While the global insurance industry quietly amassed a staggering $7 trillion in premiums last year, its story is not one of uniform growth but a dramatic split between booming emerging markets and stagnant advanced economies.
Key Takeaways
- Global insurance direct premiums written reached $7.0 trillion in 2022
- The global insurance market is projected to grow at a CAGR of 5.4% from 2023 to 2030
- Insurance penetration rate globally was 6.8% of GDP in 2022
- Global life insurance premiums $3.5 trillion in 2022
- Non-life premiums worldwide $3.4 trillion in 2022
- Property/casualty premiums grew 4.2% nominally in 2022
- Global P&C combined ratio averaged 98.5% in 2022
- Life insurance claims ratio 85% globally in 2022
- Global insured losses from natural catastrophes $140 billion in 2022
- Global return on equity for insurers 10.2% in 2022
- Net income for global insurers $250 billion in 2022
- Investment yield for insurers averaged 3.1% in 2022
- Global individual life policies in force 3.2 billion in 2022
- Number of P&C policies worldwide estimated 5 billion in 2023
- 4.5 billion people globally insured in some form 2022
The global insurance market is large, growing steadily, and increasingly driven by emerging markets and technology.
Claims and Underwriting
- Global P&C combined ratio averaged 98.5% in 2022
- Life insurance claims ratio 85% globally in 2022
- Global insured losses from natural catastrophes $140 billion in 2022
- US P&C incurred losses $800 billion in 2022
- COVID-19 related life insurance claims exceeded $10 billion globally by 2022
- Motor insurance claims frequency up 5% post-COVID in 2022
- Global cyber claims reached $7 billion in 2022
- Property insurance claims from wildfires $20 billion in 2022
- Flood claims global insured losses $40 billion in 2022
- Workers' compensation claims $60 billion in US 2022
- Health insurance claims payout ratio 82% in OECD countries 2022
- Reinsurers paid $110 billion catastrophe claims in 2022
- Average claim size for cyber insurance up 50% to $5M in 2022
- P&C loss ratio 65% globally in 2022
- Life insurance death claims up 20% in 2021-2022 due to pandemic
- Hurricane Ian claims $50-65 billion in 2022
- European flood claims €40 billion from 2021 event impacting 2022
- Auto physical damage claims severity up 8% in 2022
- Liability claims growing 10% annually due to social inflation
- Global marine insurance claims $5 billion in 2022
- Disability claims in group life up 15% in 2022
- Aviation insurance claims $3 billion post-Ukraine war 2022
- Parametric insurance claims paid $2 billion in 2022
- Crop insurance claims $15 billion in US 2022
- Directors & Officers claims up 20% frequency in 2022
Claims and Underwriting Interpretation
Mother Nature, pandemics, and our increasingly litigious and digitally clumsy society are collectively running an expensive and chaotic side-hustle that the global insurance industry is just barely keeping solvent.
Market Size and Growth
- Global insurance direct premiums written reached $7.0 trillion in 2022
- The global insurance market is projected to grow at a CAGR of 5.4% from 2023 to 2030
- Insurance penetration rate globally was 6.8% of GDP in 2022
- Global insurance density stood at USD 866 per capita in 2022
- The Asia-Pacific region accounted for 37% of global insurance premiums in 2022
- North America held 29% share of global insurance market in 2022
- Europe represented 27% of global insurance premiums in 2022
- Emerging markets grew insurance premiums by 7.2% in real terms in 2022
- Advanced markets saw -2.1% real premium growth in 2022
- Global insurance market size was valued at $6.85 trillion in 2021
- Projected global insurance market to reach $9.8 trillion by 2027
- Life insurance dominated with 52% of global premiums in 2022
- Non-life insurance accounted for 48% of global market in 2022
- Global reinsurance premiums grew 3.8% in 2022 to $620 billion
- Insurtech market within insurance projected to grow to $151 billion by 2030
- Global property & casualty insurance market size $2.9 trillion in 2022
- Health insurance global market $1.3 trillion in 2022
- Cyber insurance premiums reached $14 billion globally in 2023
- Global insurance market CAGR 4.5% from 2022-2028
- Latin America insurance premiums $220 billion in 2022
- Middle East & Africa insurance market $70 billion in 2022
- Global insurance assets under management $41 trillion in 2022
- Insurance industry's contribution to global GDP 3.5% in 2022
- Number of insurers worldwide over 50,000 in 2023
- Global insurance employment 5.2 million direct jobs in 2022
- Premium growth in China 4.1% in 2022 to $700 billion
- US insurance market $1.3 trillion premiums in 2022
- Japan insurance premiums $400 billion in 2022
- India insurance market $100 billion premiums in FY2022
- Global insurance M&A deals 450 in 2022 valued at $70 billion
Market Size and Growth Interpretation
While our world collectively held its breath through recent crises, the insurance industry quietly grew to a staggering $7 trillion in premiums, proving that humanity's instinct to hedge against disaster is not just resilient but booming, with emerging markets now leading the charge while the established giants take a temporary pause.
Policyholders and Distribution
- Global individual life policies in force 3.2 billion in 2022
- Number of P&C policies worldwide estimated 5 billion in 2023
- 4.5 billion people globally insured in some form 2022
- Motor policies 2.1 billion globally in 2022
- Health insurance coverage 50% of world population 2022
- Bancassurance distribution channel 30% of life premiums 2022
- Independent agents/brokers 25% of P&C distribution 2022
- Digital channels 15% of global premiums in 2022
- US health insurance enrollees 300 million in 2022
- China individual life policies 1 billion in force 2022
- EU active motor policies 250 million in 2022
- Embedded insurance policies grew 30% to 500 million in 2022
- Group health plans covering 1.2 billion globally 2022
- Pet insurance policies 30 million worldwide 2022
- Direct-to-consumer life policies up 20% in 2022
- Microinsurance policies 1.5 billion low-income 2022
- Homeowners policies 1 billion globally estimated 2022
- Travel insurance policies 800 million issued 2022
- Corporate D&O policies 100,000 globally 2022
- Parametric policies doubled to 50 million in 2022
- Insurtech customer base 200 million users 2022
- Agents in India 5 million for life insurance 2022
- Broker market share 12% of premiums in EU 2022
- Mobile app users for insurance 500 million globally 2022
Policyholders and Distribution Interpretation
Insurance wraps the planet in a safety net of paper and promises, with 4.5 billion lives touched and everything from our pets to our phones whispering, "What if?"
Premiums and Revenue
- Global life insurance premiums $3.5 trillion in 2022
- Non-life premiums worldwide $3.4 trillion in 2022
- Property/casualty premiums grew 4.2% nominally in 2022
- Life/health premiums in advanced markets down 1.5% real in 2022
- Emerging markets life premiums up 6.8% in 2022
- Motor insurance premiums global $800 billion in 2022
- Health insurance premiums $1.5 trillion globally in 2022
- Personal accident insurance premiums $50 billion worldwide 2022
- US non-life premiums $700 billion in 2022
- China life insurance premiums $500 billion in 2022
- European life premiums €800 billion in 2022
- Global reinsurance assumed premiums $600 billion in 2022
- Cyber insurance gross premiums $13.8 billion in 2022
- Travel insurance premiums $60 billion pre-COVID, recovering to $45B in 2022
- Crop insurance global premiums $40 billion in 2022
- Liability insurance premiums $300 billion globally 2022
- Group life premiums 25% of total life market in 2022
- Direct written premiums in P&C grew 5% in emerging Asia 2022
- Premiums per capita in US $3,500 for insurance in 2022
- India non-life premiums grew 13% to $15 billion in FY2022
- Brazil insurance premiums R$300 billion (~$60B) in 2022
- Australia general insurance premiums AUD$60 billion in 2022
- South Africa life premiums ZAR200 billion in 2022
- Global premiums inflation-adjusted growth 1.2% in 2023 forecast
- Property catastrophe reinsurance rates up 5-10% in 2023 renewals
- Casualty reinsurance rates increased 20-30% in 2023
Premiums and Revenue Interpretation
The global insurance industry appears to be in a resilient, if not schizophrenic, state, with life markets in the West quietly fretting while emerging economies and niche sectors like cyber enthusiastically sprint ahead, all under the watchful, and now significantly more expensive, eye of the reinsurance market.
Profitability and Investments
- Global return on equity for insurers 10.2% in 2022
- Net income for global insurers $250 billion in 2022
- Investment yield for insurers averaged 3.1% in 2022
- P&C underwriting profit margin 2.5% globally 2022
- Life insurance ROE 12.5% in advanced markets 2022
- Insurers' global investment portfolio $41 trillion 2022
- Fixed income assets 70% of insurer portfolios globally 2022
- Equity investments 10% of global insurer assets 2022
- Alternative investments grew to 5% of portfolios in 2022
- US P&C net income $45 billion in 2022
- Reinsurers' combined ratio 92% in 2022
- Operating profit margin for insurers 8% global average 2022
- Solvency II capital ratio average 200% for EU insurers 2022
- Global insurer dividend payouts $100 billion in 2022
- Investment income covered 80% of claims in P&C 2022
- Cost-income ratio for insurers 92% in 2022
- Asia insurers ROE 9.8% in 2022
- Expense ratio P&C 28% globally 2022
- Unrealized gains on bonds $500 billion for insurers 2022
- Private equity allocations by insurers up 20% to 2.5% in 2022
- Infrastructure investments $200 billion by insurers globally 2022
- Hedging derivatives usage 15% of portfolios 2022
- Credit risk provisions $20 billion for insurers 2022
- Profit before tax for top 50 insurers $300 billion 2022
Profitability and Investments Interpretation
Despite generating a quarter-trillion in net income and managing a staggering $41 trillion portfolio, the global insurance industry clings to its conservative, bond-heavy roots, squeezing out a steady but unspectacular 10.2% return by brilliantly using investment income—which covered 80% of P&C claims—to subsidize its own costly 92% expense ratio.
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