Personal Insurance Market Size, Share, Growth, and Industry Analysis, By Type (Life Insurance, Health Insurance, Personal Accident Insurance), By Application (Child, Adult), and Regional Forecast to 2032

Last Updated: 08 January 2025

PERSONAL INSURANCE MARKET OVERVIEW

The global Personal Insurance market size expanded rapidly XX  in 2024 and is projected to grow substantially XX by 2032, exhibiting a prodigious CAGR XX during the forecast period.

The personal insurance market is a key cog in the financial protection wheel for individuals and families against and adverse event such as illnesses, accidents, disasters, or loss of property. Products offered by insurance companies under this market include the life insurance, health insurance, auto insurance, home owners insurance and travel insurance. Supported by the element of the financial security and especially risk management positions in the market for consistent growth worldwide. Technological improvements have continued to shape the sector since participants can now easily compare policies, make their purchase, and process claims on digital media. With the help of AI and data analysis, insurers adapt their services making products and services more suitable for individual clients, and thus increasing customers’ loyalty. Legal structures and policies along with governments pushing insurance in an increasing market especially in developing regions are fuelling the growth in this market. Also, due to the enlarging the middle-class customer base and the tendencies of the increase of disposable income in developing countries the insurance has become more affordable and available. However, threats such as high competition, fraud and economic fluctuations are risks factors inherent with the growth of the market. Nevertheless, the personal insurance market has great potential for further growth due to the constant development of new products and technologies, increasing focus on the customer, and the growth of the role of digital solutions in response to consumers’ growing requirements for integration into the global economy.

GLOBAL CRISES IMPACTING PERSONAL INSURANCE MARKETCOVID-19 IMPACT

Personal Insurance market Had a Negative Effect Due to Disruption in Supply Chain and Consumer Demand during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic brought some major changes to the Personal Insurance market share and its traditional work and people’s attitude. People let go of their insurance policies with less essential needs in the face of income losses resultant from government-imposed lockdowns, economic decline, and environmental disturbances. The new business sales in auto insurance segment diminished due to decreased car purchases during the crisis. The number of claims through the insurance, lockdown caused, and deaths caused by the pandemic, exerted more pressures on the insurance companies’ funds that sell health and life insurance as they had to review the premiums in their products and re-evaluate the risk profiles. Remote operations also added to disadvantages within the traditional insurers who relied on physical interface to market their products, conduct surveys, and offer claims, which caused delays and customer strikes. Similar to all the other fields, there has been a significant increase in the number of fraudulent claims in this pandemic leading to increased losses to the insurers. These challenges exposed the weaknesses that exist within this industry thus the push to embrace technology and better business models.

LATEST TREND

"Growing Popularity of Online Retail Channels for Fengzang Meat to Drive Market Growth"

One of the more compelling change agents impacting the personal insurance market driver is the increasing use of digital channel and insures solutions. Insurance companies are applying artificial intelligence, blockchain and data management techniques to enhance operation efficiency, tailor products and services, and enhance value propositions. Hitherto, various web-based platforms and mobile applications give policyholders easy accesses to plans, purchase policies and settle claims. Other solutions including telematics that is being embraced in auto insurance and health wearable’s in life and health insurance are now available and enable insurance companies to set premiums in real time. Thus, having adopted digital technology in operations, insurance industries have boosted access, lowered expenses and provided for the demand for service and openness in the industry.

PERSONAL INSURANCE MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Life Insurance, Health Insurance, Personal Accident Insurance

• Life Insurance: Also serves the purpose of delivering permanent financial security for the beneficiaries in case of policyholder’s death as well as income replacement.
• Health Insurance: It entails issues to do with; medical costs; management of funds for treatments, hospitalization, and prevention.
•  Personal Accident Insurance: Pays for damages to property, personal injury, disability or death due to an accident so as to be financially well off in case of an accident.

BY APPLICATION

Based on application, the global market can be categorized into Child, Adult 

• Child: Specifically designed for protecting the future of a child, these plans offer savings and protection, for education, health & other uncertainties.
• Adult: Offers medical, life and financial products for working executives and retirees who need overall protection.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.     

DRIVING FACTORS

"Rising Awareness of Financial Security to Boost the Market"

The prime factor behind the Personal Insurance market growth is the rising consciousness of the threats to the monetary security of persons. Coming to realize, the struggle that people go through: getting jobless, having an accident, health crises and dealing with economic fluctuations, insurance is indeed a safety net. Public and consumers’ awareness of insurances in general and health insurances in particular has greatly enhanced due to the education employment campaigns by governments and insurers especially in areas where insurance was not popular or existed at a very low level such as developing countries. The pandemic coupled with the increased eventualities exposed the importance of taking up the right health and life insurance policies thus many policies were sold out. Specifically, through social networks and the Internet, people have received detailed information on personal insurance benefits and were able to make a conscious decision, which contributed to market development.

"Technological Advancements in Insurance Services to Expand the Market"

One of the most notable innovations that have affected Personal Insurance market is the application of new IT solutions in insurance business. Unlike usual forms of insurance, whereby a consumer may find it cumbersome to compare different policies, buy a plan or even report a claim, new online platforms have made this process easier. The emergence of intelligent technologies through insures selects such as Artificial intelligence underwriting and the integration of blockchain in secure financial transactions has boosted the level of possibility and customer confidence. Wearable tech, telematics, IoT mechanisms to gather actual time information, basic insurance with customised premiums and value added favorable coverage. Such changes benefit not only consumers but create an appeal to tech-savvy young customers as well. With each passing day, the use of technology advances and many insurance industries stand in a better position in dealing with the customers and thus expanding the personal insurance market.

RESTRAINING FACTOR

"High Competition and Pricing Pressures in the Personal Insurance Market Impede Market Growth"

the personal insurance market has also a high level of competitive rivalry, which can be considered as one of the key threats to the insurers. Since there are many players within the industry offering similar products, a shift geared towards matching the price of rival’s results in profit margin shrinkage. Specifically the downside of launching an LCB product is that small and mid-sized companies have a difficult time making a profit while competing with the big brands. Moreover, there is also higher ease on the side of customers to compare policies availed, thereby exerting higher pressure regarding the price sensitivity. The intense competition in the insurance industry sometimes compels insurers to limit choices, having extras, or make them cheaper thus affecting the satisfaction levels. Competition is always helpful for consumers but it also creates significant competitive pressure upon insurers for generating differential sustainable growth.

OPPORTUNITY

"Expansion of Digital Insurance Platforms in Emerging Economies to Create Opportunity for the Product in the Market"

The rise in the number of smart phone and internet connection in emerging economies is considered to be key factor boosting the personal insurance market. It is shown that the sponsors can use web applications and mobile applications for reaching out to the unnerved population and providing affordable products for the specific target audiences with special needs. The introduction of mobile applications, online policy management, and instant claims processing eliminates factors such as location constraint and ignorance. Policies implemented by government for financial and insurance also add to the growing needs of the segment. Thus, insurers can gain considerably more customers, and strengthen customer engagement with brand new, easy to use interfaces, as well as localized products and services that would be tailored for these geography-specific markets.

CHALLENGE

"Managing Evolving Consumer Expectations in the Digital Era Could Be a Potential Challenge "

The increased and fluctuating consumers’ demands are also an imperative challenge to the personal insurance market. This orientation makes it possible for consumers of the present day world to be convenience focused, provide for high degrees of transparency, and require highly personalized services enabled by technology and digital services. Insurers are obliged to spend a lot of money on rewiring the old architecture, introducing AI and machine learning, and achieving satisfactory digital experience. Meeting these expectation increases the level of difficulty especially when it is coupled with the need to do it with less cash as well as within the required level of compliance to regulatory legal requirements. Moreover, data privacy issues and cybersecurity challenges uniqueness and distinctiveness associate with digital platforms are the other challenges. But managing all those factors of innovation, customers, and operations is a challenging yet a paramount task for those insurers that want to be successful.

PERSONAL INSURANCE MARKET REGIONAL INSIGHTS

• NORTH AMERICA (U.S. COMPULSORY)

North America especially U.S. Personal Insurance market is the largest market because of its strong insurance environment and increased customer knowledge. For example, online policy management and AI-assisted underwriting are widespread in the region, whereas the regulation rates are considerably higher. Still, health and life insurance remains two of the most important segments owing to the fact that the people are aging and costs related to health are increasing across the globe. The insurer also stands to benefit from a stiff economy as well as high disposable income. On the same note, North America continues to expand the market by shifting towards product differentiation such as the incorporation of IoT and telematics in insurance products.

• EUROPE

Competitive pressures in Europe’s personal insurance market remain high due to strict regulation of the industry and increasing focus on sustainability. This caused the need for health and life insurance in the region to rise from an ageing population and post-COVID-19 health consciousness. Insurers in the European region are shifting their concern towards sustainability or green investment and policies due to consumer shift towards sustainable products. Furthermore, digital transformation in countries of the United Kingdom, Germany, and France is beneficial in making it easier with clients’ interactions. Bilateral authorities provide insurance penetration by financial literacy and policy encouragements, which make Europe a significant factor in global personal insurance market.

• ASIA

The personal insurance market in Asia is growing at the rapidly increasing speed due to increase in middle and upper income individuals, increased penetration of insurance in the urban areas, and increase in consciousness for insurance and financial security. Some of these countries are China, India and Japan, where there is growing need for health and life and accident insurance. One major factor in the growth of insurance product distribution in the region is the increased use of technology particularly the Smartphone and the internet through e-commerce platforms. Government policies and programs related to financial sector development and affordable health care also reciprocate the function. Due to its mammoth population and having large unexplored market base in rural areas Asia is well set to dominate personal insurance market of the world.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

Some of the leading industry participants profiled in the personal insurance market are Allianz SE of Germany which offers insurance solutions for life, health and properties. AXA Group operates from France and is among the leading insurance and asset management companies in the globe. Other candidates include; Prudential Financial Company which deals in provision of life insurance and financial services and its home country is the U.S.A. Ping An Insurance Company is based in China and is a good example of a company applying a particular focus on the use of technologies in providing health and life insurance. Other market participants, such as MetLife, AIG, Berkshire Hathaway, among others, are appreciated for their identified innovation, international activity, and client orientation that fosters competition in the market.

LIST OF TOP PERSONAL INSURANCE MARKET

• ACE Insurance (Switzerland)
•  Achmea (Netherlands)
• AEGON (Netherlands)
•  AIA Group (China)

KEY INDUSTRY DEVELOPMENTS

November 2024: AXA Group has introduced an integrated End-to-End Artificial Intelligence for claims processing automation in order to increase the level of satisfaction for its customers. This system applies the machine learning approach for the faster and accurate processing of claims and for the clear demonstration to policyholders. It demonstrates that the firm of AXA is developing an appropriate strategy connected with digitalization experience and trying to improve its situation on the market through the provision of better services and increasing its performance.

REPORT COVERAGE

The personal insurance industry is expected to have a long term growth prospect due to the raising financial consciousness of public, innovation in use of IT platforms, and inclusion of more middle income earner class in developing nations. From a customer perspective, the digitalisation and insures transformation of the sector has been about creating customer-specific solutions and experiences. Hurdles such as competitiveness, pricing pressures and the continuously changing regulatory environment have made insurers to begin to look at the concept of innovation and sustainability as critical and not a choice. The pandemic also increased consumer awareness of the value of protecting their health and lives better through investing in health and life insurance contracts. It means that there is a great potential for its further growth, being presented by underdeveloped branches and the tendency towards growing importance of digital distribution markets, which all together brings financial stability all around the world.