Non-life insurances - Worldwide

Worldwide

The Non-life insurances market market worldwide is projected to reach a market size (gross written premium) of US$5.42tn in 2024.
On average, individuals are expected to spend US$699.70 per capita in the Non-life insurances market market in 2024.
The gross written premium is predicted to exhibit an annual growth rate of 2.53% (CAGR 2024-2028), resulting in a market volume of US$5.99tn by 2028.
In global comparison, the United States is anticipated to generate the highest gross written premium of US$3,371.0bn in 2024.
In the worldwide non-life insurance market, countries like the United States and China are experiencing a surge in demand due to increasing awareness about the importance of insurance coverage.

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Analyst Opinion

The non-life insurance market, distinct from life insurance, operates with its own set of dynamics and challenges. Presently, several discernible trends are shaping the landscape of non-life insurance, while specific underlying indicators provide insight into its performance and stability.

Trends on the market:

Emerging Cybersecurity Coverage: In the non-life insurance sector, there is a growing emphasis on cybersecurity coverage. Insurers are developing policies to protect businesses and individuals against data breaches, ransomware attacks, and other cyber risks.
Climate and Natural Disaster Insurance: The non-life insurance market is witnessing a surge in interest related to climate and natural disaster insurance. With increasing climate-related events, there's a demand for specialized policies covering floods, wildfires, and extreme weather events.
Parametric Insurance: Parametric insurance is gaining traction in the non-life insurance sector. These policies pay out based on predefined parameters, such as specific weather conditions or seismic activity, offering more transparency and quicker claims settlements.
Evolving Auto Insurance: Non-life auto insurance is undergoing transformation with the advent of telematics and usage-based insurance. These technologies allow insurers to tailor premiums based on an individual's driving behavior, potentially reducing costs for safer drivers.
Liability Insurance for Emerging Risks: Liability insurance is evolving to cover new risks, such as autonomous vehicles and drone operations. Non-life insurers are adapting their products to address these emerging liability concerns.

Underlying Indicators:

Claims Frequency and Severity: Monitoring the frequency and severity of non-life insurance claims is vital for assessing risk and profitability. Sudden changes in these indicators may signal emerging risks or shifts in market dynamics.
Interest Rates and Investment Income: Low-interest-rate environments can impact the investment income of non-life insurers. The yield on investments is a critical factor that affects overall financial stability and the ability to meet claims.
Regulatory Environment: Non-life insurers must closely follow evolving regulatory environments that affect their products and practices, including changes in consumer protection and data privacy laws.
Technological Advances: Technological advancements, such as telematics, AI, and data analytics, directly influence product development and pricing strategies in the non-life insurance market.
Market Competition: The competitive landscape can impact pricing and innovation within the non-life insurance market. Understanding the competitive dynamics is essential for staying relevant and responsive to market demands.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.