The global insurance industry, encompassing both life and non-life sectors, is on track to reach unprecedented spending levels, with projections suggesting total insurance premiums could approach $10 trillion by 2028. Over the past four years, the market has experienced a substantial 25% increase, pushing the total value of insurance premiums to over $9 trillion this year. Despite a slowdown in growth since its peak in 2021, the sector is anticipated to continue its upward trajectory.
Driving this growth are several key factors: robust economic expansion, the burgeoning middle class, advancements in technology including insurtech, and a dynamic risk landscape. Data from Statista highlights a significant rise in global insurance premiums, from $7.24 trillion in 2017 to nearly $8 trillion by the end of 2020.
The COVID-19 pandemic notably accelerated market expansion, emphasizing the critical role of health and life insurance while compelling businesses to secure coverage for interruptions and related risks. This shift led to an 8.6% surge in total insurance spending in 2021, reaching $8.64 trillion—the highest annual increase recorded to date.
In recent years, the growth rate has moderated, with annual increases fluctuating between 2.5% and 3.5%. Nevertheless, total insurance spending climbed to $9.09 trillion in 2024. Looking ahead, the global insurance market is projected to grow by an average of $200 billion annually, potentially reaching $9.91 trillion by 2028.
The United States remains the dominant force in the global insurance market, accounting for nearly half of the world’s premiums. Within the market, non-life insurance is set to drive overall growth, outpacing the life insurance sector.
Statista forecasts a 10.5% increase in premiums for the non-life segment, approaching $6 trillion over the next four years. Meanwhile, the life insurance segment is expected to grow by 6.8%, reaching a value of $3.92 trillion. Overall, the market is anticipated to grow by 10% during this period.
