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The insurance market is estimated to be worth USD 7,234.38 billion in 2027 at a CAGR of 4.5% between 2022 and 2027. The increasing government regulations on mandatory coverage in developing countries is the key factor driving the market growth and trends. Reinsurance plays a crucial role in the insurance market by allowing insurers to transfer some of their risk to other parties. Technological advancements have led to the rise of insurtech companies, which use digital platforms and data analytics to provide innovative insurance solutions.
Overview of the Insurance Market:
Analysis Period | 2017-2027 |
Market Size (2017) Historic Year | USD 4807.98 billion |
Market Size (2027) - Forecasted Year | USD 7234.38 billion |
Historic Opportunity (2017-2021) | USD 768.14 billion |
Historic CAGR | 3.77 % |
Forecasted Opportunity (2023-2027) | USD 1429.64 billion |
Market Opportunity Transformation Growth | 50.47 % |
Market Opportunity Capitalization | USD 2197.78 billion |
One-third of the insurance market is dominated by property and casualty insurance. Life insurance accounts for the majority of the global insurance market. A significant portion of premiums are paid by individuals, while the remaining rest comes from businesses.
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The size of the market is determined by factors such as population size, economic conditions, and regulatory environment. Companies explore annuity options, impacting market growth and forecasting. Comprehensive market research and growth analysis inform company, guiding strategic decisions. The market forecast, rooted in rigorous analysis and trends, becomes an invaluable tool for insurers to anticipate shifts and capitalize on emerging opportunities. A holistic approach to market analysis and reporting further enhances the understanding of the industry's evolution, ensuring a proactive stance in the ever-changing landscape. The industry employs a considerable workforce globally.
Motor vehicle insurance is compulsory in most countries around the world when driving a vehicle on public roads. In some countries, such as India, it is compulsory to have automobile insurance for vehicles on public roads. For example, anyone who owns or drives a vehicle in Maine, USA must have at least the minimum amount of insurance required by law.
Similarly, health insurance is mandatory in most developed countries. Travel insurance is mandatory for a person traveling to a foreign country (most developed countries). With insurance becoming mandatory for citizens, the global market is expected to experience significant growth during the forecast period.
Investors collaborating with InsurTech firms is the primary trend in the global market. The use of technology has transformed the entire insurance value chain. This includes transforming the costing process, improving the consumer experience, increasing process transparency, reducing fraud (including big data to enhance security and data analysis), and simplifying the customer complaint process. The focus of InsurTech vendors is on the growing demands of consumers for the sophisticated customization of products and personalized services. InsurTech is also about creating appropriate coverage for an individual. The trend of purchasing insurance over an application is increasing worldwide.
Moreover, the importance of InsurTech is increasing at a rapid pace among companies. In the next ten years, the entire process is expected to become digital and will not require the involvement of any form of physical interference during the forecast period. Therefore, owing to such factors, the market has witnessed an increase in the collaboration of investors with InsurTech firms. Hence, the above-mentioned factors are expected to fuel the growth of the market in focus during the forecast period.
The future outlook for the market showcases a map of evolving trends and challenges. Hardening policies, especially in sectors like aviation and cybersecurity, demonstrate a proactive approach to risk management. Car insurance adapts to changing dynamics, with innovations like Alfred, introducing new paradigms. In global hubs like London and Dubai, the landscape transforms, responding to regional nuances. Supply chain vulnerabilities necessitate strategic adjustments, reflected in industry diagrams and infographics. The interplay of technological advancements and emerging risks shape the future of insurance, creating a dynamic landscape where adaptability is key to navigating the evolving challenges and opportunities.
Tightening the regulatory environment for players is a major challenge to the growth of the market. Regulatory bodies around the world are enacting new laws and regulations based on the latest industry requirements. Recently, the NAIC developed the Own Risk and Solvency Assessment (ORSA), an add-on to the required assessment framework. ORSA is an internal process that must be carried out by organizations, individual agents, or groups to assess the adequacy of their risk management capabilities. ORSA will have to analyze all rationally predictable and applicable material risks that may influence the abilities of insurers to fulfill their customer obligations.
However, with the rising number of government regulations, companies may face the challenge of increased prerequisites for the industry. This will directly affect the market as its revenue depends on the revenue of the insurance industry in the upcoming years. Moreover, vendors need to continuously upgrade their service offerings to comply with changing laws and regulations. Hence, such factors are expected to hinder the growth of the global market during the forecast period.
The market's regulatory framework and compliance standards are vital to safeguard policyholders and maintain a competitive yet secure sector. Brokers and underwriters navigate intricate rules, ensuring adherence to guidelines that protect insured individuals. Deductibles and liability considerations form integral components, shaping indemnity structures. Regulatory measures promote fair competition, ensuring the insurance sector thrives while upholding policyholder protection. A robust framework balances the interests of insurers, brokers, and policyholders, fostering transparency and reliability within the industry. Complying with these regulations is essential for sustaining a resilient and trustworthy market that prioritizes the needs and protection of its diverse clientele.
Insurance companies offer a variety of policies including life, health, auto, and property insurance. The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aditya Birla Management Corp. Pvt. Ltd.: The company offers Aditya Birla health insurance.
The market analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the sales personnel segment will be significant during the forecast period. Given the competitive nature of the industry, sales personnel play a crucial role in developing and maintaining the brand image of a company. They must be able to communicate the vision, values, and benefits of a company to customers persuasively and compellingly. To be successful in this role, sales personnel must possess strong communication skills, both verbal and written. Such factors will increase segment growth during the forecast period.
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The sales personnel segment was valued at USD 2,776.61 billion in 2017 and continue to grow by 2021. Sales personnel are often the first points of contact between insurers and insurers and play a key role in building and maintaining long-term customer relationships. The industry sales personnel specialize in a variety of insurance products such as life, health, auto insurance, and property and casualty insurance. Sales personnel must be familiar with the features and benefits of these products and be able to clearly and concisely explain the intricacies of policies to their customers. Such factors will increase segment growth during the forecast period.
In the dynamic landscape of the sector in the United States, diverse coverage options cater to the needs of individuals and homeowners alike. These sectors address various risks, mitigating financial losses through policies like homeowners and annuities. The menu of offerings spans health, property, and life, each tailored to specific needs. News continually shapes this sector, influencing policies and regulations. Annuities provide a steady income stream, while homeowners insurance protects against property-related risks. Understanding the intricate web of coverage options is essential in navigating the multifaceted the sector and securing comprehensive protection for individuals and their assets.
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North America is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the factors contributing to the growth of the North American industry is the presence of a large and wealthy middle class. This has created a huge demand for products, especially life insurance and annuities, as consumers seek to secure their future financial security and protect their loved ones. In addition, the aging population in North America is increasing the demand for long-term care and health insurance products. Such factors will increase the market growth in this region during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Who are the main players in the market?
Ans: The major players in the market include Allianz SE, American International Group Inc., AXA Group, Bank of America Corp.
What are some emerging trends in the industry?
Ans: The major trend in the market is the integration of wearables into customer engagement metrics for life insurance software.
What are some challenges faced by the industry?
Ans: One of the major challenges faced by the industry is the tightening regulatory environment for insurance players
What role does innovation play in the market?
Ans: Innovation in the market is essential for enhancing customer experiences, optimizing risk assessment, and developing new products and services to address emerging challenges and opportunities.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
Market growth 2023-2027 |
USD 1,429.64 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.23 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 46% |
Key countries |
US, China, Japan, UK, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aditya Birla Management Corp. Pvt. Ltd., Allianz SE, American International Group Inc., AXA Group, Bank of America Corp., Berkshire Hathaway Inc., Canara Bank, Citigroup Inc., Go Digit General Insurance Ltd., HDFC Ltd., JPMorgan Chase and Co., Kotak Mahindra Bank Ltd., Life Insurance Corp. of India, Microsoft Corp., State Bank of India, Tata Sons Pvt. Ltd., The PNC Financial Services Group Inc., Truist Financial Corp., U.S. Bancorp, and Wells Fargo and Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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