Global insurance spending set to approach US$10 trillion by 2028

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

Insurance News

Global insurance spending set to approach US$10 trillion by 2028

New record expected amid continued growth

Insurance News

By
Terry Gangcuangco

Global insurance spending is projected to sustain its growth trajectory, reaching nearly US$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 US$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 US$7.24 trillion in 2017, rising to nearly US$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 US$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 US$9.09 trillion in 2024. This upward trend is poised to persist, with global insurance spending forecast to rise by an average of US$200 billion annually, hitting US$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 US$6 trillion over the next four years. The life insurance segment is projected to grow by 6.8%, reaching a value of US$3.92 trillion. The whole market’s growth is estimated to be at 10% for the upcoming four-year period.

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