What is Fire Insurance
The fire and special perils policy provides a safety net to policyholders in case of unexpected events resulting in loss or damage caused by accidents such as fire, lightning, explosions, implosions, and natural calamities such as storms, cyclones, and floods. The policy also covers damage caused by human-made perils, such as riots and strikes.
This type of insurance contract is designed to provide financial protection to policyholders in case of an unforeseen contingency that could result in significant financial losses. This insurance policy is essential for anyone looking to safeguard their investments and assets against unexpected losses.
What factors have contributed to the growth of the fire insurance market
As per the reports, the general insurance industry witnessed a 6.7% growth in premiums collected in February 2021 compared to the previous year, with fire and health insurance segments reporting significant revenue growth. The growth in the fire insurance market can be attributed to factors such as increasing demand for insurance policies, rising need for financial safety in uncertain times, and a surge in the number of properties.
To maintain consistent growth and uniformity across insurers, all fire insurance products have been governed by the “All India Fire Tariff, 2001” from April 1, 2021. This means that terms, conditions, clauses, warranties, policy, and endorsement wordings are now standardized, benefiting policyholders by encouraging the waiver of under-insurance. As a result, policyholders can purchase fire insurance products based on their perceived risk.
Projected Growth and Market Segmentation of the Fire Insurance Market
As per the latest market research reports, the fire insurance market is expected to experience significant growth throughout 2021-28. The standard coverage segment is expected to hold a significant share in the market owing to its coverage of the cost of damage up to the property’s actual cash value, providing financial safety against non-accident-related claims.
On the other hand, the optional coverage segment is projected to grow at a higher rate during the forecast period due to its assurance of full value for goods and replacement in case of theft, loss or damage under one premium.
Conclusion
The global fire insurance market is expected to witness significant growth during the forecast period due to the rise in demand for insurance policies, the surge in construction and real estate activities, and the implementation of technologies in existing products and service lines.
Author's Detail:
Supriya R Ghadge, LinkedIn
I am working as a Senior Research Analyst, mainly involved in conducting market research in the Information and Communication, and Technology domain. Skilled in Secondary Research, Primary Research, Data Analytics Research approaches with extensive experience providing first-class results. Highly focused, have analytical skills, and synergetic with positive energizers. Meets job demands and deadlines through diligent work-ethic and dedication to quality. Works with clients to determine requirements and provide excellent service.
Author's Detail:
Supriya Jagtap /
LinkedIn
I am working as a Senior Research Analyst, mainly involved in conducting market research in the Information and Communication, and Technology domain. Skilled in Secondary Research, Primary Research, Data Analytics Research approaches with extensive experience providing first-class results. Highly focused, have analytical skills, and synergetic with positive energizers. Meets job demands and deadlines through diligent work-ethic and dedication to quality. Works with clients to determine requirements and provide excellent service.
