, quantifiable perils. Its proliferation reflects growing demand for agile, efficient coverage.
AI Driven Personalized Policies
Insurers increasingly leverage AI to craft bespoke short term policies. Algorithms analyze vast client data, from travel history to health, to offer hyper personalized coverage options and pricing. This optimizes risk assessment, enhances customer satisfaction with tailored products, and streamlines the underwriting process, moving away from generic offerings towards highly individualized insurance solutions.
Gig Economy Coverage Innovations
Insurers are developing flexible, on demand, and usage based policies tailored for gig workers. This includes pay per task or per hour coverage, often integrated with platform APIs. Innovations also span bundled benefits like health and life, along with digital claims and underwriting, simplifying access for this dynamic workforce.
What are the Key Drivers Shaping the Global Short-Term Insurance Market
Digital Transformation and Insurtech Innovation
Growing Demand for Personalized and On-Demand Coverage
Increased Risk Awareness and Volatility (e.g., climate, health)
Expansion of Emerging Markets and Middle-Class Disposable Income
Digital Transformation and Insurtech Innovation
Insurers are adopting digital technologies to streamline operations, enhance customer experience, and develop new products. This transformation involves artificial intelligence, big data analytics, and automation, driven by consumer demand for personalized, on demand insurance and competition from agile insurtech startups. Innovation in this space is crucial for market growth and competitive advantage.
Growing Demand for Personalized and On-Demand Coverage
Customers increasingly seek tailored insurance solutions that match their unique lifestyles and immediate needs. They desire flexibility to purchase coverage for specific events or short durations, like travel, a new gadget, or a temporary health requirement. This shift drives insurers to offer innovative, customizable products accessible instantly through digital channels, moving away from traditional long-term policies and catering to individual preferences for on-demand protection.
Increased Risk Awareness and Volatility (e.g., climate, health)
Greater understanding of climate change and health crises heightens public concern about future risks. This awareness leads individuals and businesses to seek more insurance protection against potential losses. Increased volatility from these events makes future outcomes less predictable for insurers, potentially impacting pricing and coverage availability. Demand for insurance solutions mitigating these emerging risks grows significantly.
Expansion of Emerging Markets and Middle-Class Disposable Income
Expanding middle-class populations in emerging markets mean more individuals with disposable income. This growing affluence fuels demand for short-term insurance products like health, property, and travel, as people seek to protect their new assets and lifestyles. Increased purchasing power drives market growth.
Global Short-Term Insurance Market Restraints
Regulatory Fragmentation Hampers Global Expansion
Varying national regulations create significant hurdles for insurers seeking international growth. Companies face diverse licensing requirements, capital rules, and policy stipulations across jurisdictions. This complex patchwork necessitates tailored approaches for each market, increasing operational costs and compliance burdens. Inconsistent regulatory frameworks impede standardization of products and processes, hindering economies of scale. The lack of a unified global approach slows market entry, limits cross-border innovation, and ultimately restricts insurers ability to expand efficiently worldwide.
Cybersecurity Threats Undermine Consumer Trust and Market Stability
Cyberattacks on insurers erode consumer confidence in protecting personal data and financial assets. Breaches expose sensitive information, deterring new policy uptake and increasing customer churn. This distrust destabilizes the market, potentially leading to reputational damage, regulatory scrutiny, and decreased profitability for short term insurance providers globally.
Global Short-Term Insurance Market Opportunities
Agile Insurance Solutions for the Global Gig Economy and Remote Workforces
The global gig economy and remote workforces present a major opportunity for short term insurance. These dynamic segments require flexible, on demand, and customizable solutions for income protection, liability, and health, distinct from traditional policies. Agile insurance platforms can offer micro insurance and modular policies that adapt seamlessly to fluctuating work patterns and diverse global needs. This addresses a significantly underserved market by providing crucial, tailored protection that empowers the modern workforce's dynamic professional and personal lives.
Hyper-Personalized Travel Insurance for Dynamic Itineraries and Experiential Tourism
Modern travelers demand flexible, unique experiences. This offers a huge opportunity for insurers to provide hyper personalized short term policies. Coverage can dynamically adapt to changing itineraries and specific experiential activities, moving beyond generic plans. This granular approach delivers precise protection for niche segments like adventure tourism, cultural immersion, or wellness retreats. By leveraging data, insurers can offer on demand, tailored coverage that truly meets individual needs. This fosters greater customer loyalty and expands market share within the rapidly evolving global tourism sector.
Global Short-Term Insurance Market Segmentation Analysis
Key Market Segments
By Insurance Type
- •Travel Insurance
- •Health Insurance
- •Vehicle Insurance
- •Pet Insurance
By Distribution Channel
- •Direct Sales
- •Brokers
- •Online Platforms
- •Banks
By Customer Type
- •Individuals
- •Families
- •Businesses
By Policy Duration
- •Single Trip
- •Annual Multi-Trip
- •Fixed Term
By Coverage Type
- •Comprehensive
- •Third Party
- •Basic Coverage
Segment Share By Insurance Type
Share, By Insurance Type, 2025 (%)
- Vehicle Insurance
- Health Insurance
- Travel Insurance
- Pet Insurance

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Why is Vehicle Insurance dominating the Global Short-Term Insurance Market?
Vehicle Insurance commands the largest market share primarily due to widespread regulatory requirements for compulsory coverage in many countries. The continuous growth in global vehicle ownership, combined with the recurring need for protection against accident related liabilities and damages, ensures consistent demand from both individual consumers and corporate entities. This universal necessity for vehicle protection firmly establishes its leadership within the short term insurance landscape.
How are diverse customer types influencing demand for short term insurance products?
Customer type significantly fragments the short term insurance market, with varying needs dictating product development. Individuals often seek coverage for travel, health, or personal vehicles, prioritizing convenience and affordability. Families frequently require broader protection encompassing multiple individuals or assets. Businesses, conversely, demand tailored solutions for their fleets, employee travel, or operational risks, driving specialized policy offerings and distinct distribution approaches to meet complex corporate requirements.
What role do distribution channels play in the accessibility and reach of short term insurance?
Distribution channels are critical in connecting providers with diverse customer segments. While traditional brokers offer personalized advice and manage complex policies, especially for businesses, direct sales ensure brand loyalty and streamline the customer journey. Online platforms provide unparalleled convenience and price comparison for individual consumers seeking quick, often standardized, policies like travel or basic vehicle insurance, reflecting a growing consumer preference for digital interactions and immediate access.
What Regulatory and Policy Factors Shape the Global Short-Term Insurance Market
Global short term insurance navigates a fragmented yet converging regulatory landscape. Key drivers include robust consumer protection frameworks ensuring fair practices and transparent product offerings. Solvency capital requirements remain paramount across jurisdictions to maintain financial stability. Data privacy laws like GDPR significantly impact information handling. Regulators increasingly address digitalization and InsurTech innovations, often through sandboxes or specific guidelines balancing growth with oversight. Anti money laundering and counter terrorism financing compliance are universal obligations. Emerging environmental social and governance factors are beginning to influence policy and investment decisions, particularly in developed markets. This necessitates careful navigation for international insurers.
What New Technologies are Shaping Global Short-Term Insurance Market?
AI driven analytics and machine learning are revolutionizing short term insurance by enabling hyper personalized policies and automated claims processing. The Internet of Things allows for real time risk assessment, particularly in telematics for auto and smart home devices for property. Blockchain technology is enhancing data security and facilitating microinsurance models, improving accessibility. Insurtech platforms are streamlining customer journeys from purchase to payout, fostering on demand and embedded insurance solutions. Parametric insurance offers rapid, trigger based payouts for events like travel delays or natural disasters. These innovations are reshaping risk assessment, distribution, and customer engagement, fueling significant market expansion and operational efficiencies across global short term insurance.
Global Short-Term Insurance Market Regional Analysis
Global Short-Term Insurance Market
Trends, by Region

North America Market
Revenue Share, 2025
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North America dominates the global short-term insurance market with a significant 36.8% share, driven by a mature market and high insurance penetration. The US and Canada are key contributors, benefiting from robust regulatory frameworks, diverse product offerings, and strong consumer awareness regarding the importance of financial protection. Economic stability and disposable income further fuel demand for various short-term insurance products, including property & casualty, health, and travel. Innovation in digital distribution and personalized solutions also contributes to sustained growth across the region.
Europe, a mature and competitive short-term insurance market, faces varied regional dynamics. Western Europe sees saturation and consolidation, with digital innovation and personalized products driving growth amid low-interest rates. Southern Europe experiences higher growth potential, often linked to economic recovery and increased insurance penetration. Eastern Europe presents an expanding market, albeit with smaller average premium sizes, driven by rising disposable incomes and developing regulatory frameworks. Nordic countries are leaders in digitalization and sustainable insurance. Overall, the region grapples with an aging population, climate change impact, and evolving regulatory landscapes, pushing insurers towards greater efficiency and product innovation.
The Asia Pacific region is the fastest-growing in the global short-term insurance market, exhibiting an impressive 11.2% CAGR. This surge is fueled by rapid economic expansion, increasing urbanization, and a burgeoning middle class across countries like China, India, and Indonesia. Regulatory support and growing awareness of insurance benefits further stimulate demand. Product innovation, particularly in digital distribution and microinsurance, is key to reaching underserved populations. Natural disaster prevalence also drives demand for property and casualty coverage, making it a dynamic and opportunity-rich market.
Latin America's short-term insurance market is characterized by moderate growth, heavily influenced by economic stability and regulatory reforms. Brazil, Mexico, and Chile are regional leaders, driving demand for property, casualty, and health insurance. Political uncertainties and currency fluctuations pose significant challenges, impacting premium growth and profitability. Digitalization is a key trend, with Insurtech startups emerging to cater to underserved populations and improve claims processing. While penetration remains lower than in developed markets, increasing awareness of risk protection, coupled with rising disposable incomes, points to a promising future for short-term insurance across the region.
The MEA short-term insurance market is dynamic, driven by a burgeoning youth demographic and increased digital adoption. Gulf Cooperation Council (GCC) countries lead with robust economic growth and mandatory insurance schemes, particularly health and motor. South Africa dominates Sub-Saharan Africa, benefiting from established financial infrastructure. However, political instability in some regions and currency fluctuations pose challenges. Product innovation in cyber, travel, and property insurance, alongside the rise of Insurtech, is shaping market expansion. Regulatory reforms and increased awareness about risk protection are further stimulating demand across the diverse region, with microinsurance gaining traction in developing economies.
Top Countries Overview
The US dominates the global short term insurance market with substantial premiums and a diverse range of products. It leads in areas like property casualty and health but faces challenges from rising claims and increased competition. Regulatory landscape plays a key role in market dynamics and growth opportunities.
China's global short term insurance market is expanding with increasing digitalization and innovation. Regulatory changes and foreign investment are reshaping the landscape. While domestic players dominate, international insurers seek growth opportunities, particularly in property, casualty, and health. Technology adoption drives market penetration and product development.
India's global short term insurance market presence is growing due to rising domestic demand and economic expansion. While still a smaller player compared to developed nations, its increasing premium volumes in property, casualty, and health lines signal emerging influence and opportunities for international reinsurers and specialty insurers seeking new markets.
Impact of Geopolitical and Macroeconomic Factors
Geopolitical tensions stemming from regional conflicts and trade disputes create uncertainty, impacting business investment and consumer spending, directly influencing demand for property, casualty, and specialized liability coverage. Increased frequency and intensity of natural disasters dueven to climate change elevate claims costs for property and crop insurers, while regulatory shifts and evolving cyber threats necessitate new product development and higher capital reserves.
Macroeconomic factors like inflation erode underwriting profits and increase claims payouts due to rising repair and rebuilding costs, pressuring insurers to adjust pricing. Interest rate hikes, however, can boost investment income for insurers with large investment portfolios. Economic downturns lead to reduced demand for new policies and increased lapse rates, challenging premium growth and profitability across the short term insurance sector.
Recent Developments
- March 2025
Zurich Insurance Group launched a new AI-powered platform for travel insurance, offering hyper-personalized coverage options and instant claims processing. This strategic initiative aims to capture a larger share of the digital-first travel market by enhancing customer experience and operational efficiency.
- September 2024
Allianz announced a partnership with a major global e-commerce giant to offer embedded short-term product protection insurance at the point of sale. This collaboration significantly expands Allianz's reach into new customer segments and leverages data analytics for tailored product offerings.
- January 2025
State Farm introduced a new 'On-Demand Event Protection' product, allowing customers to purchase short-term coverage for specific events like concerts or sporting goods rentals through a mobile app. This product launch responds to the growing demand for flexible, usage-based insurance solutions.
- November 2024
Munich Re completed its acquisition of a prominent insurtech specializing in parametric insurance for weather-related short-term disruptions. This acquisition strengthens Munich Re's capabilities in innovative risk solutions and expands its portfolio in the rapidly evolving parametric market.
- April 2025
AIG announced a strategic initiative to integrate blockchain technology into its short-term cargo insurance claims process, aiming for faster verification and settlement. This move is designed to enhance transparency, reduce fraud, and improve efficiency in a traditionally complex claims environment.
Key Players Analysis
State Farm and Allianz lead as direct providers leveraging digital platforms and AI for personalized customer experiences and efficient claims processing. Munich Re and Zurich Insurance Group dominate the reinsurance sector providing capital and risk expertise to primary insurers. QBE Insurance and AIG focus on specialized short term products for businesses and individuals respectively. Chubb excels in high net worth short term coverage. The Hartford prioritizes commercial lines. AXA and Sompo Japan Insurance maintain strong global presences utilizing advanced data analytics and strategic partnerships to expand market share. Market growth is driven by increasing demand for flexible coverage options digital distribution and product innovation.
List of Key Companies:
- State Farm
- Munich Re
- Zurich Insurance Group
- QBE Insurance
- Allianz
- AIG
- Chubb
- The Hartford
- AXA
- Sompo Japan Insurance
- MetLife
- Nationwide
- Travelers
- Liberty Mutual
- Progressive
- Aviva
Report Scope and Segmentation
| Report Component | Description |
|---|---|
| Market Size (2025) | USD 118.5 Billion |
| Forecast Value (2035) | USD 241.7 Billion |
| CAGR (2026-2035) | 6.4% |
| Base Year | 2025 |
| Historical Period | 2020-2025 |
| Forecast Period | 2026-2035 |
| Segments Covered |
|
| Regional Analysis |
|
Table of Contents:
List of Figures
List of Tables
Table 1: Global Short-Term Insurance Market Revenue (USD billion) Forecast, by Insurance Type, 2020-2035
Table 2: Global Short-Term Insurance Market Revenue (USD billion) Forecast, by Distribution Channel, 2020-2035
Table 3: Global Short-Term Insurance Market Revenue (USD billion) Forecast, by Customer Type, 2020-2035
Table 4: Global Short-Term Insurance Market Revenue (USD billion) Forecast, by Policy Duration, 2020-2035
Table 5: Global Short-Term Insurance Market Revenue (USD billion) Forecast, by Coverage Type, 2020-2035
Table 6: Global Short-Term Insurance Market Revenue (USD billion) Forecast, by Region, 2020-2035
Table 7: North America Short-Term Insurance Market Revenue (USD billion) Forecast, by Insurance Type, 2020-2035
Table 8: North America Short-Term Insurance Market Revenue (USD billion) Forecast, by Distribution Channel, 2020-2035
Table 9: North America Short-Term Insurance Market Revenue (USD billion) Forecast, by Customer Type, 2020-2035
Table 10: North America Short-Term Insurance Market Revenue (USD billion) Forecast, by Policy Duration, 2020-2035
Table 11: North America Short-Term Insurance Market Revenue (USD billion) Forecast, by Coverage Type, 2020-2035
Table 12: North America Short-Term Insurance Market Revenue (USD billion) Forecast, by Country, 2020-2035
Table 13: Europe Short-Term Insurance Market Revenue (USD billion) Forecast, by Insurance Type, 2020-2035
Table 14: Europe Short-Term Insurance Market Revenue (USD billion) Forecast, by Distribution Channel, 2020-2035
Table 15: Europe Short-Term Insurance Market Revenue (USD billion) Forecast, by Customer Type, 2020-2035
Table 16: Europe Short-Term Insurance Market Revenue (USD billion) Forecast, by Policy Duration, 2020-2035
Table 17: Europe Short-Term Insurance Market Revenue (USD billion) Forecast, by Coverage Type, 2020-2035
Table 18: Europe Short-Term Insurance Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 19: Asia Pacific Short-Term Insurance Market Revenue (USD billion) Forecast, by Insurance Type, 2020-2035
Table 20: Asia Pacific Short-Term Insurance Market Revenue (USD billion) Forecast, by Distribution Channel, 2020-2035
Table 21: Asia Pacific Short-Term Insurance Market Revenue (USD billion) Forecast, by Customer Type, 2020-2035
Table 22: Asia Pacific Short-Term Insurance Market Revenue (USD billion) Forecast, by Policy Duration, 2020-2035
Table 23: Asia Pacific Short-Term Insurance Market Revenue (USD billion) Forecast, by Coverage Type, 2020-2035
Table 24: Asia Pacific Short-Term Insurance Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 25: Latin America Short-Term Insurance Market Revenue (USD billion) Forecast, by Insurance Type, 2020-2035
Table 26: Latin America Short-Term Insurance Market Revenue (USD billion) Forecast, by Distribution Channel, 2020-2035
Table 27: Latin America Short-Term Insurance Market Revenue (USD billion) Forecast, by Customer Type, 2020-2035
Table 28: Latin America Short-Term Insurance Market Revenue (USD billion) Forecast, by Policy Duration, 2020-2035
Table 29: Latin America Short-Term Insurance Market Revenue (USD billion) Forecast, by Coverage Type, 2020-2035
Table 30: Latin America Short-Term Insurance Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 31: Middle East & Africa Short-Term Insurance Market Revenue (USD billion) Forecast, by Insurance Type, 2020-2035
Table 32: Middle East & Africa Short-Term Insurance Market Revenue (USD billion) Forecast, by Distribution Channel, 2020-2035
Table 33: Middle East & Africa Short-Term Insurance Market Revenue (USD billion) Forecast, by Customer Type, 2020-2035
Table 34: Middle East & Africa Short-Term Insurance Market Revenue (USD billion) Forecast, by Policy Duration, 2020-2035
Table 35: Middle East & Africa Short-Term Insurance Market Revenue (USD billion) Forecast, by Coverage Type, 2020-2035
Table 36: Middle East & Africa Short-Term Insurance Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
