The insurance, reinsurance and insurance brokerage market reached a value of nearly $5,227.1 billion in 2020, having increased at a compound annual growth rate (CAGR) of 0.7% since 2015. The market is expected to grow from $5,227.1 billion in 2020 to $7,404.0 billion in 2025 at a rate of 7.2%. The market is then expected to grow at a CAGR of 5.5% from 2025 and reach $9,670.1 billion in 2030.
Going forward, increase in chronic diseases and disabilities, impact of COVID-19, reinsurance adoption for healthcare, growth of the middle-class in emerging markets and increase in home ownership and mortgages will drive the growth. Factors that could hinder the growth of the insurance, reinsurance and insurance brokerage market in the future include lack of trust in insurance companies and non-investment grade.
The insurance, reinsurance and insurance brokerage market is segmented by type into insurance, insurance brokers & agents and reinsurance. The insurance market was the largest segment of the insurance, reinsurance and insurance brokerage market segmented by type, accounting for 85.6% of the total in 2020. Going forward, the insurance market is expected to be the fastest growing segment in the insurance, reinsurance and insurance brokerage market segmented by type, at a CAGR of 7.4% during 2020-2025.
The insurance market is further segmented by type into life insurance, property & casualty insurance and health & medical insurance. The life insurance market was the largest segment of the insurance market segmented by type, accounting for 55.3% of the total in 2020. Going forward, the health & medical insurance segment is expected to be the fastest growing segment in the insurance market segmented by type, at a CAGR of 11.1% during 2020-2025.
The insurance brokers & agents market is further segmented by type into insurance agencies, insurance brokers, bancassurance and other intermediaries. The bancassurance market was the largest segment of the insurance brokers & agents market segmented by type, accounting for 35.4% of the total in 2020. Going forward, the other intermediaries segment is expected to be the fastest growing segment in the insurance brokers & agents market segmented by type, at a CAGR of 9.2% during 2020-2025.
The reinsurance market is further segmented by type into property & casualty reinsurance and life & health reinsurance. The property & casualty reinsurance market was the largest segment of the reinsurance market segmented by type, accounting for 68.4% of the total in 2020. Going forward, the property & casualty reinsurance segment is expected to be the fastest growing segment in the reinsurance market segmented by type, at a CAGR of 7.1% during 2020-2025.
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The insurance, reinsurance and insurance brokerage market is also segmented by mode into online and offline. The offline market was the largest segment of the insurance, reinsurance and insurance brokerage market segmented by mode, accounting for 66.1% of the total in 2020. Going forward, the online segment is expected to be the fastest growing segment in the insurance, reinsurance and insurance brokerage market segmented by end-user, at a CAGR of 9.7% during 2020-2025.
The insurance, reinsurance and insurance brokerage market is also segmented by end-user into corporate and individual. The corporate market was the largest segment of the insurance, reinsurance and insurance brokerage market segmented by end-user, accounting for 57.9% of the total in 2020. Going forward, the individual segment is expected to be the fastest growing segment in the insurance, reinsurance and insurance brokerage market segmented by end-user, at a CAGR of 7.7% during 2020-2025.
Insurance, Reinsurance & Insurance Brokerage Market Regional Analysis
North America was the largest region in the insurance, reinsurance and insurance brokerage market, accounting for 33.5% of the total in 2020. It was followed by Asia Pacific, and then the other regions. Going forward, the fastest-growing regions in the insurance, reinsurance and insurance brokerage market will be South America, and, Africa where growth will be at CAGRs of 16.4% and 10.9% respectively. These will be followed by Middle East, and Asia Pacific, where the markets are expected to grow at CAGRs of 9.5% and 8.4% respectively.
The coronavirus pandemic that has swept the world is affecting every industry, in more ways than one. The insurance, reinsurance and insurance brokerage market is experiencing its fair share of the impact of COVID-19 on players in this market. People around the world have faced a severe shock with an increase in demand for life insurance. The virus can be widely spread through human contact, and governments worldwide are urging people to minimize this contact in efforts to contain the spread of the disease. Due to this, the life insurance organizations are trying to digitalize the process, to allow buying and disbursements of life insurance to continue as usual. The pandemic has taken a toll on new premiums on certain business lines, such as travel, events, and trade credit insurance, and losses from these lines of business may become significant. In 2019, top insurance players had delivered an annual Total Shareholder Return (TSR) of 20% since 2014. However, by the second quarter of 2020, the insurance sector underperformed the market by nearly 12% due to the impacts of the pandemic.
Global Insurance, Reinsurance & Insurance Brokerage Market Key Players Analysis
The global insurance, reinsurance and insurance brokerage market is fragmented, with a large number of top players and small players. The top ten competitors in the market made up to 18.84% of the total market in 2020. The market consolidation can be attributed to the partnerships and collaborations among the players in the industry to save costs, enhance their product offerings and expand geographically. The market is expected to be concentrated state in near future with the adoption of acquisition and merger strategies by the players to enter and expand into newer geographies. The Berkshire Hathaway was the largest competitor with 3.90% share of the market, followed by Allianz with 2.98%, Ping An Insurance with 2.32%, AXA with 2.13%, China Life Insurance Company Limited with 1.77%, People’s Insurance Company of China with 1.62%, Munich Re with 1.24%, Japan Post Holdings with 1.18%, Assicurazioni Generali with 0.86%, and Swiss Re Ltd. with 0.84%.
The top opportunities in the insurance, reinsurance and insurance brokerage market segmented by type will arise in the insurance segment, which will gain $1,916.2 billion of global annual sales by 2025. The top opportunities in segment by mode will arise in the offline segment, which will gain $1,137.6 billion of global annual sales by 2025. The top opportunities in segment by end-user will arise in the corporate segment, which will gain $1,183.5 billion of global annual sales by 2025. The insurance, reinsurance and insurance brokerage market size will gain the most in the USA at $462.7 billion.
