Life & Non-Life Insurance Market Size - By Insurance Type (Life [Individual, Group], Non-Life [Home, Motor, Travel, Business]), By Distribution Channel (Direct, Agency, Bank), Forecast 2023 - 2032

Life & Non-Life Insurance Market Size - By Insurance Type (Life [Individual, Group], Non-Life [Home, Motor, Travel, Business]), By Distribution Channel (Direct, Agency, Bank), Forecast 2023 - 2032

Life & Non-Life Insurance Market Size

Life & Non-Life Insurance Market was valued at USD 8 trillion in 2022 and is estimated to register a CAGR of over 4.5% between 2023 and 2032. Driven by the increasing penetration of life insurance. As more individuals secure life coverage, it instills a sense of financial security, boosting consumer confidence. According to the Press Information Bureau, India, in 2021, life insurance penetration in India stood at 3.2%, nearly double that of emerging markets and slightly higher than the global average. In 2022, life insurance premiums experienced a year-on-year growth of 10.2% with new ventures accounting for 45.5% of the total premiums collected by life insurance companies.

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Growing awareness about the significance of financial security and the role of insurance is a key factor driving expansion in both the life and non-life insurance markets. As people become more informed about the risks associated with life events, health issues, property damage, and other unforeseen circumstances, they are increasingly inclined to invest in insurance policies. This awareness is often bolstered by educational campaigns, financial literacy initiatives, and widespread access to information, encouraging individuals & businesses to protect their assets and well-being through insurance coverage.

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Fraudulent activities pose a significant threat to the life & non-life insurance market by undermining trust, increasing operational costs, and impacting honest policyholders. Insurance fraud including false claims, staged accidents, and identity theft leads to substantial financial losses for insurers. To compensate, companies may raise premiums, making insurance less affordable for genuine customers. Moreover, fraud strains resources, diverting them from legitimate claims processing and customer service, ultimately hindering market efficiency and eroding confidence in the insurance system.

COVID-19 Impact

The COVID-19 pandemic accelerated digital transformation in the life and non-life insurance sectors. Insurers rapidly adopted online platforms, enabling seamless policy purchases and claims processing. Moreover, the crisis heightened awareness about the importance of insurance, driving demand for health and life coverage. Innovative products tailored to pandemic-related risks, such as health insurance and travel insurance, gained prominence. The pandemic prompted insurers to enhance customer experiences, fostering positive changes and paving the way for a more resilient industry.

Life & Non-Life Insurance Market Trends

Rapid growth in the insurtech industry is propelling demand for both the life and non-life insurance. Insurtech companies leverage technology to streamline processes, enhance customer experiences, and offer innovative insurance products. For instance, in September 2023, Ensuredit collaborated with Simson Software to launch Enfin, a pioneering joint venture set to transform the insurance sector. This strategic partnership represents a significant initiative focused on tackling enduring industry obstacles and heralding an era of revolutionary innovation. This proliferation promotes market competitiveness, encourages product diversification, and ultimately expands the overall insurance market by making services more accessible & tailored to evolving customer needs.

The increasing demand for motor insurance is driving growth in both the life and non-life insurance markets. With the rising number of vehicles on the roads, there is a heightened need for comprehensive coverage against accidents and damages. Motor insurance providers are offering innovative policies, thereby appealing to a broader customer base. This surge in popularity not only fuels the non-life insurance sector but also indirectly benefits the overall insurance market by attracting more individuals and businesses seeking diversified insurance solutions.

Life & Non-Life Insurance Market Analysis

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Based on insurance type, the non-life segment held a market share of over 42% in 2022. Motor insurance with advanced features is driving growth in the non-life insurance segment. Policies incorporating innovative elements such as real-time tracking, accident prevention technologies, and personalized coverage options are gaining popularity. For instance, in January 2023, New India Assurance (NIA) launched its "Pay as You Drive" (PAYD) policy, which offers various features including discounts upon renewals, extended coverage beyond distance limits, and added protections such as zero depreciation, roadside assistance & return to invoice benefits.

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Based on distribution channel, the agency segment acquired the market share of 48% in 2022, propelled by personalized services and trust-based relationships. Agents offer tailored guidance, understanding individual customer needs and fostering trust through personalized interactions. By educating clients about insurance options and benefits, agents build awareness & confidence, leading to higher customer satisfaction and retention rates. This personal touch, coupled with the assurance of a trustworthy relationship, not only expands market penetration into areas with limited access but also enhances customer loyalty, making the agency channel a pivotal force in the insurance industry.

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North America dominated the global life & non-life insurance market with 45% of the revenue share in 2022, propelled by technological advancements and regulatory support. Technological innovations, especially in insurtech, have revolutionized the industry, introducing digital platforms and data analytics that enhance operational efficiency & improve customer experiences. These advancements attract a tech-savvy customer base and drive market expansion. Simultaneously, favorable regulatory policies provide a conducive environment for insurance companies, encouraging innovation and enabling new entrants to navigate the market landscape with ease. This regulatory support fosters healthy competition, leading to diverse product offerings and ensuring a dynamic & thriving insurance market in the region.

Life & Non-Life Insurance Market Share

Major players operating in the life & non-life insurance industry are

• AXA Group
• China Life Insurance Company
• Chubb Limited
• Cigna
• MetLife, Inc.
• New York Life Insurance Company
• Northwestern Mutual
• Ping An Insurance Group
• Prudential Financial
• UnitedHealth Group

Ping An Insurance Group & UnitedHealth Group held a significant market share. The major players operating in the market typically exhibit extensive market presence, diversified product portfolios, strong financial stability, and advanced technological capabilities. They leverage these strengths to maintain competitive advantages, attract customers, and drive innovation in policies & customer experiences.

Life & Non-Life Insurance Industry News

• In August 2023, IndiaFirst, a life insurance company, introduced the Guarantee of Life Dreams (G.O.L.D.) Plan, a non-linked and non-participating insurance product. This plan provides policyholders with consistent long-term income. Policyholders can choose premium payment terms of 6, 8, or 10 years for policy durations of 30 and 40 years.

This life & non-life insurance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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By Insurance Type

• Life
  • Individual
  • Group
• Non-Life
  • Home
  • Motor
  • Travel
  • Business
  • Others

By Distribution Channel

• Direct
• Agency
• Banks
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia

Frequently Asked Questions (FAQ)

How big is the life & non-life insurance market?

The market size of life & non-life insurance was worth USD 8 trillion in 2022 and is estimated to register a CAGR of over 4.5% between 2023 and 2032.

Why is non-life insurance is gaining traction?

In 2022, the non-life segment held a market share of over 42% in 2022 and is expected grow at highest CAGR through 2032, backed by the rising popularity of motor insurance with advanced features such as real-time tracking, accident prevention technologies, and personalized coverage options.

What are the factors driving the demand for life & non-life insurance in North America?

North America life & non-life insurance market held a major share of over 45% in 2022, propelled by technological advancements in insurtech, such as digital platforms and data analytics that enhance operational efficiency & improve customer experiences, along with regulatory support.

Who are the main contenders in life & non-life insurance market?

AXA Group, China Life Insurance Company, Chubb Limited, Cigna, MetLife, Inc., New York Life Insurance Company, Northwestern Mutual, Ping An Insurance Group, Prudential Financial, and UnitedHealth Group.