On-Demand Insurance Market (2026 - 2033)

On-demand Insurance Market Summary

The global on-demand insurance market size was valued at USD 1.7 billion in 2025 and is projected to grow from USD 2.0 billion in 2026 to USD 7.7 billion in 2033, at a CAGR of 21.2% from 2026 to 2033. North America dominated the market, accounting for a revenue share of 27.0% in 2025. Growing internet penetration and the number of smartphone users have increased access to on-demand insurance products for a considerable portion of the population. Insurers can now reach potential customers through online channels and mobile apps, making it easier for customers to purchase insurance policies. Additionally, the growth of smartphone users has spurred the development of mobile apps that enable customers to purchase on-demand insurance policies on the go. Insurers provide mobile apps that allow customers to browse policies, get quotes, and purchase policies on mobile devices.

Digital transformation is another major factor driving the growth of the on-demand insurance industry. The use of digital technologies has enabled insurers to collect additional data on customer behavior and usage patterns, allowing them to offer personalized insurance policies. For instance, insurers can use data analytics to offer personalized pricing based on individual risk profiles. Moreover, digital technologies have made it easier for insurers to interact with customers and offer a seamless experience. Customers can access insurance products and services through digital channels such as mobile apps and websites, making policy management more convenient.

Source: Grand View Research, IR Documents, Primary Interviews, Paid Databases

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Fintech has positively impacted the on-demand insurance industry by making it easier for on-demand insurance providers to offer their products and for consumers to purchase and manage their policies. Fintech has enabled insurance companies to leverage data analytics to better understand their customers and offer personalized products. By analyzing data, on-demand insurance providers can gain insights into customer behavior and preferences, helping them create personalized products that better meet their customers' needs. For instance, they could analyze data on the frequency and severity of customer claims during specific times of the year or in specific geographic locations. This information can help on-demand insurance providers anticipate customer needs and develop products tailored to their specific needs.

Regulatory compliance is a significant challenge for the on-demand insurance industry, as on-demand insurance companies must comply with various regulations and laws in the countries where they offer their products. Insurance companies offering on-demand insurance products may be required to obtain licenses in the countries where they operate. For instance, in the U.S., insurance companies must obtain licenses from individual states to offer insurance products in those states. In addition, insurance companies offering on-demand insurance products may collect personal data from their customers. They must comply with data privacy laws, such as the European Union's General Data Protection Regulation (GDPR). Under the GDPR, companies must obtain explicit consent from individuals before collecting and processing their data.

One major restraint of the on-demand insurance industry is the potential for fraudulent claims. Fraudulent claims can increase insurers' costs, leading to higher customer premiums. Insurers would have to allocate more resources to investigate claims and may also need to increase their reserves to cover potential losses. Besides, fraudulent claims can damage insurance providers' reputations, leading to a loss of trust and confidence in the market. This can deter potential customers from buying insurance and cause existing customers to switch to other providers.

Analyst Perspective

The global on-demand insurance market is shifting from traditional insurance policies toward premium, customized insurance. This growth is driven by rising consumer demand for flexible, convenient, and usage-based insurance policies. To capitalize on this trend, leading manufacturers are expanding their portfolios beyond traditional policies to include pay-as-you-need auto policies and individual customized policies. However, the market faces significant risks from supply challenges, especially rising cybersecurity threats. Companies are providing AI-driven recommendations and are incorporating fraud and risk assessment tools to maintain a long-term position in the market.

Coverage Insights

The car insurance segment dominated the market in 2025, accounting for more than 23.0% of revenue. One of the significant factors contributing to the growth of the segment is the ability to customize and the flexibility provided by the on-demand car insurance scheme. On-demand car insurance offers flexibility for drivers who may not need traditional coverage for an entire year. It allows drivers to choose when and how much coverage they need, making it a preferable option for people who only need insurance coverage for a short period. Additionally, on-demand car insurance allows drivers to customize their coverage to their needs. For instance, Practo Insura, a cloud-based P&C software platform for insurance companies, provides 5 types of usage-based insurance: Pay As You Need (Time-Based Cover), Pay As You Go (Mileage-Based Coverage), Pay How You Drive (Behavior-Based / Telematics Insurance), Subscription Auto Insurance, and On-Off Insurance (Toggle Activation Model) . Drivers can choose the coverage they need based on factors such as the type of car they drive, their driving history, and their personal preferences.

The electronic equipment insurance segment is anticipated to grow significantly over the forecast period. The growth is attributable to the rise in the use of electronic devices, including laptops, smartphones, and digital cameras. On-demand insurance provides quick and convenient coverage for electronic devices. As electronic devices become increasingly important in daily life, demand for insurance coverage for them has grown.

End Use Insights

The business end use segment dominated the market in 2025, accounting for over 71.0% of global revenue. On-demand insurance providers offer highly customizable insurance policies because they operate in a digital environment, enabling greater flexibility and speed in policy development and underwriting. Unlike traditional insurers with standardized policies and rigid underwriting processes, on-demand insurance providers can create policies specifically tailored to individual business needs. Additionally, on-demand insurance companies can offer coverage for equipment used in specific industries, such as construction or manufacturing. The policy can be designed to cover risks such as theft, damage, or equipment breakdown. For instance, in March 2026, Marsh Risk, a business of Marsh and Apollo, a Skyward Group Company, announced the creation of a first-of-its-kind insurance facility for Uber Technologies Inc. to accelerate the deployment of autonomous vehicles across Uber’s global platform. The autonomous vehicle insurance program (AVIP) is designed to support its autonomous vehicle (AV) partners, including developers, fleet operators, vehicle manufacturers/owners, and original equipment manufacturers, to quickly and reliably commercialize and scale autonomous ride-hailing and delivery services worldwide. AVIP provides Uber with dedicated capacity to provide AV partners with comprehensive primary and excess liability coverage at preferred rates, reflecting their unique safety performance. The AVIP solution wraps coverage for all key participants into a single master policy, eliminating complexities and streamlining coverage across Uber’s AV landscape.

The individual segment is expected to grow significantly over the forecast period. On-demand insurance providers offer more transparent policies than traditional insurers, with clear and easy-to-understand terms and conditions. This can help individuals better understand the coverage they are purchasing and ensure they get the protection they need.

Additionally, on-demand insurance is often provided through mobile apps or other digital platforms, making it convenient for individuals to purchase insurance. This can save time and effort for individuals compared with obtaining traditional insurance, which may require completing lengthy application forms and undergoing a more involved underwriting process.

Regional Insights

North America dominated the on-demand insurance industry in 2025 and accounted for a revenue share of more than 27.0%. The presence of a large number of leading on-demand insurance providers in the region, namely Slice Insurance Technologies Inc., SkyWatch Insurance Services, Inc., Xceedance, Inc, and Thimble, has contributed to the regional market's growth. North America's highly competitive insurance market has also contributed to the growth of on-demand insurance providers.

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As traditional insurers struggle to keep up with changing consumer preferences and technological advancements, on-demand insurance providers have seized the opportunity to offer innovative products and services that meet customers' evolving needs. Artificial intelligence and machine learning enable on-demand insurance providers in the region to automate underwriting processes and offer more personalized coverage options.

Asia Pacific On-Demand Insurance Market Trends

The on-demand insurance industry in the Asia Pacific is expected to emerge as the fastest-growing over the forecast period. The Asia Pacific has seen significant growth in the on-demand insurance industry in recent years, attributable to several factors, including rapidly growing economies such as China and India. As these economies continue to grow, demand for on-demand insurance products is increasing. Additionally, the rising demand for on-demand insurance in the Asia-Pacific region is driven by shifting consumer preferences, technological advances, and government initiatives to promote financial inclusion.

Key On-Demand Insurance Company Insights

The market is highly fragmented and characterized by numerous regional players catering to the requirements of on-demand insurance. Prominent on-demand insurance companies are aggressively investing in strategic initiatives, such as mergers and acquisitions, product launches, and partnerships, to stay ahead of the competition and offer innovative solutions to their customers. On-demand insurance providers are developing innovative insurance products that offer new coverage and benefits. For instance, some on-demand insurance providers offer coverage for specific events or activities, such as travel insurance that covers adventure sports or event cancellation insurance for music festivals. Additionally, on-demand insurance providers are increasingly offering personalized insurance policies tailored to individual customer needs.

Key On-Demand Insurance Companies

The following key companies have been profiled for this study on the on-demand insurance market:

• Slice Insurance Technologies Inc.

• VSure.life

• Xceedance, Inc.

• SkyWatch Insurance Services, Inc.

• Zuno General Insurance Limited

• JaSure

• Thimble

• JAUNTIN

• Cuvva

• Snap-it Cover

Recent Developments

• In June 2026, ING partnered with Bolttech as a strategic partner to expand embedded insurance and protection solutions across multiple European markets. The two companies will combine ING’s international customer network with Bolttech’s technology-driven insurance platform and servicing capabilities. The aim is to make it easier for customers to access protection products on a scale while reducing the operational complexity typically associated with running multi-market programs.
• In June 2026, Root, the leading technology company in car insurance, and Hugo, the first pay-at-your-pace liability insurance, announced a new partnership that expands access to affordable full coverage options and creates a simpler path for drivers to find coverage that fits both their needs and budget.

Global On-demand Insurance Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global on-demand Insurance market report by coverage, end use, and region.

• Coverage Outlook (Revenue, USD Billion, 2021 - 2033)
  • Car Insurance
  • Home Appliances Insurance
  • Entertainment Insurance
  • Contractor Insurance
  • Electronic Equipment Insurance
  • Others
• End Use Outlook (Revenue, USD Billion, 2021 - 2033)
  • Individuals
  • Businesses
• Regional Outlook (Revenue, USD Billion, 2021 - 2033)
  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
  • Asia Pacific
    • India
    • China
    • Japan
    • South Korea
    • Australia
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • Kingdom of Saudi Arabia (KSA)
    • UAE
    • South Africa