Published on : Dec 14, 2015
The global insurance market has been undergoing a period of recuperation after the economic crisis. Lately, it has been showing an impressive recovery in the market valuation. The growth of this market was reported approximately at 6.3% in 2014, which is around 3.5% more than its growth rate in 2013. The health insurance segment is witnessing the highest growth at present while the life insurance segment is strongly rallying to reclaim its position in this market.
Developing economies in Asia Pacific and Latin America are emerging as the most attractive markets for health insurance. North America, specifically the U.S., is likely to support the growth extensively. The implementation of the Affordable Care Act (ObamaCare) has improved the affordability as well as the quality of health insurance plans in the U.S., encouraging the U.S. citizens to turn towards them.
The life insurance market is showing a positive movement in almost all the regions. North America and Asia Pacific are demonstrating the strongest development in the life insurance market across the globe. The U.S. and Japan are biggest life insurance markets in North America and Asia Pacific respectively. Endowment policies are experiencing the highest demand among all life insurance products, thanks to the sales hike at Italian banks. Life insurance unit-linked plans (ULIP) are also performing well on account of the increasing return on equity (RoE) on these plans.
The escalating cost of healthcare, the increasing prevalence of accidents, and the rising incidences of calamities, all of them are ensuring that the future of the global insurance market is bright. The robust development, reported by the life insurance and the health insurance segments in recent times, is putting a positive impact on the global insurance market. Government-led initiatives are playing an important role in stimulating the insurance market across the world as people are participating more in government-sponsored life-and-health insurance projects. The minimal risk of getting duped is the main reason of consumers’ preference for government-sponsored projects over private insurance market.