The global insurance market, including life and non-life insurance, has grown by 25% in the past four years with the total value of insurance premiums rising from just under $8-trillion in 2018 to over $9-trillion this year.
And, although the annual growth rate significantly slowed after the 2021 peak, the entire market is still on the brink of setting a new record and reaching a spending record in the coming years.
According to data presented by Stocklytics.com, global insurance spending is expected to grow by a further 10% and hit almost $10-trillion by 2028.
Economic growth, a rising middle class, technological advancements like InsurTech which made insurance products more accessible and affordable through digital platforms, and the evolving risk landscape have fuelled the insurance market`s growth. Back in 2017, the gross written premium in the global insurance market amounted to $7,24-trillion, according to a Statista survey. By the end of 2020, this figure jumped to almost $8-trillion.
However, the Covid-19 pandemic fuelled the market growth highlighting the importance of health and life insurance and making companies aware of the need for coverage against business interruption and other pandemic-related risks. As a result, total insurance spending jumped by 8,6% to $8,64-trillion in 2021 – the highest annual increase so far.
Although the last three years have seen much smaller growth rates – ranging between 2,5% and 3,5% per year – total insurance spending still climbed to $9,09-trillion in 2024 as new markets emerge and existing ones expand their insurance needs. This rising trend will continue in the coming years with global insurance spending growing by an average of $200-billion per year and jumping to $9,91-trillion by 2028.
In global comparison, the US will remain the absolute leader in the insurance landscape generating almost half the global premiums. Statista expects gross written premium in the US market to grow by 11% and hit $5,15-trillion by 2028 – more than the European and Asian markets combined. These two regions will see much smaller insurance spending growth in the coming years. According to Statista, Asian insurance spending will grow by 7,9% and hit $2,2-trillion by 2028. The European market follows with a 4,2% growth and $1,73-trillion in total insurance premiums in this period.
Analysed by segments, non-life insurance will continue fuelling the market growth rising much faster than the life insurance sector or the entire market. Statista expects the total insurance premiums in the non-life segment to increase by 10,5% and hit close to $6-trillion in the next four years. The life insurance segment will grow by 6,8% in this period and hit a $3,92-trillion value.
However, the loss ratio in the non-life insurance market is expected to increase from 45,3% to 46,4% in the next four years with the total value of gross claim payments rising from $2,46-trillion to $2,78-trillion.
On the other hand, the life insurance sector will see its loss ratio drop from 57% to 56% in this period with the total value of insurance claim payments reaching $2,19-trillion by 2028.