The insurance sector rebounded relatively quickly from the coronavirus (COVID-19) pandemic. However, inflation is the next hurdle for this industry for two reasons: First, rising inflation increases the cost of buying insurance for consumers who may avoid purchasing certain non-mandatory types of insurance, such as travel insurance or pet insurance. In a 2022 survey, 18 percent of UK insurance customers said that they would spend less on travel insurance due to inflation. Secondly, inflation results in rising claims costs, especially for non-life insurance providers. In response to inflation, many central banks hiked interest rates in 2022, which will improve investment returns for insurance companies who are significant institutional investors.
Life and non-life insurance direct premiums written globally from 2006 to 2022 (in trillion U.S. dollars)
Further details: Visit original statistic Life and non-life insurance direct premiums written globally from 2006 to 2022 (in trillion U.S. dollars)
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. For perspective, the only two countries with a higher GDP than this in 2022 were the U.S. and China – making the global insurance industry larger than the overall economy of countries such as Japan, Germany, and the UK.
Global insurance industryDistribution of life and health, and property and casualty insurance direct premiums written globally from 2008 to 2023
Further details: Visit original statistic Distribution of life and health, and property and casualty insurance direct premiums written globally from 2008 to 2023
Historically life insurance has been the largest segment of the global insurance market, accounting for 55 to 60 percent of the market since at least 2006. This changed in 2017 though, with the non-life segment achieving a market share of about 53 percent. Non-life insurance relates to the protection of material and financial possessions such homes and cars. Conversely, life insurance covers insurances relating to the life and death of a person, including health insurance in many countries.
Non-life insurance worldwideNumber of open insurance users worldwide in 2021, with forecasts for 2024 and 2032 (in millions)
Further details: Visit original statistic Number of open insurance users worldwide in 2021, with forecasts for 2024 and 2032 (in millions)
Open insurance is posed to become the "the next big thing" in the insurance sector and is a similar idea to open banking. Open insurance refers to insurance-related personal and non-personal data and is usually accessed and shared via APIs. By 2032, there are estimated to be more than 800 million open insurance users worldwide.
Insurtech worldwideLeading global insurance companies worldwide in 2022, by revenue (in billion U.S. dollars)
Further details: Visit original statistic Leading global insurance companies worldwide in 2022, by revenue (in billion U.S. dollars)
Based on revenue, the largest insurance company in the world is U.S.-based Berkshire Hathaway, who recorded an annual revenue of over 300 billion dollars in 2022. This ranking is somewhat misleading though, as Berkshire Hathaway are a holding company with investments across many industries. The next largest insurance companies – whose revenue is tied more directly to the insurance industry – are Chinese company Ping An, China Life Insurance, and German insurer Allianz.
Ping AnLeading life and nonlife direct premium writing countries globally in 2022, by value of premiums (in billion U.S. dollars)
Further details: Visit original statistic Leading life and nonlife direct premium writing countries globally in 2022, by value of premiums (in billion U.S. dollars)
The largest insurance market in the world is the United States, followed by China and Japan. The value of insurance premiums written in the U.S. alone exceeds the value of premiums written in the next eight largest insurance markets.
Insurance in the U.S.
While often being at the forefront of technological innovation, at its core the insurance industry is almost as old as civilization itself. The two core concepts of insurance – shifting losses from the individual to the group by pooling funds and implementing risk mitigation measures, and the (public or private) investment of these mutualized funds – can be traced back as far as ancient China and Babylon. This should not be surprising as many of the risks central to the insurance are perpetual facts of human existence: sudden injury, illness, death, and damage to property.
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