Insurance refers to financial protection services against adverse events, provided by a system of insurance and reinsurance companies.
The insurance market is the sum of economic relationships shaped by the supply and demand for insurance services, functioning as an act of buying and selling. Participants in the insurance market include insurers (insurance companies) that sell insurance and policyholders (individuals and legal entities) that require insurance protection.
The objective foundation for the formation of the insurance market includes the need for insurance protection to ensure the continuity of economic activities by providing compensation and financial assistance to victims of unforeseen emergencies. It also involves the presence of a sufficient number of independent insurance companies capable of meeting society’s diverse needs for insurance coverage.
Industries most dependent on insurance include:
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Automotive and transportation engineering
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Transport, including air travel, and logistics
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Construction and real estate
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Healthcare
Trends in the insurance industry:
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Blockchain solutions are being implemented, such as the "Multiplatform" system, to create blockchain-supported ecosystems.
IoT and RPA/AI technologies are enabling the collection of data for personalized risk assessment of individual policyholders (e.g., auto insurance).
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The insurance market continues to grow. The Asia-Pacific region (APAC) is expanding fast, while EMEA (Europe, the Middle East, and Africa) a little slower. The fastest-growing insurance markets are Vietnam, Laos, Philippines, Sri Lanka, and India.
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By 2029, the total global insurance premiums are expected to reach $7.15 trillion, with life insurance making up 65% and P&C insurance accounting for 35%. The highest absolute and relative premium growth is anticipated in Asia (excluding Japan), at an annual rate of approximately 9, driven largely by China’s rapid expansion of up to 11% per year.
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The U.S. may retain its leading position in total insurance premiums until 2029, but with a declining gap, as U.S. premium growth is expected to be only 2.6% per year. Meanwhile, China is projected to account for over 30% of all premiums, compared to just 14% for the U.S.
