Insurance Industry Statistics By Facts, Market Size, Country, Types, Demographics, Challenges and Opportunities
Updated · Sep 09, 2024
WHAT WE HAVE ON THIS PAGE
- Introduction
- Editor’s Choice
- Key Facts About Insurance Industry
- Insurance Industry Market size
- Forecast Of Insurance Premium Worldwide
- Health Insurance Market Share By Country
- Type of Insurance Industry Statistics
- Insurance Industry By Country
- Share Of Insurance Industry Workers
- Insurance Industry Demographics
- Insurance Industry Claims Statistics
- Life And Non-Life Insurance Premium Globally
- Leading Insurance Companies In the US
- Challenges And Opportunities
- Conclusion
Introduction
Insurance Industry Statistics: The global insurance sector has developed quickly as a result of technology breakthroughs, changes in consumer habits, and a risk environment that is more complex than ever before. The insurance space has flourished, serving businesses and people alike by providing them with the means to avert losses and unforeseen circumstances. There are two main categories of insurance, general and life, including different types of subcategories.
Although facing economic challenges, it is resilient, with remarkable growth across different segments in 2023 and 2024. In 2023, the worldwide insurance industry was estimated to be around $6.3 trillion US dollars, which is an increase of 3.5% from what it was in 2022. Increased demand for health, life, and digital products, particularly in developing countries, fueled this rise.
By 2024, it is anticipated that the market will still be experiencing a sharp rise worth about $6.6 trillion US dollars, representing an increase rate of 4.8%. This paper will present major statistics for those years, illuminating the overall status of the insurance industry Statistics.
Editor’s Choice
- The global insurance market is predicted to be $9.10 trillion by 2024, with non-life insurance being the biggest in terms of volume, with a forecast of $5.42 trillion.
- The insurance market is projected to have an average per capita spending of $1.17k in 2024. With an estimated gross written premium of $4.642 trillion in 2024, the United States is set to take a lead in the global market.
- In terms of future outlook, it is expected that between 2024 and 2028, there will be a compound annual growth rate (CAGR) of 2.15% on the total gross written premium globally, resulting in a market volume of approximately $9.91 trillion by 2028, still led by the USA.
- In 2022 specifically, the global insurance market grew significantly, reaching up to $5.946 trillion. It is also anticipated to surpass $6.466 trillion by the end of 2023.
- The worldwide cyber insurance market is expected to surpass $20.4 billion by 2025. In 2023, the American commercial auto insurance sector is predicted to amount to $453.1 billion.
- Similarly, in 2022, the U.S. commercial insurance marketplace was estimated at $136.6 billion and is forecasted to grow at a compound annual growth rate (CAGR) of 10.1%, reaching $221 billion by 2027.
- Additionally, the U.S. bond insurance industry statistics, which currently stands at $16.07 billion, is anticipated to rise to around $25.18 billion by 2027.
- Direct life insurance premiums worldwide generated over $160 billion in 2022 alone.
- According to a Forbes Advisor survey conducted in 2022, the majority of Americans had some sort of life insurance.
Key Facts About Insurance Industry
- Insurance industry statistics show that global insurance premiums for life and non-life increased by only one point, one %, in 2022 compared to 2021. With the same rate of growth going forward into 2023, premium volumes are expected to increase by 1.7 % by the end of 2024.
- By July 2023, non-life or general insurance premiums had improved by 5.8 %, while life premiums declined by four points 5 % due to inflation effects.
- In 2022, many global insurers experienced losses on their investments, especially those engaged in life and general insurance activities. Property/casualty and life/annuity premiums were worth $776.7 billion and $698.5 billion, respectively.
- Premium revenues from life insurance reached $165.1 billion by the end of 2022, an increase of 3.5% from last year’s figures.
- Revenue from annuity premiums and deposits totaled $343.3 billion, a significant growth rate of 20.1% compared with 2021.
- The accident and health premium revenue amounted to $188.7 billion at the end of 2022, although this was a small decline in growth rate by 0.3%.
- The global automobile insurance market was $817 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 7.1%, reaching $1,616.2 billion by 2032.
- The market share for North America was 38%, East Asia’s was 8.1%, and the United States was 5.8%.
Insurance Industry Market size
(Reference: enterpriseappstoday.com)
- In relation to insurance industry statistics, in the past year, from October to 2022, the global industry market size increased by 10% to $5,938.4 billion and is expected to rise to $6,478.8 billion at the end of 2023.
- The predicted growth for years to come is that the market size will increase with a compound annual growth rate (CAGR) of 9%, meaning that it will achieve $7,068.4 billion in 2024, $7,711.6 billion in 2025 and $8,398.11 billion by 2026.
Forecast Of Insurance Premium Worldwide
(Reference: statista.com)
- In relation to insurance industry statistics, the global insurance market is expected to grow by about one trillion U.S. dollars from 2023 to 2028, reaching almost 10 trillion U.S. dollars.
- Gross premiums written refer to total premiums covered by an insurer before deducting reinsurance and other associated costs.
- From 2000 until 2020, gross premiums written worldwide more than doubled, peaking at roughly 5.31 billion U.S. dollars by 2017 alone.
- The value of premiums written witnessed several years of decline after 2017 but grew by nearly 4% compared to the previous year in 2020.
- Revenue-wise, top global insurance companies as of 2022 include Berkshire Hathaway, Ping An Insurance and China Life Insurance.
- In fiscal year 2022, no other company was larger than Allianz in terms of capitalization among insurers worldwide, and its worth nearly reached 103 billion U.S. dollars.
- Global insurance behemoths like AXA, AIA, MetLife, and Chubb play an important role in shaping the world’s insurance scene with their extensive reach, diversified portfolios, and dominant position within the marketplace.
(Reference: statista.com)
- Insurance industry statistics show that the Netherlands has Europe’s largest share of direct gross premiums for domestic health insurance, accounting for one-third of the total market.
- In the Netherlands, private health insurance is compulsory, and insurers are mandated to offer a universal health care package at fixed rates, not dependent on age or health status. The
- The Dutch insurance industry’s health benefit gross premiums amounted to almost 47 billion euros in 2019.
- Germany has the world’s oldest public health care system, and it runs a statutory health insurance scheme.
- Employees contribute 50% of their wages, while employers contribute the other half towards employees’ insurance premiums.
- On the other hand, self-employed people have to pay the entire premium themselves.
- At 23.1% of its market share by 2020, Germany’s health insurance sector was larger than any other.
Type of Insurance Industry Statistics
Property and Casualty Insurance:
- When it comes to net profit margin among all insurance types, property and casualty insurance companies top the list with a whopping 23.26%.
- It covers damages caused by theft, vandalism or destruction of property. The decline in burglar incidents by 48.5% since 2010 has made this type of insurance profitable.
- Between 2017 and 2018, net income for property and casualty insurance firms increased significantly from $38.7 billion to $57.9 billion, or 49.5%.
- Property and casualty premiums account for 48% of the total premium in the insurance industry.
Life And Annuity Insurance:
- Among the $1.4 trillion net premiums written in 2021, life and annuity insurers accounted for 52% and property and casualty insurers comprised 48%.
- A substantial portion of the population—approximately 16%—appreciates the need for life insurance but does not own one, which translates to about 41 million possible clients.
- Families typically face economic hardships following the death of the main breadwinner since one out of three experiences problems with getting through month’s bills as early as thirty days after their passing.
Travel Insurance:
- Like most people, 38% of Americans purchase travel insurance. Interestingly, 88% of buyers use it to protect themselves from trip cancellations, which is the main reason for buying it.
Insurance Industry By Country
- According to insurance industry statistics, global insurance premiums reached $283 million, representing an increase of 7.54% compared to the previous year.
- The United States thus led in this sector in 2022, as every other country has insurance premiums and a year-on-year growth rate of premiums.
- The United Kingdom: $437K (5.94%)
- Japan: $400K (5.17%)
- Germany: $347K (7.33%)
- France: $341K (6.52%)
- South Korea: $205K (7.74%)
- Italy: $161K (5.92%)
- Netherlands: $90K (8.45%)
- Canada: $87K (5.42%)
- Spain: $75K (5.62%)
- In the United States, salaries and wages in the insurance industry are expected to reach $170.529K by the end of 2023.
- At year-end 2022, the United States had a 43.7% global market share of the insurance industry, with China at 10.3%, the UK at 5.4%, Japan at 5%, Germany at 3.6%, France at 3.9%, South Korea at 2.7%, Italy at 2.4%, the Netherlands at 1.25%, Canada at 2.5%, and Spain at 1%.
(Reference: zippia.com)
- Based on the average salary of employees in the insurance sector in May 2022, the average annual income was $67,421, and it varied depending on experience, job group, location, and education level.
- Approximately 39% of workers globally earned between $22.5K and $44.5K a year, which is the customary range for remuneration.
- The second group, made up of 20% of people, took home between $44.5K and less than $66.5K. Meanwhile, over $88.5K constitutes more than one-fifth of this population, which leaves just over 15% taking home amounts ranging from $533,000 to $75,000.
Insurance Industry Demographics
Whole Life Insurance Protection:
- Age 18-25: 25% have life insurance (both work-related and individual).
- Age 26-41: 18% possibility of life insurance.
- Age 42-57: 20% of people possess life insurance.
- Age 58-76: 5% that hold life insurance.
- Over 77 years old: 25% carry a life insurance policy.
Worksite Life Insurance:
- Age 18-25: 23% are covered by work-related policies.
- Age 26-41: 26% utilize their employment to sign up for the coverage.
- Age 42-57: 22% use The Company as their source of insurance.
- Age 58-76: 23% receive this type of coverage from their company.
- Over 77 years old: 1% get job-based life cover from the firm they work with.
Individual Life Insurance Policies:
- Persons aged 18-25 years: 38% possess individual life insurance.
- Persons aged 26-41 years: 33% possess individual life insurance.
- Persons aged 42-57 years: 30% possess individual life insurance.
- For persons aged 58-76 years, 30% possess individual life insurance.
- For persons aged seventy-seven years and above, 44% possess individual life insurance.
No Life Insurance Coverage:
- Persons aged 18-25 years: 9% do not possess any life insurance.
- Persons aged 26-41 years: 13% do not possess any life insurance.
- Persons aged 42-57 years: 19% do not possess any life insurance.
- Persons aged 58-76 years: 39% do not possess any life insurance.
- For persons aged seventy-seven years and above, 25 % do not possess any life insurance.
Insurance Industry Claims Statistics
- In case of a claim, 55% of Americans with home insurance say that their insurer would pay for replacement costs.
- 25% of policyholders hope to receive the actual cash value.
- 20% expect to be compensated at market value.
- There were 76,860 claims for lightning-related losses, with a total worth of $920.1 million.
- European insurers paid out €997 billion in claims and benefits altogether.
- On average, the industry paid €2.73 billion in claims and benefits per day.
- A life insurance benefit is, on average, €1,046 per person.
- Health insurance claims cost €203 on average, while motor insurance claims and property insurance claims cost €176 and €107, respectively.
- The healthcare sector generated approximately 25 % of the cyber insurance claims filed between 2013 and 2019.
- In 2019, cyber insurance claims from the healthcare sector accounted for 22.7% of all such claims.
- For cyber insurance policyholders, the mean claim payment made in 2019 was $4.88 million.
Life And Non-Life Insurance Premium Globally
(Reference: statista.com)
- The insurance industry statistics depict the gross life and non-life insurance premiums by year worldwide from 2006 to 2022. Unfortunately, it is impossible to comprehend how insurance industry officials are supposed to manage companies which are too big to fail because of this report’s figures.
- In fact, in 2022, approximately $2.81 trillion was added to global life insurance premiums, while that of non-life was approximated at $3.97 trillion that same year.
Leading Insurance Companies In the US
(Reference: statista.com)
- Insurance industry statistics reveal that in mid-November 2020, MetLife, a New York City-headquartered firm, became the number one American insurer with approximately $898.8 billion of assets.
- The US is still the largest insurance market in the world.
- As of 2015, the total direct insurance premiums in America amounted to 1.32 trillion US dollars, making it the biggest market on earth.
- Japan came second in this line of business, with a total direct premium worth about 449 billion US dollars.
Challenges And Opportunities
- Although it faces numerous hurdles, the insurance sector exhibits resistance. Insurers remain greatly concerned about economic fluctuations, legislative transformations, and climate-related risks.
- Additionally, the increasing number of cyber threats has led to the creation of new products aimed at covering digital-related risks, and a budding market for cyber insurance has emerged.
- Nonetheless, this sector also provides several avenues for growth. Future growth will be fueled by increased demand for customized Insurance products, growing digital insurance platforms, and greater emphasis on sustainable insurance practices.
- Moreover, insurance industry statistics offer great potential for expansion, especially in developing countries where consumers are becoming increasingly aware of its advantages.
Conclusion
The Insurance Industry statistics have proven to be extremely flexible and resilient when faced with diverse types of economic and environmental disturbances. According to insurance industry statistics, the global market is set to expand from USD 6.3 trillion in 2023 to USD 6.6 trillion in 2024. Therefore, this industry is bound for more growth. Life, health, property, and casualty insurance will continue to be key areas in which expansion occurs, while digital insurance and insurtech developments are likely to assume greater significance throughout the time ahead. However, insurers’ success in harnessing these prospects and contending with challenges will depend upon their readiness to change materialistically or otherwise according to what consumers want alongside making use of technological progressions (they could use a lack of adaptedness).
Sources
FAQ.
Appropriately, the worldwide insurance market is estimated to be almost $6.3 trillion as of 2023. This is set to increase to nearly $6.6 trillion by 2024. It is projected that this market will experience a compound annual growth rate (CAGR) of 4.8% from 2023 to 2024 consecutively.
On record, America is the leader in the global insurance market. In 2022, the country’s total gross insurance premiums amount to $2.83 trillion, which translates into a year-on-year growth rate of 7.54 %. By the end of 2022, the U.S.A. is said to have an estimated share of around 43.7%, thereby maintaining its leading position.
Generally speaking, there are two broad categories under which insurance companies fall, namely life and non-life insurance sector-wise. Furthermore, property and casualty insurers typically make more money than anybody else at 23.26%.
In Europe, the Netherlands has the largest share of direct gross premiums for domestic health insurance, accounting for one-third of the market. In contrast, Germany’s health insurance sector holds a market share of 23.1%. The Netherlands requires private health insurance, while Germany operates a statutory health insurance system.
The global cyber insurance market is expected to surpass $20.4 billion by 2025. In 2019, cyber insurance claims from the healthcare sector comprised 22.7% of all such claims, with an average claim settlement amounting to $4.88 million. This reflects the growing importance and demand for coverage against digital risks.
Tajammul Pangarkar is the co-founder of a PR firm and the Chief Technology Officer at Prudour Research Firm. With a Bachelor of Engineering in Information Technology from Shivaji University, Tajammul brings over ten years of expertise in digital marketing to his roles. He excels at gathering and analyzing data, producing detailed statistics on various trending topics that help shape industry perspectives. Tajammul's deep-seated experience in mobile technology and industry research often shines through in his insightful analyses. He is keen on decoding tech trends, examining mobile applications, and enhancing general tech awareness. His writings frequently appear in numerous industry-specific magazines and forums, where he shares his knowledge and insights. When he's not immersed in technology, Tajammul enjoys playing table tennis. This hobby provides him with a refreshing break and allows him to engage in something he loves outside of his professional life. Whether he's analyzing data or serving a fast ball, Tajammul demonstrates dedication and passion in every endeavor.
