Imagine a global economy so vast that last year alone it collected nearly $7 trillion in premiums, quietly safeguarding everything from our homes and health to our pets and even our cyber lives.
Key Takeaways
- Global insurance premiums written totaled $6.9 trillion in 2023, marking a 6.2% increase from 2022 driven by rising demand in life and health segments
- U.S. property and casualty insurance industry direct premiums written reached $805 billion in 2023, up 8.5% year-over-year
- Life insurance premiums globally amounted to $2.8 trillion in 2022, with Asia accounting for 42% of the market share
- Berkshire Hathaway's insurance segment revenue reached $82 billion in 2023, up 12%
- UnitedHealth Group net earnings $22.4 billion in 2023, ROE 25.8%
- Allstate Corporation net income $4.3 billion in 2023, with combined ratio 92.5%
- U.S. auto insurers' average loss ratio 68.4% in 2023
- Global life insurance loss ratio averaged 85% in 2022
- U.S. homeowners insurance average combined ratio 105.3% in 2023 due to catastrophe losses
- U.S. P&C insurers employed 1.5 million workers in 2023, average salary $105,000
- Global insurance industry workforce totaled 5.2 million in 2023
- U.S. life insurers had 420,000 employees in 2023
- U.S. 95 million individual policies in force in 2023, average 2.8 per household
- 91% of U.S. households have auto insurance coverage in 2023
- Global life insurance policies in force 5.2 billion in 2023
The global insurance industry saw strong growth in 2023 with rising premiums across many markets.
Claims and Loss Ratios
- U.S. auto insurers' average loss ratio 68.4% in 2023
- Global life insurance loss ratio averaged 85% in 2022
- U.S. homeowners insurance average combined ratio 105.3% in 2023 due to catastrophe losses
- P&C insurers paid $90 billion in catastrophe claims in 2023
- U.S. workers' comp loss ratio 84.2% in 2023
- Global health insurance claims ratio 92% in 2023
- U.S. medical malpractice loss ratio 62% in 2023
- Auto physical damage claims frequency up 4.2% YoY in U.S. 2023
- U.S. commercial P&C combined ratio 101.8% in 2023
- Global reinsurance loss ratio 64% in 2023
- U.S. liability insurance loss ratio 72.5% in 2023
- Cyber insurance claims frequency rose 50% YoY to 7.5% in 2023
- U.S. property claims severity increased 8.1% in 2023
- Life insurance claims payout ratio 98.5% in U.S. 2023
- U.S. health insurers' MLR averaged 84.2% in 2023 under ACA
- Commercial auto combined ratio 110.2% in U.S. 2023
- Global catastrophe insured losses $102.5 billion in 2023, 3rd highest on record
- U.S. fire insurance loss ratio 55.3% in 2023
- Pet insurance claims ratio 74% globally in 2023
- U.S. P&C claims payments totaled $678 billion in 2023
- Travel insurance claims payout $5.2 billion in 2023
- U.S. disability insurance claims incidence 1.2% in 2023
- Global life claims $1.9 trillion paid in 2022
- U.S. auto liability claims severity $24,500 average in 2023
- Property insurers' average claims settlement time 45 days in U.S. 2023
- Health claims denial rate 16.5% in U.S. commercial plans 2023
Claims and Loss Ratios Interpretation
From a quick scan, it seems insurers are walking a tightrope, where a life insurer's noble 98.5% payout ratio coexists with the grim reality of a homeowner's insurer bleeding at 105.3%, proving this is a business where one division's moral victory is another division's catastrophic loss.
Customer and Policy Statistics
- U.S. 95 million individual policies in force in 2023, average 2.8 per household
- 91% of U.S. households have auto insurance coverage in 2023
- Global life insurance policies in force 5.2 billion in 2023
- U.S. health insurance covers 92% of population, 297 million insured in 2023
- 75% of Americans have homeowners/renters insurance in 2023
- State Farm insures 19% of U.S. auto market, 58 million policies in 2023
- Average U.S. household has 3.1 insurance policies in 2023
- 45 million employer-sponsored health plans in U.S. 2023
- Global individual life policies 3.8 billion, group 1.4 billion in 2022
- 87% auto insurance penetration in urban U.S., 82% rural in 2023
- U.S. Medicare Advantage enrollees 32 million in 2023
- Pet insurance covers 4.4 million U.S. dogs/cats in 2023, up 20%
- 65% of U.S. adults have life insurance, average face value $196,000 in 2023
- Cyber insurance policies issued to 65% of Fortune 500 in 2023
- Average U.S. auto policy premium $2,543 annually in 2023
- 28 million U.S. small businesses insured in 2023
- Disability insurance covers 45% of U.S. workforce in 2023
- Travel insurance purchased for 40% of international trips from U.S. in 2023
- U.S. renters insurance penetration 41% in 2023
- Group life policies cover 120 million U.S. workers in 2023
- Umbrella policies held by 15% of high-net-worth U.S. individuals in 2023
- Workers' comp covers 99% of U.S. workforce, 155 million in 2023
- Average customer satisfaction score 82/100 for U.S. insurers in 2023 JDP
- 55 million Medicare supplemental policies in U.S. 2023
- Commercial P&C policies 12 million active in U.S. 2023
Customer and Policy Statistics Interpretation
With these statistics confirming that we insure nearly everything from our pets and travels to our cyber selves, it’s clear we’re not just managing risk, but collectively betting that the universe is mildly mischievous and we’d rather not pay out of pocket for its antics.
Employment and Operational Metrics
- U.S. P&C insurers employed 1.5 million workers in 2023, average salary $105,000
- Global insurance industry workforce totaled 5.2 million in 2023
- U.S. life insurers had 420,000 employees in 2023
- Property/casualty sector in U.S. with 1.2 million full-time jobs, 55% in claims/uw
- UK insurance industry employed 325,000 people in 2023
- Agents/brokers represent 30% of U.S. insurance employment at 450,000 in 2023
- Global insurtech firms employ 250,000 by 2023, growing 20% YoY
- U.S. health insurers workforce 900,000 in 2023
- Average tenure of insurance CEOs 7.2 years globally in 2023
- 42% of U.S. insurers using AI for operations, employing 15% more tech staff in 2023
- Indian insurance sector jobs 1.2 million in 2023
- U.S. claims adjusters number 350,000 in 2023, median wage $74,000
- Women hold 60% of insurance jobs globally, but only 25% executive roles in 2023
- Average insurance underwriter salary $78,500 in U.S. 2023
- 28% of insurers plan hiring for cyber risk roles in 2023-2024
- U.S. actuarial employment 28,000 in 2023, growth 23% projected to 2032
- Reinsurance firms employ 120,000 globally in 2023
- Insurtech startups raised $10 billion, creating 50,000 jobs in 2023
- U.S. insurance call centers staff 200,000 agents in 2023
- 65% of insurance processes automated, reducing operational staff needs by 10% in 2023
- Global brokers employment 1 million in 2023
Employment and Operational Metrics Interpretation
Behind all the staggering billions in premiums and flashy insurtech IPOs lies a remarkably stable, human-scale industry—a global workforce of 5.2 million, where over half are women, but the C-suite remains a stubborn boys' club, and where every automated process seems to spawn a new job in cyber risk, proving that in insurance, for every risk mitigated, a new job description is underwritten.
Market Size and Revenue
- Global insurance premiums written totaled $6.9 trillion in 2023, marking a 6.2% increase from 2022 driven by rising demand in life and health segments
- U.S. property and casualty insurance industry direct premiums written reached $805 billion in 2023, up 8.5% year-over-year
- Life insurance premiums globally amounted to $2.8 trillion in 2022, with Asia accounting for 42% of the market share
- China's insurance market premiums hit 4.9 trillion yuan ($690 billion) in 2023, growing 9.1% annually
- European insurance gross written premiums stood at €1.3 trillion in 2022, with non-life insurance comprising 45%
- U.S. health insurance market size was valued at $1.2 trillion in premiums in 2023
- Indian insurance industry collected ₹8.92 lakh crore ($107 billion) in premiums for FY 2023-24, up 12.5%
- Global reinsurance market capacity exceeded $700 billion in 2023 amid hardening rates
- UK insurance premiums grew to £290 billion in 2022, with motor insurance leading at 25% share
- Japan's non-life insurance premiums reached ¥13.2 trillion in fiscal 2023, up 2.8%
- Brazilian insurance market premiums totaled R$194 billion in 2023, growing 7.2%
- Australian general insurance premiums hit AUD 65 billion in 2023
- Global cyber insurance premiums surpassed $14 billion in 2023, doubling since 2020
- U.S. auto insurance premiums written reached $320 billion in 2023
- German insurance market GWP was €220 billion in 2022, with life insurance at 55%
- South Korean insurance premiums totaled KRW 200 trillion in 2023
- Canadian P&C insurance premiums were CAD 72 billion in 2023, up 6%
- Global parametric insurance market valued at $15 billion in 2023, growing 25% YoY
- U.S. homeowners insurance market premiums at $120 billion in 2023
- French insurance premiums reached €268 billion in 2022
- Global pet insurance premiums hit $11 billion in 2023, up 18%
- U.S. workers' comp premiums totaled $62 billion in 2023
- Italian insurance market GWP €155 billion in 2022
- Global usage-based insurance market size $7.5 billion in 2023
- U.S. liability insurance premiums $150 billion in 2023
- Netherlands insurance premiums €95 billion in 2022
- Global travel insurance market $10.8 billion in 2023
- U.S. life/annuity premiums $1.1 trillion in 2023
- Spanish insurance premiums €62 billion in 2022
- Global microinsurance market $100 billion in premiums by 2023
Market Size and Revenue Interpretation
The global insurance industry, currently valued at a colossal $6.9 trillion, has us all collectively hedging our bets against life’s chaos, from health and cyberattacks to pampered pets and reckless drivers, proving that peace of mind is a very expensive commodity.
Profitability and Financials
- Berkshire Hathaway's insurance segment revenue reached $82 billion in 2023, up 12%
- UnitedHealth Group net earnings $22.4 billion in 2023, ROE 25.8%
- Allstate Corporation net income $4.3 billion in 2023, with combined ratio 92.5%
- Progressive Corp. underwriting profit $6.2 billion in 2023, ROE 28.4%
- State Farm policyholder surplus $140 billion as of 2023
- AXA Group net profit €7.1 billion in 2023, EPS €3.68
- MetLife operating EPS $3.45 in 2023, ROE 11.2%
- Travelers Companies net income $2.7 billion in 2023, combined ratio 95.2%
- Prudential Financial adjusted operating income $2.6 billion in 2023
- Chubb Ltd. core operating profit $9.3 billion in 2023, ROIC 12.5%
- Ping An Insurance net profit RMB 99.2 billion ($14 billion) in 2023
- Humana Inc. net income $3.8 billion in 2023, operating margin 4.5%
- Nationwide Mutual Insurance surplus $24 billion in 2023
- Munich Re net result €4.4 billion in 2023, ROE 15.8%
- Anthem (Elevance Health) net earnings $6.7 billion in 2023
- Liberty Mutual operating income $2.5 billion in 2023
- AIG net income $6.6 billion in 2023, adjusted ROE 10.1%
- Cigna operating income $4.3 billion in 2023, EPS $25.08
- USAA net worth $40 billion in 2023
- Allianz SE net profit €9.2 billion in 2023, ROE 16.2%
- Centene Corp. net income $2.7 billion in 2023
- Farmers Insurance Group policyholder surplus $20 billion in 2023
- Swiss Re net income $4.7 billion in 2023
- Molina Healthcare net income $1.2 billion in 2023, ROE 37.5%
- Erie Insurance net income $1.1 billion in 2023
- Mapfre net profit €1.4 billion in 2023
- Legal & General profit £2.1 billion in 2023
- U.S. property/casualty insurers' average ROE was 10.2% in 2023
- Global insurers' average combined ratio improved to 96.5% in 2023
Profitability and Financials Interpretation
Even amidst global turbulence, the world's largest insurers have proven that their primary talent isn't just managing risk, but expertly harvesting profit from it, turning uncertainty into staggering billions with the cool precision of croupiers in a casino that never closes.
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