Report Overview

Global Equipment Breakdown Insurance Market Forecast and Trends

The Global Equipment Breakdown Insurance market is estimated to reach USD xx million at a significant CAGR of xx% during the forecast period from 2020-2026 as it helps in partial loss. In the event of partial damage to the machinery, the compensation shall include the full cost of the pieces, including labor charges, air freight charges, customs duties, and the dismantling and re-construction charges of the machinery.

Global premium growth in equipment breakdown insurance improved slightly mainly driven by emerging-market investment products. Due to the low interest rates, which remained close to historic lows, profitability remained challenging, although recent rate revival creates opportunities along with challenges. An Equipment Breakdown policy provides comprehensive, reliable cover while also complementing a well-designed general property insurance program to help ensure a company survives and prospers after a major loss. Creating this reporting is crucial owing to the technological advances present in today's electronics, which has increased equipment complexity. Most facilities include a range of sophisticated controls and sensors, Internet connectivity and advanced electronic sub-components. Sustained progress in developed markets, along with a greater share of emerging markets is expected to increase global growth in insurance breakdown equipment over the forecast period.

Global Equipment Breakdown Insurance Market Overview:

Equipment Breakdown Insurance provides “Coverage for loss due to mechanical or electrical breakdown” of nearly any type of equipment. Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown. Equipment breakdown insurance often covers complex equipment, systems, and processes, understanding and writing equipment breakdown insurance isn’t complex.

Equipment Breakdown Insurance is a form of property insurance. Its purpose is to insure against the financial losses – property damage, business interruption, and spoilage losses – that result from defined “accidents” to specified kinds of mechanical, electrical, and pressure equipment. Insured equipment may include such things as steam boilers, hot water boilers, pressure vessels, refrigerating and air conditioning systems, motors, generators, compressors, pumps, engines, fans, blowers, gear sets, turbines, transformers, 2 electrical switchgears, electronic equipment and a wide range of production and processing equipment.

Growth drivers 

Reduce the frequency and seriousness of an incident

Reduce the frequency and seriousness of an incident of an equipment is propelling the market. As in the physical inspection of the equipment, it will also help to identify dangerous conditions before any possible problems. The insurance company inspector looks not only at the state of the Breakdown in operation but also at factors such as the theory of plant management, training of staff, production flow, and vulnerability to business interruption. An inspector may offer suggestions that may help to reduce operating costs or extend the useful life of the equipment. For instance, the inspector shall supervise the testing of controls and safety devices, check the maintenance of equipment, and the "logs" of the operators.

Increasing urbanization and technological advancements

Rapid urbanization is driving the developing markets. Greater power demands for producing capital and consumer goods coupled with increased urbanization continues to spur developments towards attaining higher performance machines and installation of enhanced efficiency. Technological advancements have led to new materials that must withstand more stringent design parameters such as higher pressures, temperatures, operating speeds, etc. This, in turn, has led to greater stresses and increased exposures to both material and operating failures. The development of higher performance machine targets, greater capacity, and efficiency as an ongoing objective are expected to push the limits of technology. As equipment breakdown insurance has always been instrumental in promoting the acceptance of new technologies, it is expected to exhibit a rising trend.

Restraints

Complex insurance protection policies

The complexities of the insurance protection provided by an equipment breakdown policy are painful. It demands that business owners should work closely with an experienced insurance agent or broker to ensure they buy the correct amount of the right coverages at an appropriate price. Moreover, claim settlement should be hassle-free. Despite all complexities, the peace of mind that insurance protection provides to business owners is priceless.

Global Equipment Breakdown Insurance Market: Type

Based on Type, Equipment Breakdown Insurance market segmented into Type I, Type II.   Type I market is estimated to dominate the market during the forecast period of 2026 as first type is referred more appropriately to as the coverage of "loss reduction expenses" and is only available when the coverage of business income is not accompanied by additional coverage of expenses. This coverage pays any costs necessary to reduce the loss of business income but only to the extent that the expenses incurred minimize the loss of business income. For a surcharge, this provision is not available separately. It is automatically included in all forms of business profit.

Global Equipment Breakdown Insurance Market: Application

Based on Application, the Equipment Breakdown Insurance market segmented into Business and Manufacturing. Business segment is dominating the application segment in the Equipment Breakdown Insurance market during the forecast period of 2026 as it helps in protection against the business interruptions. In addition, it helps in coverage for perishable goods, and repair cost coverage, which is responsible for propelling the global equipment breakdown insurance market across the globe during the forecast period of 2026.

Global Equipment Breakdown Insurance Market: Regional insights

Based on the region, the equipment breakdown insurance market is segmented into north America, Europe, The Asia Pacific, Latin America, and Middle East & Africa. North America dominates the equipment breakdown insurance market as equipment breakdown insurance covers a wide range of disruptions, such as a web-based company whose servers are damaged, a business office complex with power failure, etc. & as the majority of companies are in North America, therefore, North America has the largest share compared to other regions during the forecast period from 2020-2026.

Equipment Breakdown Insurance Market: Competitive Landscape

The major market players in the Equipment Breakdown Insurance market are AXA, AIG, Aviva, Zurich, Liberty Mutual, Erie Insurance, Japan Post Insurance Company, Ltd., Ping An Insurance (Group) Company of China Ltd., Anthem, Inc., Assicurazioni Generali S.p.A., Berkshire Hathaway Inc., Allstate, Safeco Insurance, Allied Insurance, Centene Corporation, MS&AD Insurance Group Holdings, Inc., Aetna Inc., Gulfstream Insurance, and Other Prominent Players are expanding their presence in the market by implementing various innovations and technology.

Recent Developments:

Ø  In February 2020, AXA to sell its operations* in Central and Eastern Europe for USD 1.083 billion.

Ø  In December 2019, AXA has completed the acquisition of the remaining 50% stake in AXA Tianping.

The objective of the Study:

Ø  To analyze and forecast the global Equipment Breakdown Insurance market size of the market, in terms of value.

Ø  To examine the careful market segmentation and forecast the market size, in terms value, based on the region by segmenting the global Equipment Breakdown Insurance market into five regions, namely, North America, Europe, Asia Pacific, Middle East, Latin America and their leading countries.

Ø  To outline, categorized and forecast the global Equipment Breakdown Insurance market based on the alloy type, application, and region.

Ø  To examine competitive developments like technological advancement, services, and regulative framework within the global Equipment Breakdown Insurance market.

Ø  To highlight the impact analysis of the factors, affecting the market dynamics such as drivers, restraints, opportunities, and challenges.

Ø  To strategically profile the key players and comprehensively analyze their market shares along with detailing the competitive landscape for market leaders.

Scope of the Report

By Type

Ø  Type I

Ø  Type II

By Application

Ø  Business

Ø  Manufacturing

By Region

Ø  North America

Ø  Europe

Ø  Asia Pacific

Ø  Latin America

Ø  Middle East & Africa

Ø  Other Prominent Players