In today’s world, insurance has become an essential tool for managing risks and protecting against unforeseen events. It is a form of risk management that helps individuals and businesses hedge against the possibility of a contingent or uncertain loss. Insurance allows the transfer of risk from one entity to another in exchange for payment, thereby providing financial protection to the insured or policyholder.
Insurance is typically provided by insurers, which are companies that sell insurance policies to customers. The insurance rate or premium charged by the insurer is determined by various factors, such as the level of coverage and the likelihood of a loss occurring.
Risk management has become a separate field of study and practice, with insurance being a critical component of this discipline. An insurance contract is a promise made by the insurer to compensate the insured for a certain amount in consideration for a premium payment.
Once the insured purchases an insurance policy, they receive a contract that outlines the conditions and circumstances under which they will be compensated. This contract is known as the insurance policy.
The increasing integration of world economies has had a positive impact on the financial market, including the insurance industry. Insurance plays a crucial role in promoting stability and resilience in the global economy by providing financial protection against unforeseen events.
The insurance industry continues to experience rapid growth worldwide. According to the latest statistics from Swiss Re, the world insurance premium reached $5.1 trillion in 2020, representing a significant increase from the $4.3 trillion reported in 2010. Premium collections from both life and non-life sources have also continued to increase, with life insurance premiums growing by 3.3% and non-life insurance premiums growing by 2.9% in 2020.
Global insurance market in 2021: top 10 leading countries is as follows:
| Rank | Country | Turnover | 2020-2021 evolution | 2021 market shares | |
|---|---|---|---|---|---|
| 2021 | 2020 | ||||
| 1 | United States | 2 718 699 | 2 515 358 | 8.08% | 39.63% |
| 2 | China | 696 128 | 655 865 | 6.14% | 10.15% |
| 3 | Japan | 403 591 | 414 475 | -2.63% | 5.88% |
| 4 | United Kingdom | 399 142 | 341 950 | 16.73% | 5.82% |
| 5 | Germany | 296 380 | 238 999 | 24.01% | 4.32% |
| 6 | France | 275 779 | 260 322 | 5.94% | 4.02% |
| 7 | South Korea | 193 008 | 190 086 | 1.54% | 2.81% |
| 8 | Italy | 192 481 | 172 704 | 11.45% | 2.81% |
| 9 | Canada | 161 289 | 139 243 | 15.83% | 2.35% |
| 10 | India | 126 975 | 111 911 | 13.46% | 1.85% |
*In million USD
Source: atlas-mag.net