Global insurance spending is expected to maintain its growth trajectory, reaching nearly $10 trillion by 2028, according to data provided by Stocklytics.com.

The global insurance market, which includes both life and non-life insurance, has seen a 25% increase over the past four years, with total premiums rising to over $9 trillion this year. While the growth rate has slowed since its peak in 2021, the market is expected to post record spending in the coming years.

There are several factors driving the market growth, including economic expansion, the rise of the middle class, technological innovations such as insurtech, and an evolving risk environment. According to Statista, the total written premiums in the global insurance market reached $7.24 trillion in 2017, and rose to nearly $8 trillion by the end of 2020.

Notably, the COVID-19 pandemic has significantly accelerated the market’s growth, underscoring the importance of health and life insurance and prompting businesses to seek coverage against interruption and other related risks. As a result, total insurance spending rose 8.6% in 2021, reaching $8.64 trillion—the highest annual increase to date.

Despite slowing growth over the past three years, with annual increases ranging between 2.5% and 3.5%, total insurance spending is set to rise to $9.09 trillion in 2024. This upward trend is expected to continue, with global insurance spending expected to rise by $200 billion annually, reaching $9.91 trillion by 2028.

On the other hand, the US is expected to maintain its position as the leading insurance market, generating nearly half of the world’s total insurance premiums. When analyzing the market segments, non-life insurance is expected to lead the overall market growth, outpacing both the life insurance segment and the overall market.

Statista expects total premiums in the non-life insurance sector to rise 10.5%, approaching $6 trillion over the next four years. The life insurance sector is expected to grow 6.8%, reaching a value of $3.92 trillion. The overall market is expected to grow 10% over the next four years.

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