Global insurance spending set to approach $10 trillion by 2028

Global insurance spending set to approach $10 trillion by 2028 | Insurance Business America

Insurance News

Global insurance spending set to approach $10 trillion by 2028

New record expected to be reached amid sustained growth

Insurance News

By
Terry Gangcuangco

Global insurance spending is projected to sustain its growth trajectory, reaching nearly $10 trillion by 2028, according to data presented by Stocklytics.com.

It was noted that the global insurance market, spanning the life and non-life sectors, has experienced a 25% surge over the past four years, with the total insurance premiums value increasing to over $9 trillion this year. While the growth rate has decelerated since the peak in 2021, the market is still expected to achieve record-high spending in the coming years.

Several factors are driving the market’s growth, including economic expansion, the rise of the middle class, technological innovations like insurtech, and an evolving risk environment. According to Statista, the gross written premium in the global insurance market stood at $7.24 trillion in 2017, rising to nearly $8 trillion by the end of 2020.

Notably, the COVID-19 pandemic significantly accelerated market growth, underscoring the importance of health and life insurance while also pushing businesses to seek coverage against interruption and other related risks. Consequently, total insurance spending surged by 8.6% in 2021, reaching $8.64 trillion – marking the highest annual increase to date.

Despite slower growth over the past three years, with annual increases ranging between 2.5% and 3.5%, total insurance spending climbed to $9.09 trillion in 2024. This upward trend is poised to persist, with global insurance spending forecast to rise by an average of $200 billion annually, hitting $9.91 trillion by 2028.

The US, meanwhile, is set to maintain its position as the leading insurance market, generating almost half of the world’s total premiums. When analyzing market segments, non-life insurance is expected to drive overall market growth, outpacing both the life insurance sector and the market as a whole.

Statista predicts that total premiums in the non-life segment will jump by 10.5%, nearing $6 trillion over the next four years. The life insurance segment is projected to grow by 6.8%, reaching a value of $3.92 trillion. The whole market’s growth is estimated to be at 10% for the upcoming four-year period.

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