Global Life and Non-Life Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Life and Non-Life Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Life and Non-Life Insurance market are estimated to register a CAGR of approximately 3% during the forecast period.

Key Highlights

• Global insurance premiums passed the USD 5 trillion mark for the first time in 2018, equivalent to more than 6% of world gross domestic product, growth came generally from property/casualty insurance expansion in China and other emerging Asian markets. In terms of global insurance premiums, the Asia-Pacific region holds 32.4%, North America 30.8%, and Europe 31.6% in 2018. North America and Europe had the highest insurance penetration rates in 2017, measured by premiums as a percentage of GDP, with 7.1% and 6.5% of GDP, respectively. Asia, which includes the Middle East and Oceania, tied in third place with 5.6%. While Taiwan (21.3%), Hong Kong (17.9%), South Korea (11.6%), Japan (8.6%), and Singapore (8.2%) recorded rates above those seen in North America, about half of the countries in Asia have rates of less than 3% of GDP, with large populous economies, such as Pakistan and Bangladesh, registering rates under 1%. Latin America and the Caribbean, as well as Africa, hold the most potential for catch-up growth, with penetration rates of 3.06% and 2.96%, respectively.
• InsurTech sector has seen much technological and investment development over the past few years. Traditional insurance business lines, such as health, auto, and commercial, are being revolutionized by new digital-centric startups. New technologies, such as AI and IoT, have been re-architecting insurance data, the foundation of the insurance industry.

Key Market TrendsGlobal M&A Activity in Insurance Industry:

There were 382 completed mergers and acquisitions (M&A) worldwide in the insurance sector in 2018, up by 9% (from 350) from the previous year. With 196 deals in the second half of the year, following 186 in the first six months, there have now been three consecutive six-month periods of M&A growth for the first time since 2009. While the Americas remained the most active region for insurance sector M&A with 189 deals in 2018, there was a minor drop off in deal activity in the Americas in the second half of the year with 92 transactions, down from 97 in the first six months. In 2018, there were 18 mega-deals valued in excess of USD 1 billion, including the year’s largest, AXA’s USD 15.1 billion acquisition of XL Catlin. APAC’s M&A activity in the insurance sector were up by 40% in 2018 compared to the previous year, the APAC region is an emerging market.

Significant growth in insurtech adoption:

Insurtech adoption has seen significant growth from 8% in 2015 to almost 50% in 2019. The use of technology in insurance can make products more affordable, business more profitable, and provide access to new risk pools. The insurance companies have been integrating digital technologies into their traditional processes and everyday workflows, in order to reduce manual efforts, time, and costs. Insurance saw an increase in investment increase at 36.5% CAGR between 2014 and 2017. The insurance sector participants sometimes use the term more broadly to encompass the application of digital technology to all stages of the insurance supply chain. As the insurance sectors of developing and emerging markets become more sophisticated, it can be expected that digital solutions may filter down through the insurance supply chain, driving operational efficiency, and ultimately profitability, as is already being seen in more advanced markets.

Competitive Landscape

The report covers the major players operating in the global life and non-life insurance market. The market is fragmented; technology adoption in insurance sector, government initiatives toward changes in insurance regulations, like MTPL (motor third party liability), and many other factors can drive the market during the forecast period.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Massachusetts Mutual Life Insurance Company
Unitedhealth Group Incorporated
Berkshire Hathaway Inc.
Ping An Insurance (Group) Company of China Ltd
Cigna Corporation
CHINA LIFE INSURANCE COMPANY LIMITED
Anthem Inc.
AETNA HEALTH INSURANCE (THAILAND) PUBLIC COMPANY LIMITED
The People's Insurance Company (Group) of China Limited
NIPPON LIFE INSURANCE COMPANY

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