Summary
On Demand Insurance Market is valued at US$108.4 billion in 2025 and is projected to grow at a CAGR of 5.4% to reach US$174 billion by 2034.
On Demand Insurance Market – Executive Summary
The On Demand Insurance Market covers flexible, usage-based and micro-duration insurance products that can be activated, adjusted, or cancelled in real time via digital channels, rather than purchased as traditional long-term policies. It includes pay-per-use and short-term covers for personal mobility, shared vehicles, gig and freelance work, travel, electronics, events, micro-SME risks, and niche lifestyle activities. These propositions are typically delivered through mobile apps, embedded journeys at the point of sale, or API-based platforms integrated into marketplaces, banks, mobility services, and e-commerce ecosystems. Latest trends center on “switch on/off” coverages, parametric and event-triggered products, usage-based pricing powered by telematics and behavioral data, and fully embedded insurance where protection is bundled seamlessly into digital services. Growth is driven by the rise of the sharing and gig economies, digital-native consumers expecting frictionless experiences, increasing asset specialization (from drones to micro-mobility), and advances in cloud, APIs, and AI that lower the cost of micro-underwriting and servicing. Regulatory openness to sandboxes and innovation hubs in several jurisdictions is encouraging controlled experimentation with novel product forms and distribution models. The competitive landscape spans insurtech start-ups, MGAs and white-label platform providers, incumbent insurers launching digital brands, and non-insurance platforms that act as distributors or risk partners. Competitive levers include user experience and app design, quality of risk data and analytics, partner integration capabilities, speed to launch new products, and the ability to scale profitably while managing anti-selection and fraud. Overall, the on demand insurance market is transitioning from proof-of-concept stage to broader commercialization, moving from narrow product niches toward more comprehensive, embedded protection layers that accompany consumers and small businesses across multiple touchpoints.
Key Insights:
o Shift from static to usage-based and episodic cover: On demand insurance breaks away from annual, “always on” policies by allowing customers to insure assets or activities only when they are used. This model resonates strongly with younger, digitally savvy consumers and gig workers whose risk exposure is intermittent and context-dependent, rather than continuous.
o Mobility, gig economy, and travel as early anchor segments: Initial traction has been strongest in app-based mobility (car sharing, ride-hailing, micro-mobility), gig work (delivery, freelance services), and short-trip travel insurance. These use cases feature clear start/stop events, rich digital data, and platform-based distribution, making them ideal for real-time activation and pricing of coverage.
o Embedded insurance emerging as the dominant distribution model: Rather than selling directly to consumers in isolation, many on demand products are embedded into digital journeys such as booking a ride, renting equipment, buying a ticket, or checking out online. This reduces friction, raises conversion, and allows insurance pricing and eligibility to leverage contextual data captured by partner platforms.
o Data and AI-driven underwriting at granular levels: On demand models rely heavily on behavioral and contextual data—location, duration, transaction history, telematics, and platform ratings—to assess risk at micro-episode level. AI and machine learning are increasingly used to score risk in real time, adjust pricing dynamically, and detect anomalies indicative of fraud or misuse.
o API-first, cloud-native technology stacks as enablers: Modern on demand propositions are typically built on modular, API-first architectures that can plug into partner platforms, support rapid product configuration, and handle high volumes of small transactions. Cloud-native infrastructure and low-code/no-code tooling shorten development cycles and facilitate experimentation with new coverages.
o Parametric and event-trigger products gaining relevance: In certain lines, on demand insurance is converging with parametric designs where pre-defined events (flight delays, weather thresholds, platform outages) automatically trigger payouts. This reduces claims friction, shortens settlement times, and helps align micro-premiums with streamlined, highly automated claims handling.
o Regulatory adaptation and sandbox experimentation: Supervisors in several markets are using sandboxes and innovation hubs to test on demand models within controlled parameters. Key regulatory themes include fair pricing, transparency of terms in app-based flows, data privacy, capital treatment of granular risk, and ensuring consumers understand the episodic nature of coverage.
o Customer experience and trust as key differentiators: Success depends on extremely simple onboarding, transparent pricing, clear coverage boundaries, and fast, app-native claims processes. Poorly communicated exclusions or claim denials can quickly erode trust, making UX design, in-app education, and responsive support critical components of the value proposition.
o Profitability and risk-pooling challenges: While on demand insurance unlocks new segments, it can also suffer from anti-selection, high acquisition and servicing cost per unit of premium, and volatile loss ratios if risk pools are too narrow. Achieving sustainable economics requires careful product design, minimum commitment durations, bundling strategies, and disciplined portfolio management.
o Convergence between insurtechs and incumbents: The on demand market is increasingly characterized by partnerships in which insurtechs contribute front-end technology, UX, and integration capabilities, while incumbents provide balance sheet capacity, regulatory licenses, and underwriting expertise. Over time, these collaborations are likely to shape standard operating models and accelerate mainstream adoption of on demand insurance across multiple lines.
On Demand Insurance Market Reginal Analysis
North America
In North America, the on demand insurance market is shaped by a large base of gig workers, strong penetration of ride-hailing and food-delivery platforms, and high smartphone and card-payment adoption. Early use cases have centered on pay-per-mile auto, episodic personal liability, short-term travel and gadget cover, and flexible protection for freelancers and micro-SMEs. Major carriers are increasingly partnering with insurtechs to embed on demand cover into mobility, delivery, rental, and creator-economy platforms. Regulatory frameworks are relatively mature but fragmented at state and provincial levels, requiring careful product structuring and licensing. Data-driven underwriting using telematics, app behavior, and platform ratings is gaining acceptance, though privacy and fairness concerns continue to influence design and deployment.
Europe
In Europe, on demand insurance is underpinned by strong digital banking and payments infrastructure, growing car- and bike-sharing schemes, and a vibrant insurtech ecosystem focused on usage-based and flexible products. Key applications include short-term motor and mobility cover, gig-worker liability and accident insurance, on-trip travel policies, and episodic cover for sports, hobbies, and events. Regulatory environments emphasize consumer protection, transparency, and data privacy, shaping how app-based flows and consent mechanisms are designed. Embedded offerings via neo-banks, mobility platforms, and digital brokers are expanding rapidly, often supported by API-first MGAs and white-label providers. Sustainability and social inclusion agendas are also encouraging products that make protection accessible and affordable for non-traditional workers and small businesses.
Asia-Pacific
In Asia-Pacific, the on demand insurance market is propelled by super-app ecosystems, mobile-first consumers, and fast-growing digital economies. Micro-duration and bite-sized products are widely distributed through e-commerce, payments, ride-hailing, food-delivery, and travel platforms, covering transit, parcels, health events, devices, and personal accident risks. High population density and rapid urbanization support large volumes of low-premium, embedded policies that rely on automation and parametric triggers to remain viable. Regulators in several markets actively promote digital and inclusive insurance, using sandboxes and innovation licenses to test new models. Competition is intense between local tech platforms, regional insurtechs, and global reinsurers seeking to provide scalable underwriting capacity and real-time analytics to support high-frequency, low-ticket on demand products.
Middle East ＆ Africa
In the Middle East ＆ Africa, on demand insurance is emerging alongside the growth of fintech, super-apps, and platform-based mobility and delivery services. Early offerings focus on short-term motor and mobility cover, parcel and device protection, and micro-accident or life products linked to wallets and payment apps. Financial inclusion initiatives and high mobile penetration create opportunities for small-ticket, usage-based policies that can be activated per trip or per transaction. Regulatory frameworks vary widely, with some Gulf markets moving faster on digital licensing and sandbox schemes, while others are still in early stages of insurtech adoption. Partnerships between global insurers, regional players, and telco or super-app ecosystems are critical to scale distribution and manage regulatory and cultural nuances.
South ＆ Central America
In South ＆ Central America, the on demand insurance market is closely tied to the expansion of digital banks, e-commerce platforms, and app-based mobility and delivery services in major urban centers. Usage-based and micro-duration products are being tested for ride-hailing drivers, couriers, informal workers, travel, and small electronics, often bundled into subscription or wallet-based models. Economic volatility and income informality make flexible, low-commitment insurance attractive, but also put pressure on pricing accuracy and fraud management. Regulators are starting to address digital distribution, embedded sales, and data usage, creating a clearer framework for insurtechs and incumbents to collaborate. Local and regional carriers are increasingly open to MGA and white-label partnerships that allow rapid experimentation while they provide balance-sheet capacity and compliance expertise.
On Demand Insurance Market Analytics:
The report employs rigorous tools, including Porter’s Five Forces, value chain mapping, and scenario-based modelling, to assess supply–demand dynamics. Cross-sector influences from parent, derived, and substitute markets are evaluated to identify risks and opportunities. Trade and pricing analytics provide an up-to-date view of international flows, including leading exporters, importers, and regional price trends. Macroeconomic indicators, policy frameworks such as carbon pricing and energy security strategies, and evolving consumer behaviour are considered in forecasting scenarios. Recent deal flows, partnerships, and technology innovations are incorporated to assess their impact on future market performance.
On Demand Insurance Market Competitive Intelligence:
The competitive landscape is mapped through OG Analysis’s proprietary frameworks, profiling leading companies with details on business models, product portfolios, financial performance, and strategic initiatives. Key developments such as mergers & acquisitions, technology collaborations, investment inflows, and regional expansions are analysed for their competitive impact. The report also identifies emerging players and innovative startups contributing to market disruption. Regional insights highlight the most promising investment destinations, regulatory landscapes, and evolving partnerships across energy and industrial corridors.
Countries Covered:
• North America — On Demand Insurance Market data and outlook to 2034
o United States
o Canada
o Mexico
• Europe — On Demand Insurance Market data and outlook to 2034
o Germany
o United Kingdom
o France
o Italy
o Spain
o BeNeLux
o Russia
o Sweden
• Asia-Pacific — On Demand Insurance Market data and outlook to 2034
o China
o Japan
o India
o South Korea
o Australia
o Indonesia
o Malaysia
o Vietnam
• Middle East and Africa — On Demand Insurance Market data and outlook to 2034
o Saudi Arabia
o South Africa
o Iran
o UAE
o Egypt
• South and Central America — On Demand Insurance Market data and outlook to 2034
o Brazil
o Argentina
o Chile
o Peru
* We can include data and analysis of additional countries on demand.
Research Methodology:
This study combines primary inputs from industry experts across the On Demand Insurance value chain with secondary data from associations, government publications, trade databases, and company disclosures. Proprietary modelling techniques, including data triangulation, statistical correlation, and scenario planning, are applied to deliver reliable market sizing and forecasting.
Key Questions Addressed:
• What is the current and forecast market size of the On Demand Insurance industry at global, regional, and country levels?
• Which types, applications, and technologies present the highest growth potential?
• How are supply chains adapting to geopolitical and economic shocks?
• What role do policy frameworks, trade flows, and sustainability targets play in shaping demand?
• Who are the leading players, and how are their strategies evolving in the face of global uncertainty?
• Which regional “hotspots” and customer segments will outpace the market, and what go-to-market and partnership models best support entry and expansion?
• Where are the most investable opportunities—across technology roadmaps, sustainability-linked innovation, and M&A—and what is the best segment to invest over the next 3–5 years?
Your Key Takeaways from the On Demand Insurance Market Report:
• Global On Demand Insurance Market size and growth projections (CAGR), 2024-2034
• Impact of Russia-Ukraine, Israel-Palestine, and Hamas conflicts on On Demand Insurance trade, costs, and supply chains
• On Demand Insurance Market size, share, and outlook across 5 regions and 27 countries, 2023-2034
• On Demand Insurance Market size, CAGR, and market share of key products, applications, and end-user verticals, 2023-2034
• Short- and long-term On Demand Insurance Market trends, drivers, restraints, and opportunities
• Porter’s Five Forces analysis, technological developments, and On Demand Insurance supply chain analysis
• On Demand Insurance trade analysis, On Demand Insurance Market price analysis, and On Demand Insurance supply/demand dynamics
• Profiles of 5 leading companies—overview, key strategies, financials, and products
• Latest On Demand Insurance Market news and developments
Additional Support:
With the purchase of this report, you will receive
• An updated PDF report and an MS Excel data workbook containing all market tables and figures for easy analysis.
• 7-day post-sale analyst support for clarifications and in-scope supplementary data, ensuring the deliverable aligns precisely with your requirements.
• Complimentary report updates to incorporate the latest available data and the impact of recent market developments.
* The updated report will be delivered within 3 working days.
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Table of Contents
1. Table of Contents
1.1 List of Tables
1.2 List of Figures
2. Global On Demand Insurance Market Summary, 2025
2.1 On Demand Insurance Industry Overview
2.1.1 Global On Demand Insurance Market Revenues (In US$ billion)
2.2 On Demand Insurance Market Scope
2.3 Research Methodology
3. On Demand Insurance Market Insights, 2024-2034
3.1 On Demand Insurance Market Drivers
3.2 On Demand Insurance Market Restraints
3.3 On Demand Insurance Market Opportunities
3.4 On Demand Insurance Market Challenges
3.5 Tariff Impact on Global On Demand Insurance Supply Chain Patterns
4. On Demand Insurance Market Analytics
4.1 On Demand Insurance Market Size and Share, Key Products, 2025 Vs 2034
4.2 On Demand Insurance Market Size and Share, Dominant Applications, 2025 Vs 2034
4.3 On Demand Insurance Market Size and Share, Leading End Uses, 2025 Vs 2034
4.4 On Demand Insurance Market Size and Share, High Growth Countries, 2025 Vs 2034
4.5 Five Forces Analysis for Global On Demand Insurance Market
4.5.1 On Demand Insurance Industry Attractiveness Index, 2025
4.5.2 On Demand Insurance Supplier Intelligence
4.5.3 On Demand Insurance Buyer Intelligence
4.5.4 On Demand Insurance Competition Intelligence
4.5.5 On Demand Insurance Product Alternatives and Substitutes Intelligence
4.5.6 On Demand Insurance Market Entry Intelligence
5. Global On Demand Insurance Market Statistics – Industry Revenue, Market Share, Growth Trends and Forecast by segments, to 2034
5.1 World On Demand Insurance Market Size, Potential and Growth Outlook, 2024- 2034 ($ billion)
5.1 Global On Demand Insurance Sales Outlook and CAGR Growth By Insurance Type, 2024- 2034 ($ billion)
5.2 Global On Demand Insurance Sales Outlook and CAGR Growth By Distribution Channel, 2024- 2034 ($ billion)
5.3 Global On Demand Insurance Sales Outlook and CAGR Growth By End User, 2024- 2034 ($ billion)
5.4 Global On Demand Insurance Market Sales Outlook and Growth by Region, 2024- 2034 ($ billion)
6. Asia Pacific On Demand Insurance Industry Statistics – Market Size, Share, Competition and Outlook
6.1 Asia Pacific On Demand Insurance Market Insights, 2025
6.2 Asia Pacific On Demand Insurance Market Revenue Forecast By Insurance Type, 2024- 2034 (US$ billion)
6.3 Asia Pacific On Demand Insurance Market Revenue Forecast By Distribution Channel, 2024- 2034 (US$ billion)
6.4 Asia Pacific On Demand Insurance Market Revenue Forecast By End User, 2024- 2034 (US$ billion)
6.5 Asia Pacific On Demand Insurance Market Revenue Forecast by Country, 2024- 2034 (US$ billion)
6.5.1 China On Demand Insurance Market Size, Opportunities, Growth 2024- 2034
6.5.2 India On Demand Insurance Market Size, Opportunities, Growth 2024- 2034
6.5.3 Japan On Demand Insurance Market Size, Opportunities, Growth 2024- 2034
6.5.4 Australia On Demand Insurance Market Size, Opportunities, Growth 2024- 2034
7. Europe On Demand Insurance Market Data, Penetration, and Business Prospects to 2034
7.1 Europe On Demand Insurance Market Key Findings, 2025
7.2 Europe On Demand Insurance Market Size and Percentage Breakdown By Insurance Type, 2024- 2034 (US$ billion)
7.3 Europe On Demand Insurance Market Size and Percentage Breakdown By Distribution Channel, 2024- 2034 (US$ billion)
7.4 Europe On Demand Insurance Market Size and Percentage Breakdown By End User, 2024- 2034 (US$ billion)
7.5 Europe On Demand Insurance Market Size and Percentage Breakdown by Country, 2024- 2034 (US$ billion)
7.5.1 Germany On Demand Insurance Market Size, Trends, Growth Outlook to 2034
7.5.2 United Kingdom On Demand Insurance Market Size, Trends, Growth Outlook to 2034
7.5.2 France On Demand Insurance Market Size, Trends, Growth Outlook to 2034
7.5.2 Italy On Demand Insurance Market Size, Trends, Growth Outlook to 2034
7.5.2 Spain On Demand Insurance Market Size, Trends, Growth Outlook to 2034
8. North America On Demand Insurance Market Size, Growth Trends, and Future Prospects to 2034
8.1 North America Snapshot, 2025
8.2 North America On Demand Insurance Market Analysis and Outlook By Insurance Type, 2024- 2034 ($ billion)
8.3 North America On Demand Insurance Market Analysis and Outlook By Distribution Channel, 2024- 2034 ($ billion)
8.4 North America On Demand Insurance Market Analysis and Outlook By End User, 2024- 2034 ($ billion)
8.5 North America On Demand Insurance Market Analysis and Outlook by Country, 2024- 2034 ($ billion)
8.5.1 United States On Demand Insurance Market Size, Share, Growth Trends and Forecast, 2024- 2034
8.5.1 Canada On Demand Insurance Market Size, Share, Growth Trends and Forecast, 2024- 2034
8.5.1 Mexico On Demand Insurance Market Size, Share, Growth Trends and Forecast, 2024- 2034
9. South and Central America On Demand Insurance Market Drivers, Challenges, and Future Prospects
9.1 Latin America On Demand Insurance Market Data, 2025
9.2 Latin America On Demand Insurance Market Future By Insurance Type, 2024- 2034 ($ billion)
9.3 Latin America On Demand Insurance Market Future By Distribution Channel, 2024- 2034 ($ billion)
9.4 Latin America On Demand Insurance Market Future By End User, 2024- 2034 ($ billion)
9.5 Latin America On Demand Insurance Market Future by Country, 2024- 2034 ($ billion)
9.5.1 Brazil On Demand Insurance Market Size, Share and Opportunities to 2034
9.5.2 Argentina On Demand Insurance Market Size, Share and Opportunities to 2034
10. Middle East Africa On Demand Insurance Market Outlook and Growth Prospects
10.1 Middle East Africa Overview, 2025
10.2 Middle East Africa On Demand Insurance Market Statistics By Insurance Type, 2024- 2034 (US$ billion)
10.3 Middle East Africa On Demand Insurance Market Statistics By Distribution Channel, 2024- 2034 (US$ billion)
10.4 Middle East Africa On Demand Insurance Market Statistics By End User, 2024- 2034 (US$ billion)
10.5 Middle East Africa On Demand Insurance Market Statistics by Country, 2024- 2034 (US$ billion)
10.5.1 Middle East On Demand Insurance Market Value, Trends, Growth Forecasts to 2034
10.5.2 Africa On Demand Insurance Market Value, Trends, Growth Forecasts to 2034
11. On Demand Insurance Market Structure and Competitive Landscape
11.1 Key Companies in On Demand Insurance Industry
11.2 On Demand Insurance Business Overview
11.3 On Demand Insurance Product Portfolio Analysis
11.4 Financial Analysis
11.5 SWOT Analysis
12 Appendix
12.1 Global On Demand Insurance Market Volume (Tons)
12.1 Global On Demand Insurance Trade and Price Analysis
12.2 On Demand Insurance Parent Market and Other Relevant Analysis
12.3 Publisher Expertise
12.2 On Demand Insurance Industry Report Sources and Methodology
