Burlingame, CA, June 12, 2025 (GLOBE NEWSWIRE) — The Global Short Term Insurance Market is projected to grow from USD 204.16 billion in 2025 to USD 317.01 billion by 2032 at a CAGR of 6.5% according to a new report by Coherent Market Insights. The short-term insurance market is projected to experience consistent growth throughout the forecast period. This expansion is driven by factors such as escalating healthcare expenses, a rise in natural disasters linked to climate change, increased awareness of insurance offerings, and widespread smartphone and internet usage, all of which contribute to the growing demand for short-term insurance plans.
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Global Short Term Insurance Market Key Takeaways
According to Coherent Market Insights (CMI), the global short term insurance market size is projected to expand from USD 204.16 Bn in 2025 to USD 317.01 Bn by 2032, recording a CAGR of 6.5%.
By product category, homeowner insurance segment is expected to account for 22.7% of the global short term insurance market share in 2025.
Based on application, individual category is anticipated to generate a market revenue of about USD 147.81 Bn in 2025.
North America short term insurance market is estimated to be valued at around USD 76.15 Bn by 2032, making it a top leader in this industry.
As per CMI’s new short-term insurance market research report, Asia Pacific, with a 22.6% share in 2025, is expected to record the fastest growth during the assessment period.
Growing Demand for Flexible Coverage Options Spearheading Market Growth
Coherent Market Insights’ latest short term insurance market analysis offers insights into major factors driving industry growth. Increasing demand for flexible coverage solutions is one such prominent growth factor.
Individuals and businesses in the contemporary world are increasingly seeking affordable, short-duration insurance policies that offer flexibility without long term commitments. This trend is expected to drive demand for short term insurance solutions.
Short-term insurance offerings are especially gaining traction popular among gig workers, freelancers, and seasonal employees. This is because these flexible insurance options align well with their needs. Thus, rising demand for these flexible coverage options is anticipated to continue fueling market growth.
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Regulatory Challenges and Fraudulent Claims Restraining Market Growth
The future short term insurance market outlook looks bright. However, regulatory challenges and rising number of fraudulent claims are expected to restrain market growth to some extent.
Frequent changes in regulatory frameworks often increase compliance as well as operational costs, making it difficult for insurers to adapt quickly. This, along with complex licencing requirements, may discourage new entrants and limit short term insurance market growth.
There is also an increase in the incidence of fraudulent claims in segments like motor and health insurance, leading to increased costs for insurers. This can also negatively impact the target industry in the coming years.
Rising Awareness of Financial Risk Management to Create Lucrative Growth Avenues
Individuals and businesses across the world are becoming more aware of various risks (e.g. health and financial risks) and the need for adequate protection. This is expected to create lucrative growth opportunities for short term insurance providers.
Rising occurrence of natural disasters and climate-related events is also creating a conducive environment for the expansion of short term insurance market. This is because such unpredictable incidents drive increased demand for flexible, easily accessible coverage options that can offer financial protection against sudden losses.
Short-term insurance policies allow individuals and businesses to secure coverage for specific periods or events. This makes them ideal for managing risks associated with extreme weather, floods, wildfires, or other climate-related disruptions. As awareness of these risks grows, so will the adoption of short-term insurance.
Impact of AI on the Short Term Insurance Market
Artificial Intelligence (AI) is reshaping the short-term insurance industry by streamlining operations as well as enhancing customer experience. It also plays a crucial role in improving risk assessment and decision-making processes.
Insurers are increasingly adopting AI-powered tools for faster claims processing, fraud detection, and personalized policy pricing based on real-time data analysis. Chatbots and virtual assistants have the potential to improve customer service efficiency.
Many companies are launching new AI-driven tools to revolutionize insurance ecosystem. For instance, in February 2025, Simplifai unveiled its new ‘Agentic AI’ suite to transform insurance automation.
Agentic AI’ suite is an AI-powered automation platform designed specifically for insurance providers. It has the potential to optimize critical processes such as claims handling, underwriting, and customer service.
Emerging Short Term Insurance Market Trends
Rising trends in travel and mobility are likely to play a key role in boosting the short-term insurance market value. There is a significant rise in domestic and international travel, creating demand for short-term travel and health insurance.
Growing popularity of Insurtech is another key growth-shaping trend in the market. Insurtech platforms are making it easier for consumers to purchase short term insurance on demand through digital platforms and apps.
Many governments are launching initiatives and supportive policies to promote insurance penetration. This is expected to foster growth of the short term insurance industry during the assessment period.
Some companies are offering on-demand and microinsurance to cater to specific needs of consumers. Introduction of such insurance models will also play a key role in supporting market expansion.
Analyst’s View
“The global short-term insurance market is experiencing steady growth, owing to increasing demand for flexible coverage options, heightened risk awareness, rapid digital transformation, and the adoption of advanced technologies,” said senior analyst Monica Shevgan.
Current Events and Their Impact on the Short Term Insurance Market
| Event | Description and Impact |
| 2024–2025 Global Weather Extremes |
|
| Rise in Cybersecurity Incidents (2024–25) |
|
| AI-Driven Underwriting & Claims (2025) |
|
Competitor Insights
Key companies listed in short term insurance market report include:
- Cigna TTK
- Allianz
- CVS Health
- Zurich
- UnitedHealth Group
- Chubb
- BUPA
- Centene
- Anthem
- Liberty Mutual
- Humana
- WellCare Health Plans
- Santam
- SBI Holdings
- State Farm
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Key Developments
In June 2025, Generali Hong Kong launched LionAchiever Elite, a new insurance offering for legacy planning. The new insurance policy is designed to integrate short-term savings with long-term wealth transfer objectives.
In June 2024, Liberty Mutual Insurance introduced a new flexible insurance solution called Liberty WorldWise for mid-size companies with foreign exposures. The new solution is particularly designed for companies with employees working abroad or operating internationally.
Related Reports:
Corporate Owned Life Insurance Market Analysis and Forecast for 2025-2032
Vehicle Insurance Market Analysis and Forecast for 2025-2032
Health Insurance Market Size, Share & Trends Analysis Report (2025-2032)
About Us:
Coherent Market Insights leads into data and analytics, audience measurement, consumer behaviors, and market trend analysis. From shorter dispatch to in-depth insights, CMI has exceled in offering research, analytics, and consumer-focused shifts for nearly a decade. With cutting-edge syndicated tools and custom-made research services, we empower businesses to move in the direction of growth. We are multifunctional in our work scope and have 450+ seasoned consultants, analysts, and researchers across 26+ industries spread out in 32+ countries.
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