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The insurance market size is forecast to increase by USD 1,401.1 billion, at a CAGR of 4.25% between 2023 and 2028. 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 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. One-third of the market is dominated by property and casualty insurance. Life insurance accounts for the majority of the market. A significant portion of premiums are paid by individuals, while the remaining rest comes from businesses. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The insurance brokerage market, with its direct insurance providers and reinsurance providers, is experiencing growth fueled by insurance analytics trends and insurance data analysis. Actuarial calculations play a crucial role in determining policyholder premiums and coverage, particularly for chronic diseases and surgical costs. With the increasing prevalence of chronic conditions like kidney failure, insurance companies are adapting to provide adequate coverage. The insurance sector analysis indicates a rising demand for general cover, especially in areas like factory and workplace insurance. The insurance market size is determined by factors such as population size, economic conditions, and regulatory environment. Companies explore annuity options, impacting the market growth and forecasting. Comprehensive market research and growth analysis inform the company, guiding strategic decisions. The market forecast, rooted in rigorous analysis and market trends, becomes an invaluable tool for insurers to anticipate shifts and capitalize on emerging opportunities. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Motor vehicle insurance is compulsory in most countries around the world when driving a vehicle on public roads is a key factor driving the insurance market growth rate. 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 insurance market size. 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 companies 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 market trend of purchasing insurance over the insurance software application is increasing worldwide.
Moreover, the importance of InsurTech is increasing at a rapid pace among companies. In the next ten years, the entire insurance process outsourcing and other processes are 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 size has witnessed an increase in the collaboration of investors with InsurTech firms. Hence, the above-mentioned factors are expected to fuel the market growth rate during the forecast period.
Tightening the regulatory environment for players is a major challenge to the growth of the insurance market size. 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, companies 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 forecasting 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies 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 research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies 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 2.88 billion in 2018. 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.
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North America is estimated to contribute 37% 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The insurance market report encompasses a vast array of entities and policies designed to provide financial protection and reimbursement in the event of damages or losses. Insurance company, also known as insurers, offer various policies tailored to individual needs, including non-life insurance, home life cover, Health Support Cover policies, and pension annuity policies. Consumers typically pay premiums to the insurer, with the policy limit and the deductible determining the extent of coverage. In return, insurers commit to compensating policyholders for covered losses or damages, as outlined in the insurance contract. With the rise of cyber threats, cyber insurance has become increasingly important, offering coverage for data breaches and cyberattacks. Additionally, initiatives like universal health coverage aim to provide health assistance and hospitalization benefits to all individuals. Market analysis reports indicate significant growth in the insurance industry market size, driven by evolving market trends such as premium reductions and advancements in health and life cover policies. As insurers continue to adapt to changing consumer needs, the market remains a crucial component of global financial security.
Further, the market encompasses a diverse range of insurance companies and policies designed to provide financial compensation and protection against various risks. Policyholders typically select coverage options with specific policy limit and the deductible, determining the extent of their insurance claims. Insurance firm offer a variety of policies, including health support cover policies, life support cover policies, and survival annuity policies, aimed at addressing different needs and circumstances. Initiatives like Universal Health Coverage (UHC) seek to ensure that individuals have access to essential health services, further expanding the reach of insurance coverage. The market analysis report indicates steady growth in the market size, driven by increasing demand for insurance products and services worldwide. As insurers continue to adapt to evolving market trends and consumer preferences remain a critical component of global financial stability, providing peace of mind and security to individuals and businesses alike.
Additionally, in the global market, insurance company cater to diverse needs, offering a wide range of policies both online and offline. From corporate insurance to individual coverage like term life insurance, whole life insurance, and variable life Insurance, the market addresses various risks, including natural disasters and cyber threats. Demographic changes and internet penetration influence market dynamics, with insurers adapting to emerging risks like cyber-crime and network failure liability. Property theft, business interruption, and critical illness also drive demand for insurance coverage. With options for hospitalization, health insurance policies, and medical check-ups, insurers strive to provide comprehensive protection against both traditional and internet-based risks, ensuring financial security for individuals.
Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.25% |
Market Growth 2024-2028 |
USD 1,401.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.08 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, Japan, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks, Insurance Market Industry Report |
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 |
Insurance analytics market, Parent market analysis, Market Forecast, 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 the forecast period, insurance market growth analysis |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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