GlobalData reports sustained growth for leading insurers
GlobalData reports sustained growth for leading insurers | Insurance Business Canada
Insurance News
GlobalData reports sustained growth for leading insurers
Sustained growth driven by increased awareness and economic recovery
Insurance News
By
Roxanne Libatique
The top publicly listed insurance companies worldwide maintained their growth trajectory in 2023, according to GlobalData.
This growth was driven by heightened awareness of insurance products and economic recovery in various global markets. The average premium earned by the top 20 global insurers rose by 6.2%, while overall revenue increased by 7.8%.
Insurance companies dominating the market in 2023
Out of the top 20 insurers, 16 reported year-over-year growth in premiums for 2023. Leading the charge were Progressive Corporation (Progressive), UnitedHealth Group (UnitedHealth), and Humana.
“Insurance companies have thrived on the confluence of strong economic tailwinds, heightened risk awareness, and record-high savings buoyed by booming markets,” said Murthy Grandhi, company profiles analyst at GlobalData.
Progressive Corporation’s premium growth in 2023
GlobalData revealed that Progressive experienced a 19.1% rise in premium earnings, largely attributed to its significant market share in the US private passenger auto insurance market.
The company’s use of digital platforms and telematics has enhanced customer engagement and operational efficiency, driving market expansion.
UnitedHealth Group’s premium growth in 2023
UnitedHealth saw an increase in premiums within its UnitedHealthcare division, driven by the strong performance of its employer and individual business segment, which serves over 27 million individuals with access to medical services.
Humana’s premium growth in 2023
Humana’s strategic focus on Medicare Advantage plans resulted in a 13.9% increase in premiums, reaching $105.3 billion in FY2023.
Investments in digital health solutions and strategic partnerships have further boosted its growth trajectory, making it a key player in the health insurance sector.
Underperformers in the global insurance market in 2023
MetLife reported an 8.5% decline in earned premiums, primarily due to a significant decrease in its retirement and income solutions business, following a large pension risk transfer transaction in 2022.
The Life Insurance Corporation of India experienced a 1.9% drop in premiums to $59.5 billion, impacted by economic challenges in India and increasing competition from private insurers.
Grandhi noted that the global insurance industry faces a rapidly evolving landscape marked by geopolitical fragmentation, economic volatility, and the accelerating impacts of climate change.
“The increasing frequency and severity of natural disasters highlight the growing risks and challenges associated with maintaining insurability. To remain relevant, insurers must expand their value propositions by offering comprehensive solutions for risk reduction and avoidance. Embracing AI and other emerging technologies will be essential for enhancing efficiency and improving customer satisfaction,” he said.
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