U.S. Insurance Services
Market Overview
- $4.5T market by 2029 – U.S. insurance services (measured in gross written premiums) is projected to grow at a 3.4% CAGR from 2025–2029.
- U.S. Insurance Premium Growth Drivers:
- Gross written premiums in the U.S. continue to climb, led by strong growth in property and casualty lines.
- Higher reinsurance costs are being passed down to policyholders.
- Exposure to natural catastrophes is also driving premium levels higher.
- Social inflation and rising jury awards are further contributing to increased costs.
- Persistent inflationary pressures on claims are pushing premiums upward across the industry.
- Despite profitability challenges in certain lines, gross written premiums continue to rise steadily.
- This reflects both the expanding risk landscape and insurers’ ability to maintain pricing power in today’s elevated risk environment.
- Convergence of Asset & Wealth Management with Insurance
- The industry is experiencing a convergence between asset & wealth management and traditional insurance services.
- Firms are increasingly cross-selling adjacent products to existing customer bases.
- In response to economic headwinds, many asset & wealth management firms are entering the insurance space through acquisitions.
- Growing Use of Insurance-Linked Securities (ILS) and Catastrophe Bonds
- Insurers are increasingly turning to ILS and catastrophe bonds to transfer portions of their risk to capital markets.
- Catastrophe bonds provide an alternative form of protection beyond traditional reinsurance.
- These bonds reduce balance sheet exposure to large natural disasters.
- By issuing catastrophe bonds, insurers gain upfront capital from investors.
- That capital can then be used to cover claims if a defined event occurs.
Industry Snapshot
$4.5T
U.S. insurance services market size expected by 2029
$70.2B
U.S. commercial P&C insurance market size in 2025
$63.6B
U.S. personal P&C insurance market size in 2025
$32.9B
Health and medical insurance segment value in 2025
$21.4B
Life and accident insurance market size in 2025
$6.6B
Annuities market size in 2025
14.8% CAGR
Expected for global cyber insurance premiums through 2030, reaching $32.4B
75% increase
In U.S. data compromises between 2022 and 2024 (1,802 to 3,158 breaches)
860M
individuals impacted by 5 mega-breaches in 2024
