Insurance Global Market Report 2024

The insurance market size has grown strongly in recent years. It will grow from $7265.22 billion in 2023 to $7793.45 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The growth observed in the historical period can be attributed to several factors including the globalization of insurance services, demographic shifts with an aging population, occurrences of natural disasters, changes in consumer behavior, and the expansion of distribution channels within the insurance sector.

The insurance market size is expected to see strong growth in the next few years. It will grow to $10288.43 billion in 2028 at a compound annual growth rate (CAGR) of 7.2%. Forecasted growth is fueled by digital transformation, cyber insurance emphasis, population health management, addressing climate change risks, and the emergence of climate risk insurance. Major trends include insurtech collaborations, AI-driven personalization, blockchain for efficiency, customer-centric digital experiences, and regulatory technology (regtech) integration within the insurance sector.

The surge in internet penetration and the escalating risks associated with online transactions have propelled the demand for cyber insurance. This type of insurance provides coverage for risks linked to internet use and information technology infrastructure, encompassing areas such as property theft, business interruption, software and data loss, cyber extortion, network failure liability, cyber-crime, and physical asset damage. Notably, in 2021, as reported by the National Health Authority of India, the country experienced remarkable growth, with 1.18 billion mobile connections, 600 million smartphones, and 700 million internet users. This trend continues to escalate by 25 million users every quarter, emphasizing the increasing importance of cyber insurance.

The anticipated growth in the insurance market is driven by the rising aging population. As demographics shift towards an older population, typically individuals aged 65 and above, there is a heightened demand for healthcare services, including frequent medical check-ups, medications, and treatments for age-related conditions. This increased need for healthcare services translates into a corresponding surge in the demand for health insurance policies tailored to cater to the specific requirements of the elderly. In October 2022, a World Health Organization report highlighted the global trend, projecting that by 2030, one in six individuals worldwide will be 60 or older, with an estimated 2.1 billion people aged 60 and above by 2050. The insurance market is thus significantly influenced by the demographic shift towards an aging population.

Leading firms within the insurance market are embracing cutting-edge technologies, exemplified by the integration of AI-powered tools such as PolicyGPT, as part of their strategic initiatives to maintain a competitive edge. PolicyGPT, an artificial intelligence-driven solution, is designed to offer clients comprehensive insights into their insurance policies through natural language interactions with a chatbot. An illustrative example is the April 2023 launch of PolicyGPT by Plum Benefits Private Limited, an India-based health insurance company. The PolicyGPT chatbot, utilizing the Open AI GPT-3 architecture, delivers detailed information to individuals regarding their health insurance policies from Plum. By leveraging user policy data and a comprehensive understanding of health insurance, PolicyGPT aims to empower users with insights into their coverage.

The emergence of peer-to-peer insurance is gaining traction on a global scale, presenting opportunities in both emerging and developed markets. This shift is propelled by the lowered premium costs observed in emerging economies due to enhanced internet penetration. Peer-to-peer insurance operates on the principle of pooling insurance premiums from participating individuals, creating a collective fund that can be utilized to offset potential future losses. The remaining funds are then distributed among the participating individuals. This innovative approach seeks to diminish premium and overhead expenses compared to traditional insurance providers, streamline processes, and enhance business transparency.

Major companies operating in the insurance market report are Berkshire Hathaway Inc.; Centene; Anthem Inc.; Allianz Group; Axa Group; Assicurazioni Generali S.p.A.; Humana; State Farm Mutual Automobile Insurance Company; People's Insurance Company of China; Japan Post Group; Nationwide Mutual Insurance Company; Allstate Corporation; Liberty Mutual Holding Company Inc.; Chubb Limited; The Travelers Companies Inc.; Fairfax Financial Holdings Limited; The Hartford Financial Services Group Inc.; American Family Insurance Group; CNA Financial Corporation; Markel Corporation; W. R. Berkley Corporation; Auto-Owners Insurance Company; The Cincinnati Insurance Companies; Erie Insurance Group; AmTrust Financial Services Inc.; The Hanover Insurance Group Inc.; Church Mutual Insurance Company; Brotherhood Mutual Insurance Company; Ping An Insurance; China Life Insurance; Tokio Marine & Nichido Fire Insurance Co. Ltd.; Farmers Group Inc.; Tata AIG General Insurance Company Limited; GNY Insurance Companies.

North America was the largest region in the insurance market in 2023. Asia-Pacific was the second largest region in the insurance market. The regions covered in the insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the insurance market report are Australia; China; India; Indonesia; Japan; South Korea; Bangladesh; Thailand; Vietnam; Malaysia; Singapore; Philippines; Hong Kong; New Zealand; USA; Canada; Mexico; Brazil; Chile; Argentina; Colombia; Peru; France; Germany; UK; Austria; Belgium; Denmark; Finland; Ireland; Italy; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa. The insurance market consists of sales of insurance products by entities that undertake underwriting (assuming the risk and assigning premiums) on annuities and insurance policies. Insurance providers invest premiums to build up a portfolio of financial assets to be used against future claims. Direct insurance providers are entities that are engaged in primary underwriting and assuming the risk of annuities and insurance policies. Reinsurance providers are businesses that assume all or part of the risk associated with an existing insurance policy or set of policies, originally underwritten by another insurance carrier (direct insurance carrier). The insurance industry is categorized on the basis of the business model of the firms present in the industry. Some insurance firms may offer other services financial or otherwise. Contributions and premiums are set on the basis of actuarial calculations of probable payouts based on risk factors from experience tables and expected investment returns on reserves. The value of the market is based on the premiums paid by those insured, both commercial and personal. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The primary categories of insurance include life insurance, property and casualty insurance, and health and medical insurance. Life insurance provides coverage for critical benefits throughout an individual's lifetime. These insurance services are accessible through online and offline channels and are utilized by both corporate entities and individual consumers.

The insurance research report is one of a series of new reports that provides insurance statistics, including the insurance industry's global market size, regional shares, competitors with insurance shares, detailed insurance segments, market trends and opportunities, and any further data you may need to thrive in the insurance industry. This insurance research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.