Insurance and risk management make up an immense global industry. Worldwide insurance premiums totaled about $4.75 trillion in 2014, up from $4.64 trillion in 2013. This was equal to about 6.5% of global GDP. Global life insurance premiums were $2.65 trillion during 2014, while all other types of insurance totaled $2.10 trillion.
In emerging nations, where the fastest insurance market growth is to be found, total premiums in 2013 were about $788 billion, up by 7.4% over the previous year. Life insurance premiums were up 6.4% to $408 billion in 2013. Meanwhile, non-life premiums in emerging markets made a solid gain of 8.3% to $380 billion (the Chinese market alone rose 16% to $126 billion).
Premiums on a per capita basis remain very low in much of the world, pointing to excellent long-term opportunity insurance products of all types, including annuities. It would be hard to overstate the importance of emerging nations, especially China, India, Brazil and Indonesia, to the future growth of the insurance industry. Much of the world is still clearly a fertile field for expansion of companies that are willing and able to invest time and money in emerging markets. Total premiums in China were $284 billion in 2013, up from $246 billion in 2012. India’s premiums in 2013 stagnated compared to 2012, reaching about $66 billion.
As the market in China expands, so do markets in other rapidly developing countries such as India, and areas such as Eastern Europe. Insurers are hoping to cash in on the growing markets with a variety of products, including “microinsurance” policies designed to appeal to people unfamiliar with the need for insurance coverage.
The beauty of the effort for insurers is that as these markets grow and mature, so do premiums, which are rising at a far greater rate than those in established markets such as the U.S. and Japan.
For more data and statistics on the Insurance industry, see http://www.plunkettresearch.com/insurance-risk-management-market-research/industry-and-business-data
Plunkett’s Insurance Industry Almanac 2015 Edition
Print ISBN: 978-1-62831-345-1
Published Date: November 2014