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The insurance market size is estimated to grow at a CAGR of 4.5% between 2022 and 2027. The insurance market size is forecast to increase by USD 1,429.64 billion. The growth of the market depends on several factors, including the increasing government regulations on mandatory insurance coverage in developing countries, the uncertain catastrophic events leading to increasing demand for insurance, and the digitalization of the insurance industry.
This insurance market report extensively covers market segmentation by distribution channel (sales personnel and insurance agencies), type (life and non-life), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing government regulations on mandatory insurance coverage in developing countries are notably driving the market growth, although factors such as the tightening regulatory environment for insurance players may impede the market growth. Our researchers analyzed the data with 2022 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.
The increasing government regulations on mandatory insurance coverage in developing countries is the key factor driving the growth of the global insurance market. 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). A visa is not issued to a person that does not have travel insurance. Moreover, the growth of various types of insurance is resulting in the rapid expansion of the global insurance market. With insurance becoming mandatory for citizens, the global insurance 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. 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 insurance products and personalized services. InsurTech is also about creating appropriate insurance 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 insurance companies. In the next ten years, the entire insurance 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.
Tightening the regulatory environment for insurance players is a major challenge to the growth of the global insurance 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 insurance organizations, individual agents, or insurance groups to assess the adequacy of their risk management capabilities. ORSA will have to analyze all rationally predictable and applicable material risks that may have an influence on the abilities of insurers to fulfill their customer obligations.
However, with the rising number of government regulations, insurance companies may face the challenge of increased prerequisites for the insurance industry. This will directly affect the global insurance market as its revenue depends on the revenue of the insurance industry in the upcoming years. Moreover, insurance 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 insurance market during the forecast period.
The 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 growth strategies.
Global Insurance 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 insurance such as Aditya Birla health insurance. Also, the company offers viscose staple fiber, metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, insulators, financial services and telecom.
The 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 insurance 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 in a persuasive and compelling way. 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. Insurance industry sales personnel specialize in a variety of insurance products such as life insurance, health insurance, 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 insurance policies to their customers. Such factors will increase segment growth during the forecast period.
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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 insurance industry is the presence of a large and wealthy middle class. This has created a huge demand for insurance 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.
In 2020, most North American countries were severely affected by the COVID-19 outbreak. This forced governments to impose lockdowns to contain the spread of COVID-19, which hampered the operations of banks and other financial institutions in the region during the initial months of 2020. However, adopting digital borrowing and lending funds is expected to boost online platforms, including insurance solutions. Also, the large-scale vaccination drives administered to every individual in the region in 2021 led to the resumption of business activities. Therefore, the majority of the low-income groups are in the process of establishing small and medium-sized businesses (SMBs) and insurance among customers. This has accelerated the demand for insurance solutions in the region, which is anticipated to further drive the growth of the regional insurance market during the forecast period.
The insurance 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.
Technavio categorizes the global insurance market as a part of the global diversified support services market within the global commercial services and supplies market. The global diversified support services market covers companies primarily providing labor-oriented support services to businesses and governments. It includes companies providing commercial cleaning services, dining and catering services, equipment repair services, industrial maintenance services, industrial auctioneers, storage and warehousing, transaction services, uniform rental services, and other business support services. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Insurance Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
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Market growth 2023-2027 |
USD 1,429.64 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.23 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 46% |
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Key countries |
US, China, Japan, UK, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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. |
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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. |
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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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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