Kathmandu. The flood insurance market in the Asia-Pacific region is projected to grow at an average of about 20 per cent annually.
Allied Market Research estimates that the flood insurance market will grow by an average of 19.7% annually from 2023 to 2032. This increase will be achieved by increasing awareness, the research said in its report.
The global flood insurance market is projected to grow by an average of 15.6 per cent year-on-year during this period. The need for flood insurance seems to be increasing due to increased demand for property protection, regulatory support and increasing natural risk. “However, the high premium cost of flood insurance appears to limit this market,” the report said.
The report has also argued that increasing urbanization and infrastructure development, water habitat change and natural disasters arising from it can be the main factors in the growth of the flood insurance market.
In 2022, coverage of property, including commercial buildings and residential houses, accounted for nearly two-thirds of the income of the flood insurance market. The same coverage could lead to the flood insurance market in 2032, the report said.
