"Non-life Insurance Market to Double by 2040"

[Asia Economy Reporter Changhwan Lee] The global non-life insurance market is steadily growing, centered on property insurance and liability insurance, and is expected to expand to more than twice its current size in 20 years.

Domestic non-life insurers are also expected to continue their growth trend, and it is analyzed that they need to respond according to changes in the insurance market environment.

According to the Korea Insurance Research Institute on the 21st, the global non-life insurance market, which was valued at $1.8 trillion (2,158 trillion KRW) in 2020, is projected to grow to $4.3 trillion (5,156 trillion KRW) by 2040.

The non-life insurance industry is closely related to economic growth; as the economy develops, insurance demand also increases. Therefore, the share of emerging markets with rapid economic development in the global non-life insurance market is expected to increase from 20% in 2020 to 33% in 2040, driving the overall industry's growth.

As of 2020, non-life insurance consisted of 42% automobile insurance, 25% property insurance, and 12% liability insurance. However, by 2040, the proportion of automobile insurance is expected to decrease to 32%, while property insurance will increase to 29%, and liability insurance to 25%.

Property insurance mainly compensates for property losses caused by fire, natural disasters, and the like. It was approximately $450 billion (540 trillion KRW) in 2020, but is predicted to increase about threefold to around $1.3 trillion (1,559 trillion KRW) by 2040.

This is because insurance related to major disasters such as wildfires and floods is expected to increase due to rapid climate change. The property insurance market, including housing insurance and production facility insurance, is also expected to grow with the economic development of emerging countries.

Liability insurance is also expected to maintain an annual growth rate of 4.7% until 2040 due to increased litigation costs resulting from social structural changes.

On the other hand, automobile insurance is projected to slow in growth due to increased safety from technological advancements, which reduce the frequency and severity of car accidents, and the expansion of ride-sharing phenomena driven by sustainability policies.

Kim Hyeran, a researcher at the Korea Insurance Research Institute, explained, "The main growth driver of the non-life insurance industry is economic development, and climate change, urbanization, technological advancement, and sustainability are also important factors. Non-life insurance companies need to recognize environmental changes related to each insurance category and identify and respond to new risks."

This content was produced with the assistance of AI translation services.