Legal Insurance - Worldwide | Statista Market Forecast

The projected market size (gross written premium) of the Legal Insurance market market worldwide is expected to reach US$75.17bn in 2024.
The average spending per capita in the Legal Insurance market market is estimated to be US$9.70 in 2024.
The gross written premium is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.47%, resulting in a market volume of US$80.87bn by 2029.
In global comparison, the United States is expected to generate the highest gross written premium, amounting to US$31.0bn in 2024.
In the worldwide legal insurance market, countries such as the United States and the United Kingdom have seen a surge in demand for coverage due to increasing litigation risks.

Definition:

Legal insurance is a type of coverage that provides individuals and organizations with financial support for legal expenses. When you have legal insurance, you pay regular premiums, and in return, the insurer helps cover the costs of legal services, such as attorney fees and court-related expenses. This insurance is designed to make legal assistance more accessible and affordable, ensuring that policyholders have the necessary support when they encounter legal issues or require legal advice.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Before-the-event legal protection insurance
After-the-event legal protection insurance

All other insurance types, such as life insurance and health insurance
Reinsurance

The Legal Insurance market has been experiencing significant growth and development worldwide.

Customer preferences: Customers are increasingly seeking legal insurance coverage to protect themselves from unexpected legal expenses, such as lawsuits, contract disputes, and other legal issues. This trend is driven by a growing awareness of legal risks and the benefits of having insurance coverage to mitigate these risks.

Trends in the market: In the United States, the Legal Insurance market is seeing a surge in demand as individuals and businesses look for ways to manage legal costs. With the high litigation culture in the U. S. , legal insurance provides a sense of security and financial protection. Moreover, the rise of legal tech companies offering innovative legal insurance products is reshaping the market dynamics. In Europe, countries like Germany and the Netherlands have well-established legal insurance markets, with a strong emphasis on consumer rights and access to justice. The trend towards digitalization and online legal services is driving growth in these markets, making legal insurance more accessible and convenient for customers. In Asia, particularly in countries like Japan and South Korea, the Legal Insurance market is still in the nascent stage but is poised for rapid expansion. As these economies continue to grow and legal awareness increases, the demand for legal insurance is expected to rise significantly in the coming years.

Local special circumstances: In emerging markets like Brazil and India, the Legal Insurance market faces unique challenges such as regulatory hurdles, low awareness levels, and a lack of trust in insurance products. However, with changing consumer attitudes, increasing disposable incomes, and a growing middle class, these markets present immense opportunities for legal insurance providers to expand their offerings.

Underlying macroeconomic factors: The global economic landscape, including factors like GDP growth, employment rates, and legal system efficiency, plays a crucial role in shaping the Legal Insurance market. As economies grow and legal systems evolve, the demand for legal insurance is likely to increase, driven by a greater need for legal protection and risk management. Overall, the Legal Insurance market worldwide is witnessing a period of transformation and growth, fueled by changing customer preferences, market trends, local circumstances, and underlying macroeconomic factors.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.