The global Burial Insurance market, valued at USD 231.5 million in 2021, is on a trajectory of substantial growth, projected to achieve a CAGR of 5.9 percent during the forecast period. This expansion is driven by multiple factors, including the surging demand for funeral services and related expenses, heightened awareness about burial insurance coverages, and the profound impact of the COVID-19 pandemic on insurance subscriptions.
Global Expansion Driven by Rising Demand
Burial insurance has witnessed a remarkable global expansion, with industrialized nations like Canada and the U.S. facing escalating funeral costs and associated challenges. In response, governments in regions such as Ontario, Saskatchewan, Nova Scotia, British Columbia, Alberta, and others have initiated funeral assistance programs, stimulating market growth.
Strategic Initiatives Strengthen Market Positions
Leading players in the burial insurance industry are actively implementing strategies to fortify their market positions. These strategies encompass technological innovations, product developments, mergers, acquisitions, joint ventures, alliances, and partnerships. Notably, the strategic cooperation between Nubank and Chubb in Brazil has introduced digital insurance products covering all funeral costs, demonstrating a commitment to covering expenses for residents and migrants alike.
COVID-19 Impact Spurs Demand
The COVID-19 pandemic has significantly increased the number of individuals seeking burial insurance plans. The global outbreak heightened awareness of insurance coverage options, with mortality rates surging worldwide. Countries such as Italy, Spain, the United States, and China have faced cemetery space shortages due to the unprecedented number of deaths, prompting a surge in insurance claims and the immediate need for burial and funeral coverage.
Drivers of Market Growth
- Awareness of Burial Insurance Coverages: The growing awareness of burial insurance coverages is a key driver. Escalating funeral costs in various countries have made funeral expenses a significant concern, prompting individuals to seek burial insurance to ensure adequate end-of-life care.
- Rising Incidence of Chronic Diseases: The increasing prevalence of chronic diseases, such as heart disease, cancer, and lung disorders, has driven insurance policy subscriptions, especially among working-age and elderly populations.
Challenges to Market Growth
- Complexities of Burial Insurance: The complexities surrounding burial insurance benefit payments, including variations for accidental and natural deaths and regulatory hurdles, present challenges to market expansion.
- Modified or Graded Death Benefit: This segment dominates the market due to fluctuating insurance rates, making it an attractive option for individuals with various health issues.
- Over 70 Category: This category dominates the market as it offers the highest returns on investment, addressing the rising funeral costs in developed nations.
- North America: Expected to account for the largest revenue share, driven by comprehensive coverage requirements and potential expansions of the Affordable Care Act in the U.S.
- Europe: Anticipated to experience stable growth, driven by rising funeral expenses in countries like the UK and the aging population in nations such as Italy.
Prominent players in the Burial Insurance Market include AARP, Gerber Life Insurance Company, Foresters Financial Services Inc., Mutual of Omaha Insurance Company, Globe Life and Accident Insurance Company, Colonial Penn, The American Automobile Association Inc., Fidelity Life Association, Royal Neighbors of America, Metlife, Inc., among others.
The global Burial Insurance market is poised for robust growth, driven by shifting demographics, increased awareness, and the evolving insurance landscape. As individuals seek financial protection for their end-of-life expenses, the market is expected to thrive in the coming years.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/burial-insurance-market
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