Although countries like China, Japan, the United Kingdom, and Germany all have large insurance markets, the United States remains the biggest spender in the insurance landscape by a significant margin, generating half of the global insurance premiums. However, when it comes to insurance spending per capita, the difference between Americans and other nations is quite shocking, and it will only increase in the future.
According to data presented by AltIndex.com, Americans will spend an average of $15,000 on insurance by 2028, seven times more than Europeans and thirty times more than Asians.
US Insurance Spending per Capita Jumped by 26% Since 2017 and Will Grow by a Further 8% by 2028
There are several reasons why the United States has been the biggest insurance spender for years. For a start, health insurance is a major component of the US market. The country`s healthcare system is mainly private and insurance-driven, leading to much higher per capita spending than other countries. High levels of wealth have also been a major driver for market growth, with individuals and businesses regularly buying different types of insurance. As a result, the United States today has one of the highest insurance penetration rates globally and much higher spending per capita than any other country.
According to a Statista survey, the average insurance spending per capita in the United States has seen a substantial 26% increase since 2017, rising from roughly $10,600 to almost $13,600. This figure is projected to grow by a further 8% in the coming years, with Americans spending $1,400 more on insurance, or close to $15,000 annually, by 2028.
The US insurance spending per capita is even more shocking when compared to other countries and regions. For instance, statistics show Americans will, on average, spend seven times more on insurance in 2028 than Europeans and roughly 30 times more than Asians. The United Kingdom and Germany, the only countries with insurance spending somewhat close to that in the United States, will still spend 3.5 times less, or $4,000 on average.
China, the world`s second-largest insurance market by total premiums, is far from these figures. According to Statista, Chinese will spend roughly $810 on insurance by 2028, or 18 times less than Americans. Although Japanese insurance spending per capita is higher than that in China, it is still in line with the Asian average. By 2028, the Japanese will spend $2,600 on insurance, or $100 less than this year.
The United States Will Account for 52% of Global Insurance Premiums by 2028
With the rising number of Americans seeking new insurance products and the continuous growth in spending per capita, the United States will only cement its position as the market leader in the future.
According to Statista Market Insights, back in 2017, the country accounted for $3.52 trillion or 46% of global insurance premiums. Since then, this figure jumped to $4.64 trillion, making up 50% of the world`s total and highlighting its leading position in the industry. Statista expects the US insurance market to hit over $5.1 trillion value in the next five years, with its market share rising to almost 52%.
