It's no exaggeration to say that the pandemic upended almost every aspect of society. The vital human impulse for togetherness was nipped and restrained as governments ordered citizens to stay inside. Businesses closed and entire industries suffered under the weight of restrictions, yet the global insurance market emerged relatively unscathed.
Some swift reactive measures acted as a guard against the worst of the Covid-19 storm. Companies that were lucky enough to have reinsurance policies were able to call upon them in their time of need. Now, in this global recuperation period, the global market for insurance continues to strengthen. Valued at $5.6 trillion in 2021, the market is expected to expand at a CAGR of 12%, reaching as much as $9.8 trillion by 2027.
Yet obstacles remain. In the coming years, companies will wrestle with numerous bottom-line issues, stemming from possible new strains of COVID-19 and derailed economies, to ensure the continued growth in global insurance. Nurturing the adaptive mindset borne from the pandemic is paramount to maintaining a sure footing going forward.
Some important takeaways from BCC Research’s market report Global Insurance Industry Market are as follows:
A Customer-Centric Approach is Key
A report from “The Insurance Industry for Today & Tomorrow” published by Capgemini suggests that a younger consumer base (made up of Gen-Z and Millennials) is moving towards third-party apps to manage their insurance policies. Brand loyalty will plummet as a new generation of consumers seek out hyper-personalized, digital solutions. Insurers will need to develop clever partnerships and utilize digital technology for real-time integration with these partners to stay ahead in an increasingly competitive landscape.
Adopting New Technologies
An abundance of new players means retaining customers may prove difficult. Another key way to ensure loyalty will be the adoption of innovative technologies. New systems that use cognitive computing, AI, machine learning, the Internet of Things, and blockchain can more effectively meet the needs of a young consumer base. Companies must seek out these new technologies in order to survive – and meanwhile enjoy the benefits of enhanced efficiency, productivity, and customer loyalty.
Untapped Potential in Emerging Markets
Countries like China and India could carry much of the growth of the global insurance market going forward. Showing off improved economic conditions, a large population base, and a flourishing middle-class, these emerging markets represent a prime opportunity for insurance penetration.
Insurance Premiums Are Climbing
It’s an unavoidable fact of life that prices are increasing, and insurance is no exception. To protect themselves from the onslaught of Covid-19-related claims and the economic downturn caused by the pandemic, insurers were forced to hike up prices. The result of this is a unique catch-22 scenario between insurer and consumer. On the one hand, the pandemic has been a cause for significant concern for insurers. Questions abound about whether companies can compensate for the wave of claims that arose from the sharp spike in deaths worldwide. On the other hand, more and more consumers are turning to insurance to safeguard them from catastrophic events like Covid-19.
Gain Intel on the Global Insurance Market
Do you need insight into the market picture for global insurance? With rising interest rates, volatile equity markets, and geopolitical uncertainty, gaining trusted data is needed now more than ever.
Download a free overview of our Global Insurance Industry Market report. This will give you a basic insight into the contents of the report and the current market picture. Or, follow the same link to purchase the report in full.