Insurances

The Insurances market worldwide is projected to reach a market size of US$8.02tn in 2024.
In this market, Non-Life Insurances dominates with a projected market volume of US$4.46tn in the same year.
The average spending per capita in the Insurances market is expected to amount to US$1.03k in 2024.
When comparing the global market, it is evident that the United States holds the highest nominal value, with an estimated gross written premium of US$3.8tn in 2024.
Looking ahead, the gross written premium is anticipated to show an annual growth rate of 2.39% (CAGR 2024-2029), resulting in a market volume of US$9.02tn by 2029.
Once again, the United States is expected to generate the highest gross written premium, reaching US$3.8tn in 2024.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The global insurance market is experiencing significant growth and evolution.

Customer preferences: Customers worldwide are increasingly seeking personalized insurance products that cater to their specific needs and lifestyles. There is a growing demand for digital insurance solutions that offer convenience and flexibility, allowing customers to manage their policies online. Additionally, there is a rising interest in sustainable and ethical insurance options that align with customers' values and support environmental and social causes.

Trends in the market: In the United States, the insurance market is seeing a rise in usage-based insurance, where premiums are based on individual behavior monitored through technology. This trend is driven by the desire for more affordable options and the ability to reward safe driving practices. In Europe, there is a growing focus on insurtech innovations that streamline processes and enhance the overall customer experience. Insurtech startups are disrupting the traditional insurance market by offering new digital solutions and improving efficiency.

Local special circumstances: In emerging markets such as Southeast Asia, insurance penetration is relatively low compared to other regions. This presents opportunities for insurers to expand their reach and educate the population on the importance of insurance coverage. In countries like India, government initiatives promoting insurance inclusion and awareness are driving market growth. Insurers are also adapting their products to suit the needs of diverse populations and offer more affordable options.

Underlying macroeconomic factors: The global insurance market is influenced by various macroeconomic factors such as interest rates, inflation, and economic growth. Low-interest rates can impact insurers' investment returns and profitability, prompting them to adjust their pricing strategies. Economic growth and stability contribute to an increase in disposable income, leading to higher demand for insurance products. Inflation rates also play a role in pricing and determining the value of insurance coverage for customers. Overall, the insurance market is closely tied to the broader economic landscape and undergoes fluctuations in response to macroeconomic conditions.

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.