Insurance sector analysis by GlobalData spotlights leading 20 insurers: growth trajectories, market explorations, and additional insights
The global insurance industry witnessed a robust growth in 2024, with the top 20 publicly listed insurance companies demonstrating a 6.8% year-on-year growth in premium earnings, according to GlobalData. This growth was evident across various regions, with the Netherlands' general insurance industry expected to grow at a compound annual growth rate (CAGR) of 3.8%, from €64.4 billion ($76.2 billion) in 2021 to €77.6 billion ($94.1 billion) in 2026.
In the United States, Progressive Corporation overtook State Farm to become the largest motor insurer, reporting a 20.7% growth in premium earnings, mainly due to an increase in new personal auto applications. Prudential Financial also experienced a 40% surge in premium earnings, primarily due to growth in its group disability business. However, Dai-ichi Life Holdings experienced a 13% decline in earned premiums in 2024, due to a decline in sales at The Dai-ichi Frontier Life Insurance Co., Ltd.
Japanese life insurance industry is set to grow at a CAGR of 4.7% from JPY39.7 trillion ($275.8 billion) in 2024 to JPY50.0 trillion ($371.2 billion) in 2029, in terms of direct written premiums (DWP).
The growth of the global insurance industry in 2024 was driven by key factors such as digital transformation through AI and advanced technologies, demographic changes, economic recovery, rising risk awareness, and regulatory initiatives. AI adoption is expanding across the insurance value chain, positively impacting underwriting, risk profiling, claims management, customer service, and product development. Demographic shifts and economic pressures, such as aging populations and recovering economies, boost demand for insurance products. Increasing risk awareness fuels demand for a broad range of products including health, property, life, and cyber insurance worldwide. Regulatory efforts to promote financial literacy and increase insurance penetration help drive market expansion. Emerging economies experiencing rapid urbanization and rising disposable incomes contribute significantly to growth, particularly in Asia-Pacific and Latin America.
However, the industry also faced challenges in 2024. Inflationary pressures, particularly impacting the motor and property segments, led to continued premium rate increases. Insurers also faced heightened scrutiny regarding their cybersecurity preparedness due to recent attacks revealing systemic vulnerabilities. Regulatory tightening across various jurisdictions raised compliance costs but also promoted improved transparency and bolstered consumer trust.
In conclusion, the global insurance industry in 2024 demonstrated resilience and growth, driven by technological advancements, demographic shifts, economic recovery, and regulatory initiatives. Despite the challenges posed by inflation, cybersecurity concerns, and regulatory changes, the industry remains poised for continued growth, particularly in emerging markets.
Investors seeking opportunities in the insurance sector might find reinsurance companies that prioritize compliance with growing cybersecurity regulations an attractive investment. Politically stable countries with robust personal-finance management, such as the Netherlands, could create viable business ventures for insurance companies looking to expand. For those interested in investing in a growing sector, the industry's emphasis on digital transformation through AI and advanced technologies offers exciting potential.
