Forecast of the global insurance market 2028 | Statista (2024)

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Forecast of the global insurance market 2028 | Statista? ›

Looking ahead, the gross written premium is anticipated to show an annual growth rate of 2.15% (CAGR 2024-2028), resulting in a market volume of US$9.91tn by 2028.

The Life insurance market market in the United States is projected to reach a market size (gross written premium) of US$1.27tn in 2024. The average spending per capita in the Life insurance market market is estimated to be US$3.72k in 2024.

Market size

Insurance is one of the largest industries in the world, with a global market value greater than the gross domestic product (GDP) of many countries. While estimates can vary, most sources put the figure at around 6.8 trillion U.S. dollars of insurance premiums written in 2022.

The insurance industry has a promising future, but it must remain agile and innovative in their approach. By embracing new technologies and meeting the changing needs of policyholders, insurance companies can remain competitive and relevant in a rapidly evolving landscape.

Estimated size of the global insurance market 2017-2023, with forecasts until 2028. It is forecast that the global insurance market will grow by about one trillion U.S. dollars between 2023 and 2028, reaching almost 10 trillion U.S. dollars.

We estimate that global life premiums will grow by 2.9% in real terms in 2024, well above the annual average of the previous decade (0.8%), and by 2.7% in 2025. In non-life, rate hardening, especially in personal lines, will drive growth.

Looking ahead, new products, with more flexible features, and stronger digital experiences are necessary to enable the business model transformations many insurers want to enact. Stronger ecosystem business models will also become the primary platform for customer engagement in the future.

What Is the Wealthiest Insurance Company in the World? While United Health Group is the largest insurance company by revenue, it is dwarfed by Berkshire Hathaway in terms of net income and market cap.

Market share of the total insurance market worldwide 2000-2022, by country. Between 2000 and 2022, the United States has consistently held the largest share of the insurance market globally. Alone, the U.S. made up almost 58 percent of the entire insurance market in 2022.

On an individual country basis, the US has the highest number of life insurers on the top 50 list, with eight. MetLife Inc., the largest life insurance company based in the US, ranks seventh on the list of the largest global life insurers.

What is the biggest threat to the insurance industry? ›

Today's insurers are exposed to multiple risks, from financial risks, such as shifting interest rates, changing costs and sources of capital, and increasing claims levels due to consecutive years of significant inflation, to an array of nonfinancial risks, including extreme climate events and generative AI (gen AI).

Leading insurers will use automation and empathy during the next decade to reach outcomes such as driving revenues and policies in force, optimizing expenses, and minimizing risks. Overall, the future of the insurance industry looks exciting. As technology advances and the world changes, insurers must adapt.

While it is not common, insurance companies can and do go insolvent. Policyholders can take steps to protect themselves by purchasing insurance from financially stable companies and regularly reviewing their policies.

The primary reason is compensation—nearly 60% of those leaving the industry stated their pay was the primary reason for leaving. Work-life balance followed close behind, factoring into over 50% of responses.

In addition, life insurance ownership among adults in the United States declined from 63 percent in 2011 to 52 percent in 2023.

The cash value in a whole life insurance policy grows at a fixed rate determined by the policy's terms. Typically, this accumulation begins slowly and picks up pace over time. When you pay your premiums, a portion is allocated to the policy's cash value. Over time, this contributes to its steady growth.

Is Life Insurance a Smart Investment? Using permanent life insurance as an investment might make sense for certain high-net-worth individuals looking to minimize estate taxes. 16 But for the average person, buying term and investing the difference is usually the better option.

But when times are tough, we tend to focus simply on survival. If we're struggling to pay for everyday expenses, it's hard to see the value in investments that seem like extras. In an economic downturn or a recession, life insurance is more important than ever.