The adoption of advanced technologies is driving changes in the boiler insurance market which is expected to reach $US18.10 billion by 2027, a CAGR of 14.3 per cent.
A new report from ResearchAndMarkets.com found the market will grow from $9.21 billion in 2022 to $10.61 billion in 2023, with a CAGR of 15.3 per cent.
Boiler insurance is a security plan that protects companies from financial losses faced due to boiler and machinery breakdown or failure. It is used to safeguard companies from financial losses.
The main types of boiler insurance include boiler repairs, boiler servicing, plumbing and drainage repairs.
The major types of boilers covered in insurance are fire-tube and water-tube boilers, and policies such as gold, platinum, and others are commonly used by industries in chemicals, refineries, metal and mining, food and beverages.
“The adoption of advanced technologies is a key trend gaining popularity in the boiler insurance market. Major companies are integrating advanced technologies with their insurance services to sustain their market position,” the report said.
“For instance, in September 2022, The Hartford Steam Boiler Inspection and Insurance Company, a US-based company specializing in engineering and technical risk insurance, especially for boilers, introduced the Meshify Protect mobile application for sensor monitoring and alerts in industry operations.
“The Meshify Protect mobile app streamlines sensor activation, monitors the condition of places, and sends immediate notifications concerning water leaks, frozen pipes, extremely high or low temperatures, equipment failure, and other potentially harmful situations using IoT technology.”
Last year Germany-based Munich Re and US-based HSB Group partnered with Schneider Electric SE to blend risk solutions, including uptime guarantees and unwarned failure warranties, with IoT technology to serve clients.
North America was the largest region in the boiler insurance market in 2022, while Asia-Pacific is expected to experience significant growth in the forecast period.
The growing number of explosions and related damage is also driving the boiler insurance market.
Boilers operate at high temperatures and require careful operation. Sometimes, boilers explode due to the failure of safety precautions.