Insurance Market
The market for property insurance, which is becoming untenable in climate-risk areas like Florida, leading to state subsidies, insurers leaving the market, and the potential need for federal bailouts.
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8/20/2025, 4:32:14 AM
entitydetail.last_updated
8/20/2025, 4:33:44 AM
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8/20/2025, 4:33:44 AM
Summary
The insurance market is a fundamental risk management system where individuals or entities pay a premium to an insurer for financial protection against covered losses, damages, or injuries, as detailed in an insurance policy. This mechanism involves the policyholder submitting a claim for a loss, often after paying a deductible, with insurers sometimes using reinsurance to mitigate their own risks. Currently, the market faces significant challenges, particularly in regions like Florida, where increased hurricane intensity, exacerbated by record ocean warming and the removal of sunlight-blocking sulfur dioxide emissions from shipping, poses a massive economic threat to the real estate market and creates a crisis for insurers, potentially necessitating government intervention from government bodies like FEMA. Despite these challenges, the global insurance sector shows resilience with stable solvency, liquidity, and profitability, and is projected to see continued premium growth into 2025.
Referenced in 1 Document
Research Data
Extracted Attributes
Purpose
Protection from financial loss; form of risk management
Mechanism
Policyholder pays premium to insurer in exchange for compensation for covered losses
Key Parties
Insurer, Policyholder, Insured
Key Concepts
Premium, Insurance Policy, Claim, Deductible, Reinsurance
Potential Intervention
Government bodies like FEMA
Current Challenge Region
Florida, USA
Market Conditions (Asia)
Soft pricing (-1-10%), abundant capacity
Market Conditions (EMEA)
Broadly stable, with plentiful capacity and competition driving softening in some geographies, products, industries, and for well-managed risks
Causes of Crisis (Florida)
Increased hurricane intensity, record ocean warming, removal of sulfur dioxide emissions from shipping
Impact of Crisis (Florida)
Massive economic threat to trillion-dollar Florida Real Estate Market
Life Insurance Market Outlook
Projected to steadily grow
Projected Premium Growth (2024)
3.3% globally
Non-life Insurance Market Outlook
Expected moderate growth due to market softening and slower rate increases
Projected Return on Equity (2024)
~10% globally
Projected Return on Equity (2025)
~10.7% globally
Global Market Solvency (2024-2025)
Stable
Global Market Liquidity (2024-2025)
Stable
Market Conditions (Specific Products)
Soft for Directors & Officers and Cyber; challenging for Automobile, US-exposed Casualty, Complex Property, Natural Catastrophe risks
Global Market Profitability (2024-2025)
Stable
Projected Non-life Combined Ratio (2024-2025, US)
98.5%
Timeline
- Global insurance sector indicates stable solvency, liquidity, and profitability positions. (Source: Web Search)
2024
- US non-life (P&C) insurance sector achieved a US$9.3 billion underwriting gain in Q1. (Source: Web Search)
2024
- Global insurance premiums are estimated to grow by 3.3%. (Source: Web Search)
2024
- Insurers' return on equity is estimated to improve to about 10% globally. (Source: Web Search)
2024
- US non-life sector combined ratio is expected to reduce to 98.5%. (Source: Web Search)
2024
- Global insurance sector is expected to maintain stable solvency, liquidity, and profitability positions. (Source: Web Search)
2025
- Insurers' return on equity is estimated to improve to about 10.7% globally. (Source: Web Search)
2025
- US non-life sector combined ratio is expected to remain at 98.5%. (Source: Web Search)
2025
- Life insurance market is projected to steadily grow, while moderate growth is expected in non-life. (Source: Web Search)
2025
Wikipedia
View on WikipediaInsurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect against the risk of a contingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier, or underwriter. A person or entity who buys insurance is known as a policyholder, while a person or entity covered under the policy is called an insured. The insurance transaction involves the policyholder assuming a guaranteed, known, and relatively small loss in the form of a payment to the insurer (a premium) in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms. Furthermore, it usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insurer will compensate the insured, or their designated beneficiary or assignee. The amount of money charged by the insurer to the policyholder for the coverage set forth in the insurance policy is called the premium. If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster. A mandatory out-of-pocket expense required by an insurance policy before an insurer will pay a claim is called a deductible or excess (or if required by a health insurance policy, a copayment). The insurer may mitigate its own risk by taking out reinsurance, whereby another insurance company agrees to carry some of the risks, especially if the primary insurer deems the risk too large for it to carry.
Web Search Results
- IAIS mid-year Global Insurance Market Report 2025 reflects ...
Interim data analysis from the 2025 Global Monitoring Exercise (GME)indicates stable solvency, liquidity and profitability positions in the global insurance sector at year-end 2024.Aggregate systemic risk scores of global insurance groups at year-end 2024 were consistent with those at year-end 2023. [...] Basel, Switzerland–The International Association of Insurance Supervisors (IAIS) today released themid-year update of its Global Insurance Market Report 2025. The report, based on preliminary findings from the IAIS’2025 Global Monitoring Exercise (GME),analyses emerging trends and risks within the global insurance sector. [...] The Global Insurance Market Report (GIMAR) reports on the outcomes of the IAIS’ Global Monitoring Exercise (GME). The GME is the IAIS’ framework for monitoring risks and trends in the global insurance sector and assessing the possible build-up of systemic risk.It draws on data from 57 of the largest international insurance groups and aggregate market-wide data from supervisors across the globe, representing more than 90% of global gross written premiums. Aboutthe IAIS
- Q1 2025: Global Insurance Market Overview - Aon
The market across EMEA remains broadly stable, but with plentiful capacity and competition driving softening in some geographies, products, industries and for well-managed risks. Market conditions vary significantly by industry and product; directors and officers and cyber are soft, while conditions are more challenging for automobile, U.S.-exposed casualty, complex property and natural catastrophe risks. [...] | | Overall | Pricing | Capacity | Underwriting | Limits | Deductibles | Coverages | | --- | --- | --- | --- | --- | --- | --- | --- | | Asia | Soft | -1-10% | Abundant | Flexible | Flat | Flat | Stable | | China | Soft | -1-10% | Abundant | Prudent | Flat | Flat | Stable | | Hong Kong | Soft | -1-10% | Ample | Prudent | Flat | Flat | Stable | | India | Moderate | +1-10% | Abundant | Flexible | Increased | Flat | Broader | [...] Image 107: Podcast Image Podcast 16 mins On Aon Podcast: Approach to DE&I in the Workplace ### Q4 2023 Global Insurance Market Insights Our Global Insurance Market Insights highlight insurance market trends across pricing, capacity, underwriting, limits, deductibles and coverages. Image 108: Global Insurance Market Overview Article 12 mins Q4 2023: Global Insurance Market Overview Image 109: Trends to Watch in 2024 Banner Article 13 mins Top Risk Trends to Watch in 2024
- [PDF] 2025 Global Insurance Outlook | EY
term, according to many analysts. Declining inflation and stabilizing interest rates also contribute to the generally positive outlook. The life insurance market is projected to steadily grow, while more moderate growth is expected in non-life, due to a general market softening and slower rate increases. Across all lines of business, the insurance industry must prioritize resiliency to navigate evolving risks, ensure long-term stability and capture the opportunities presented by a constantly [...] changing environment. Real premium growth, total, non-life and life, 2021-2025F Total Non-life Life 3.6% 2.7% 4.4% 2.8% 3.9% 1.3% 3.2% 3.3% 2.9% 2.6% 2.6% 2.7% -0.8% 0.8% -3.8% 5.0% 2021 2022 2023 2024 2025F 4.0% 3.0% 2.0% 1.0% -1.0% -2.0% -3.0% -4.0% -5.0% 0.0% Source: Swiss Re Sigma, EY Insights 9 | 2025 Global Insurance Outlook Chapter 2 Emerging markets Seizing the opportunity for transformative growth As senior executives recognize, sustaining the positive momentum of recent years and [...] Pursuing multiple paths to growth Despite many challenges, the global insurance industry has delivered relatively strong performance in recent years and is expected to grow steadily for the next few years in both mature and emerging economies. This optimism is prevalent across the industry, even with the likelihood of more disruptions and unexpected events, like the recent wildfires and floods of the last year. 2 Favorable pricing conditions are likely to be sustained for at least the near
- 2025 global insurance outlook | Deloitte Insights
At a global level, estimates suggest that insurers’ return on equity could improve to about 10% in 2024 and 10.7% in 2025.27Insurance premiums are estimated to grow by 3.3% in 2024, with advanced markets contributing 75% of the expansion in premium volumes (figure 3).28 linkedin twitter facebook ### Or copy link Copy Image 25 Image 26 [...] Overall, the non-life (P&C) insurance sector in the United States achieved a US$9.3 billion underwriting gain in the first quarter of 2024—a significant recovery from the US$8.5 billion loss in the previous year’s corresponding quarter.9 The industry’s combined ratio improved to 94.2% in the same quarter, year over year, driven by multiple rate increases in the personal lines sector, which outpaced claims costs.10 [...] Profitability is expected to improve in the United States as well. Estimates suggest a reduction in the combined ratio for the non-life sector to 98.5% in both 2024 and 2025, from an estimated 103% in 2023.29The sector is expected to continue to benefit from deceleration in claims costs because of lower inflation, which decreased to 3% in June 2024 after reaching a peak of 9.1% in June 2022.30
- Global Insurance Report 2025: The pursuit of growth - McKinsey
Yet there are significant opportunities amid the challenges. The life insurance market is being reshaped by the aging global “silver” population of people aged 65 or older and the concentration of wealth among Generation X 7 Generation X is defined as people born from the early 1960s to 1980. and retirees. And while changing social norms and ways of living—such as fewer marriages, lower fertility rates, and more dual-income households—are challenging the traditional life insurance model, it [...] Global commercial P&C insurance lines continued to deliver strong growth despite more recent evidence of softening conditions. Premiums increased by an average of 8 percent annually in the past five years, while the average combined ratio for the industry trended downward to an estimated 91 percent in 2023.2 Global Insurance Database, AM Best, June 2024; McKinsey Global Insurance Pools, Markets database. Almost all of this growth was driven by higher premiums, and insurers must now focus on how [...] It has been a year of unpredictable mixed signals, uncertainty, and surprising upsides for the life and retirement insurance industry. While unexpectedly resilient macroeconomic conditions provided tailwinds—global GDP growing in real terms,4 _World economic outlook, International Monetary Fund (IMF),_ April 2024. inflation steadily decreasing,5 _World economic outlook,_ IMF, April 2024. and equity markets turning positive 6 MSCI World Index, MSCI, accessed October 2024.—not all product lines
Wikidata
View on WikidataImage
Country
Instance Of
Coordinates
Inception Date
1/1/2010
Location Data
Insurance Market, 4, Αγίου Δημητρίου, Ψυρρή, 1η Κοινότητα Αθηνών, Αθήνα, Δήμος Αθηναίων, Περιφερειακή Ενότητα Κεντρικού Τομέα Αθηνών, Περιφέρεια Αττικής, Αποκεντρωμένη Διοίκηση Αττικής, 105 54, Ελλάς
Coordinates: 37.9798447, 23.7261429
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