On Demand Insurance Market Size, Share & Industry Analysis, By Insurance Type (Automobile and Mobility, Property Insurance {Home Appliances, Electronics, Jewelry, and Others}, Travel Insurance, Health and Life Micro Insurance, Commercial, and Others}, By Distribution Channel (Digital Platforms, Brokers & Agents, Insurance Companies, and Others), By End User (Individuals, SMEs {Retail, E-commerce & Aggregators, Logistics, and Others}, and Institutional Groups), and Regional Forecast, 2025-2032

The global on demand insurance market size was valued at USD 105.69 billion in 2024. The market is projected to grow from USD 110.62 billion in 2025 to USD 157.51 billion by 2032, exhibiting a CAGR of 5.2% during the forecast period. North America dominated the on demand insurance market with a market share of 37.08% in 2024.

On demand insurance is referred as a flexible and usage based insurance that could be activated and deactivated as required through digital platforms. This offers customers with affordability, convenience, and personalization. It also enables users to dynamically insure assets, activities or a time period as compared to traditional insurers, that serve gig workers, travelers and shared economy service utilizers.

Various factors are propelling the development of the market, including rising digitalization, extensive use of smartphones and increased demand for the service among customers in individual products. Moreover, the growth of artificial intelligence, Internet of Things and data analytics have also helped optimize processes and risk evaluation, further driving the market growth.

Few prominent players operating in the market include, Cuvva, Zego, Slice, and others. These companies are focusing on innovation by developing electronic devices based micro insurance products, strategic alliances with fintech and mobility companies and data driven pricing to maintain the competition.

MARKET DYNAMICS

Market Drivers

Growth in Digitalization & Gig Economy Drives the Market Expansion

The high pace of digitalization and gig economy drives the on demand insurance market growth. The availability of smartphones and sophisticated telematics allows for the real time tracking and easy policy management, making coverage for a short period convenient and easily available.

• For instance, according to Niti Aayog.gov, in 2020-21, 7.7 million workers were engaged in the gig economy. The gig workforce is expected to expand to 23.5 million workers by 2029-30. Currently, around 47% of the gig work is in medium skilled jobs, about 22% in high skilled, and about 31% in low skilled jobs.

Additionally, increase of gig workers demanding flexible pay-as-you-go coverage, including ridesharing, freelancing and delivery services, is widening the market expansion. these factors would lead to increased consumer uptake of on demand insurance products as they are personalized and suitable for digital first lives, eventually driving the market growth and innovation.

Market Restraints

Regulatory & Awareness Gap Hampers the Market Growth

The regulatory fragmentation and lack of awareness offers a major challenge to the market. Unpredictable insurance laws in developing economies lead to complicated compliance requirements, thus slowing down the introduction of products and restrict access to the market. Pay-per-use and short term insurance benefits are not commonly understood by the consumers, thus decreasing its adoption.

Additionally, insurers are experiencing hardships in working through different legal systems making operations more expensive and sluggish to innovate. These factors have limited the market growth majorly across areas with immature regulatory framework.

Market Opportunities

Micro & Inclusive Insurance Expansion Offers Lucrative Growth Opportunities

The expanding micro and inclusive insurance offers a significant opportunity for market. Growing financial including initiatives and insurer partnerships, majorly in index based and health coverage and offering growth opportunities in Asia Pacific and Africa regions. 

Moreover, affordable and bite sized insurance products caters to new customers offering them pay-as-you-go and flexible solutions. This also leverages digital platforms to offer tailored and instant solutions, thus meeting the mobile users and low income customers. 

ON DEMAND INSURANCE MARKET TRENDS 

Rapid Shift Toward Embedded & Usage-Based Models is an Emerging Market Trend

One of the major trends in the market is a rapid transition to usage based and embedded model. This model provides seamless and contextual coverage by embedded insurance into e-commerce, mobility, and travel sites through integration that is delivered when required. This strategy increases the convenience, minimizes the resistance in purchasing policy and conforms to current digital practices.

• For instance, in 2019, Tel Aviv-based startup VOOM has raised USD 7 million from investors to provide usage based insurance solutions for commercial drones, e-scooters, power sports risks and motorboats. 

Additionally, the usage based models are attractive for cost sensitive consumers demanding flexibility. Together, these models redefine the relationships with customer, increase access to the service and hasten uptake of personalized and real time insurance services.

Download Free sample to learn more about this report.

SEGMENTATION ANALYSIS

By Insurance Type

Growing Need for Flexible and Pay-As-You-Go Coverage Boosts Automobile and Mobility Segment Growth

Based on the product type, the market is automobile and mobility, property insurance, travel insurance, health and life micro insurance, commercial, and others. The property insurance segment is further divided into home appliances, electronics, jewelry, and others.

In 2024, automobile and mobility segment held the largest on demand insurance market share with a share of USD 41.44 billion. This dominance is attributed to a huge installed base of vehicles and the increase in need for pay as you go and flexible insurance coverage. Surge in ride sharing and gig economy, has also enhanced the need for tailored insurance offerings. Additionally, urbanization and rising mobility trends further increase adoption, and telematics integration enables personalized, and data driven pricing.

Health and life micro insurance segment is expected to grow with a highest CAGR of 6.4% over the forecast period. This is due to growing demand for affordable coverage, financial inclusion initiatives and digital health platforms across emerging economies. Moreover, NGOs, governments and insurtech startups are increasingly adopting micro-insurance to cover, the remote population.

By Distribution Channel

Growing Demand for Digital Platforms Due to Its Seamless Integration in Mobiles to Drive the Segment Growth

The market is divided into digital platforms, brokers & agents, insurance companies, and others, based on distribution channel.

Among these, the digital platforms segment dominated the market with a revenue share of USD 50.34 billion in 2024. It is also expected to grow with highest CAGR of 5.9% during the forecast period. This growth is owing to its seamless integration in mobile apps, instant policy issuance, and effective/personalized coverage through technological upgradation via AI and analytics. Its low operating costs, higher scalability and reach across urban and rural areas through mobiles, drives the segment growth.

By End User

Expansion of Pay-Per-Use and Flexible Insurance Solutions Augments the Individuals Segment Growth

Based on the application, the market is divided into individuals, SMEs, and institutional groups. The SMEs segment is further divided into retail, e-commerce & aggregators, logistics, and others.

Individuals segment held the highest market share in 2024 with a revenue share of USD 59.97 billion. This is owing to the increased adoption of personal mobility, health, travel, and gadget protection policies. Additionally, a flexible and pay-per-use models also promotes urban customer user base looking for affordability and convenience, thus making individuals the major revenue contributor.

On the other hand, SMEs is the fastest growing segment with a CAGR of 5.7% in 2024. This is driven by the demand for customizable business travel coverage, short term insurances for health, logistics, and asset protection. Additionally, integration of digital platforms is also enabling various SMEs to adopt cost effective policies that are tailored to their shifting operations.

To know how our report can help streamline your business, Speak to Analyst

ON DEMAND INSURANCE MARKET REGIONAL OUTLOOK

Geographically the market is segmented into North America, Europe, Asia Pacific, South America and Middle East & Africa.

North America

The North America region leads the market with a share of USD 39.19 billion in 2024. The region also contributed a revenue of USD 37.46 billion in 2023. This growth is driven by expansion of insurance adoption and mature insurtech platforms across the regions. Additionally, the region has a presence of different leading players that offer usage based travel, auto, and health products. Countries including U.S. have an advanced digital infrastructure and regulatory models that support innovations and reinforce the regional growth. The U.S. is predicted to reach USD 31.31 billion by 2025.

Europe

The European market is substantially growing and likely to contribute to a revenue share of USD 22.94 billion in 2025. This is attributed to the growing digitalization, increasing consumer preference for pay-per-use coverage and expansion of gig economy.  U.K., Germany, and Italy are some of the major contributors to the market growth with an expected revenue share of USD 3.69 billion, USD 5.6 billion, and USD 2.41 billion respectively by 2025.

Asia Pacific

Asia Pacific held a highest CAGR of 5.8% in 2025 and expected to reach USD 37 billion in 2025.  This is fueled by increasing smartphone usage, growing gig economy and huge uninsured or underinsured populations. Moreover, government backed financial inclusion initiatives and growing digital ecosystem across India, Southeast Asia and China are also accelerating the demand for micro, flexible and on demand insurance products. India and China are expected to contribute to a revenue share of USD 4.8 billion and USD 15.05 billion respectively in 2025. 

South America and Middle East & Africa

The markets of South America and Middle East & Africa are growing with an expected share of USD 6.31 billion and USD 3.31 billion respectively in 2025 due to growing smartphone penetration, rising popularity of flexible, and digital transformation. GCC countries are predicted to have a market share of USD 2.07 billion by 2025. 

COMPETITIVE LANDSCAPE

Key Industry Players

Growing Focus of Key Players on Innovative Solutions Leads to their Dominating Market Positions

The global on demand insurance industry is highly fragmented and dynamic, featuring well known insurers, new startups and other platform integrated distributors. Additionally, these key players are implementing different strategies such as partnerships and strategic alliances as the players seek broad product portfolios and competitive edge.

LIST OF KEY ON DEMAND INSURANCE COMPANIES PROFILED:

• Trōv (U.S.)
• Slice (U.S.)
• Metromile (U.S.)
• Lemonade, Inc. (U.S.)
• Sure Inc. (U.S.)
• Cuvva (U.K.)
• Zego (U.K.)
• Digital Risks (U.K.)
• Neosurance (Italy)
• Great American Insurance Group (U.S.)
• ManyPets (U.K.)
• Hippo (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2025- Freberg Environmental Insurance LLC, a managing general underwriter specifying in environmental risks and part of Ryan Specialty, has introduced its Environmental Unsupported Excess Liability program. This expands Freberg's current environmental liability offered by giving more flexibility and wider access to expand limits across a wide range of environmental risks.
• October 2025- A new digital insurer, Covertime, has launched in U.K. motor market with a platform intended to meet the rising demand for short-term, on-demand car insurance. Since its launch, Covertime has located itself as a regulated intermediary in the U.K. motor insurance market.
• October 2025- Majesco, the insurance industry’s leading innovator in cloud-native, AI-driven software, announced the launch of Majesco P&C CoreConnect’s MGA Model Office, ground-breaking, fully pre-configured MGA system which is production-ready, available on demand, and packed with foremost third-party integrations and pre-built lines of business products for immediate deployment.
• July 2024- Brokerslink, a network of independent brokers, has introduced a specialised Trade Credit Insurance (TCI) practice to meet the increasing demand from its international affiliates. This new TCI practice allows Brokerslink’s Partners and Affiliates contact to a shared pool of expertise in the Trade Credit sector, letting brokers to improve their services for both local and multinational clients.

REPORT COVERAGE

The global report provides a detailed analysis of the market and focuses on key aspects such as prominent companies, deployment modes, types, and end users of the product. Besides this, it offers insights into the on demand insurance market trends and highlights key industry developments and market share analysis for key companies. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the on demand insurance.

To gain extensive insights into the market, Download for Customization

Report Scope & Segmentation