Insurance Industry Statistics By Types, Capitalization, Cyber Insurance, AI and Facts

Introduction

Insurance Industry Statistics: The insurance industry plays a key role in protecting people and businesses from unexpected financial losses. It provides a safety net by offering coverage for risks like accidents, health issues, natural disasters, and more. This industry not only helps individuals recover from unexpected events but also supports economic stability.

All elaborated statistics in the insurance sector give valuable insights into how it operates and grows. They reveal trends in customer preferences, claim patterns, and the performance of various types of insurance, such as health, life, and property coverage. By understanding these numbers, companies can improve their services and make smarter decisions. For customers, statistics help them choose the right policies for their needs, ensuring better protection and peace of mind.

Editor’s Choice

• Insurance Industry Statistics stated that natural disasters such as hurricanes and wildfires increased economic losses totaling USD 320 billion.
• Insurance covered USD 140 billion of the total economic losses, making 2024 the costliest year for insurers since 2017.
• The global insurance industry grew by 7.5% in 2023, the fastest growth since 2006. Total premiums reached €6.2 trillion.
• The UK insurance market is expected to reach approximately £290 billion in revenue by the end of 2024.
• Insurance prices in Australia have surged by 30.5% over the past two years, significantly outpacing the overall inflation rate of 12%.
• Recent wildfires in Los Angeles are projected to cause insured losses exceeding USD 20 billion.
• Insurance Industry Statistics further depict that property catastrophe reinsurance rates dropped by 5% during June renewals.
• Australia’s major financial companies, including insurers, have seen a 46% profit increase since March 2021.
• Climate change continues to drive up insured losses, with average annual natural catastrophe losses for the insurance industry reaching new highs.
• Despite rising premiums, only 3.9% of drivers switched insurers in search of better rates.

You May Also Like To Read

• Fast Food Industry Statistics
• Supply Chain Industry Statistics
• Pet Industry Statistics
• Fashion Industry Statistics
• Semiconductor Industry Statistics
• U.S. Pharmaceutical Industry Statistics
• Pet Grooming Industry Statistics
• Media And Entertainment Industry Statistics
• Fitness Industry Statistics
• Electric Vehicle Statistics
• Biotechnology Industry Statistics
• Ridesharing Industry Statistics
• Bicycle Industry Statistics
• Golf Industry Statistics
• Vacation Rental Statistics
• Film Industry Statistics
• Home Improvement Industry Statistics
• Hotel Industry Statistics

General Insurance Industry Statistics

• The global insurance market in 2024 is worth about USD 7.79 trillion and is expected to grow to USD 10.29 trillion by 2033, with an annual growth rate of 7.2%.
• In the first quarter of 2024, the U.S. non-life (P&C) insurance sector recorded a USD 9.3 billion underwriting profit, a big improvement from the USD 8.5 billion loss in the same period last year.
• Net premiums in the U.S. non-life insurance sector grew by 7.4% in the first quarter of 2024.
• Incurred losses and loss-adjustment expenses dropped by 2.2%, contributing to the industry’s recovery.
• The combined ratio improved to 94.2%, helped by personal lines rate hikes that outpaced claims costs.
• PwC’s analysis shows that the gap could grow to USD 1.86 trillion by 2025, with nearly half of the uninsured risk coming from the Asia-Pacific region.
• By 2033, it is expected to account for 15% of global gross written premiums (GWP), or about USD 1.1 trillion, compared to the current share of just 3 to 5%.
• Insurance Industry Statistics in the past year state that AI use in insurance has increased by 25%, and it is expected to create USD 1.3 trillion in value for the industry by 2035.
• A June 2024 survey by Deloitte found that 76% of U.S. insurance companies are already using generative AI in at least one area of their business.
• About 84% of insurance executives believe that AI will transform the industry within the next three years.
• By Q3 2024, global insured losses from natural disasters exceeded USD 100 billion for the first time in six years.
• Hurricane Milton struck the southeastern U.S. in October, causing over USD 15 billion in damages.

Insurance Industry Statistics by Types

The global insurance market has reached USD 7,793.45 billion in 2024, with major contributions from different sectors.

• Life Insurance: Estimated at USD 4,048.59 billion, making up about 52% of the total market.
• Property and Casualty Insurance: Valued at approximately USD 3,744.86 billion, contributing around 48%.
• Health and Medical Insurance: Included within the life insurance category, adding to the overall size.
• Non-Life Insurance: Predicted to hit USD 4,600 billion, showing significant industry presence.
• Cyber Insurance: Will exceed USD 20.4 billion by 2025, driven by digital risk needs.
• Auto Insurance: Projected to reach a 7.1% annual rate, reaching USD 1,616.2 billion by 2032.

Largest Insurance Companies Statistics by Market Capitalization

• As of November 2024, UnitedHealth was the world’s largest insurer, with a market value of USD 557.53 billion, followed by Progressive (USD 155.75 billion) in the United States of America.

During the same period, other companies market are stated in the table below:

Life and Non-Life Insurance Direct Premiums Statistics

By Country, 2023

Open Insurance User Statistics

(Reference: statista.com)

• In 2021, only 15.01 million people used open insurance worldwide.
• As per Insurance Industry Statistics 2024, this number is expected to grow over five times to 85.65 million.
• It is predicted that more than 812 million users will adopt open insurance globally by the end of 2032.

ESG Scores of the World’s Largest Insurance Companies Statistics by Providers

(Reference: statista.com)

• Insurance Industry Statistics show that Berkshire Hathaway, the world’s largest insurer by market value, received different ESG scores from rating agencies.
• S&P rated it 15 100, indicating high ESG risk.
• Sustainalytics rated it 47.6 100, showing below-average ESG risk. MSCI’s score was in the middle, at 35.7 100.

Direct Insurance Share Premium Statistics by Segment

(Reference: statista.com)

• Based on Insurance Industry Statistics in 2023, property and casualty (P&C) insurance made up 55.6% of global premiums, while life and health (L&H) insurance accounted for 44.4%.
• For the first time in at least ten years, the Property and Casualty (P&C) segment was larger than the Life and Health (L&H) segment in 2018.
• From 2017 to 2023, P&C made up around 55% of global direct insurance premiums.

Insurance Premiums Share Statistics by Region

(Reference: statista.com)

• A Statista report analysis elaborated that in 2023, the Americas led the global insurance market, holding 44.4% of worldwide insurance premiums from North, South, and Central America.
• Furthermore, the other regions’ share of insurance premiums was Europe (19.8%), Asia (20.1%), and the rest (15.7%).

Leading Insurance Companies Statistics by Total Assets

(Reference: statista.com)

• According to insurance industry statistics, as of May 2023, Ping An, a Chinese insurer, was the world’s largest insurer, with total assets of about USD 1,503.34 billion.
• Furthermore, other insurance company’s total assets were Allianz SE (USD 1,188.98 billion), AXA SA (USD 878.17 billion), China Life Insurance Company Limited (USD 767.4 billion), Nippon Life Insurance Company (USD 742.64 billion), Prudential Financial Inc (USD 695.6 billion), Manulife Financial Corporation (USD 688.68 billion), Generali Group (USD 658.56 billion), Aviva Plc (USD 651.51 billion) and Metlife (USD 650.1 billion).

U.S. Insurance Companies Total Assets Statistics

(Reference: statista.com)

• According to Insurance Industry Statistics, Berkshire Hathaway was the largest insurance company in the United States in 2024, with total assets of almost USD 811 billion.
• Prudential Financial and Metlife secured second and third place, resulting in USD 721 billion and USD 687 billion, respectively.
• In contrast, other companies’ assets are AIG (USD 539 billion), New York Life Insurance Company (USD 408 billion), Lincon National Corporation (USD 372 billion), Northwestern Mutual (USD 359 billion), Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (USD 346 billion), Massachusetts Mutual Life Insurance Company (USD 312 billion), Nationwide Mutual Insurance Company (USD 298.6 billion), and Equitable Holdings, Inc. (USD 276 billion).

Share Change in Commercial Insurance Pricing Statistics

• Insurance Industry Statistics also show that in Q1 2023, global commercial insurance prices rose by 4%, continuing a 22-quarter streak of increases.
• By Q4 2023, the pace slowed, with prices rising 2% compared to the previous year.
• In Q1 2024, prices still grew, but only by 1%, showing a further slowdown.
• A major change came in Q3 2024 when rates dropped by 1%, marking the first quarterly decline in seven years.
• This downward shift persisted into Q4 2024, with premiums falling by 0.9%, resulting in the first annual reduction since 2017.

Cyber Insurance Market Size Statistics

(Reference: statista.com)

• A Statista insight estimated that the global cyber insurance market will grow to USD 20 billion by 2025 and USD 29 billion by 2027.
• As per insurance industry statistics, the previous year’s cyber insurance market size was in 2019 (USD 5.9 billion), 2021 (USD 9.4 billion), and 2023 (USD 14 billion).

Insurance Industry Employment Statistics

• In recent years, approximately 2.98 million people were employed in the U.S. insurance industry.
• In 2023, the U.S. insurance industry employed 912,300 people in life and health insurance and 680,500 in property and casualty insurance.
• Insurance agencies and brokers had 963,000 employees, while reinsurance companies employed 30,900 people.
• Other insurance-related activities accounted for 388,600 jobs, bringing the total industry employment to 2,975,300.

Reasons People Not Having Life Insurance

(Reference: zippia.com)

• Affordability and lack of perceived need are the most common reasons for not purchasing life insurance, and around 23% of Americans don’t have it.
• Insurance Industry Statistics depict that the main reasons people don’t have insurance include not being able to afford it (38%) and feeling the cost isn’t justified (29%).
• Other reasons are not having a family to support (28%) and believing they are too young to need it (25%).

Insurance AI market size Statistics

(Reference: statista.com)

• Insurance Industry Statistics in 2024 further elaborates that the global AI in the insurance market was valued at USD 8.13 billion and is expected to grow to USD 10.81 billion by 2025.
• By 2032, it is projected to reach around USD 79.86 billion, with an annual growth rate of 33.06% CAGR from 2023 to 2032.

Sustainable Initiatives of Insurance Industry Statistics

• Adoption of Low-Carbon Transition Goals: Nearly all global insurers have incorporated at least one low-carbon transition objective into their investment strategies, a significant increase from just 2% two years prior.
• Environmental, Social, and Governance (ESG) Initiatives in the UK: In 2023, 67% of UK insurers adopted ESG initiatives and actively developed sustainable insurance products and policies.
• Investment in Green and Social Projects: Zurich Insurance Group has committed to investing USD 4.6 billion in green and social projects as part of its sustainability program.
• Support for Renewable Energy Projects: Insurers such as Beazley, Allianz, Hiscox, and Zurich are expanding coverage in the renewable energy sector. In 2023, premium income from renewable energy insurance rose 43% for UK commercial insurers outside Lloyd’s of London.
• Affordable Insurance for Climate-Vulnerable Regions: Lloyd’s of London has launched initiatives to provide affordable insurance to small Pacific island nations facing increased climate risks, enhancing resilience against natural disasters.

Conclusion

The insurance industry plays a crucial role in protecting individuals, businesses, and societies from sudden risk factors. They provide financial security, promote economic stability, and rebuild lives after losses. As technology evolves, so do customer needs. Insurers must stay adaptable and innovative based on the current situation.

Building trust through transparency, fair practices, and customer-focused solutions is essential. This industry’s future depends on embracing digital advancements, improving accessibility, and delivering value-driven services. Effective insurance ensures a safer, more resilient future for everyone.