The Insurance industry is expected to grow at a steady pace over the next five years to reach $733 billion.
Economic activity is expected to steadily increase during the period. As macroeconomic conditions improve, business formation and the number of individuals employed are expected to steadily increase. These trends will lead to increased demand for a variety of lines of insurance provided by industry operators needed to legally operate a business and employ workers. Similarly, improving macroeconomic conditions are expected to lead to improved disposable income for consumers. This will increase their rate of consumption of durable assets like cars and homes, which require insurance provided by industry operators to legally operate.
The industry is expected to continue benefiting from rising internet sales as they establish strong online. Operators with online platforms can sell products at lower rates and still generate favorable returns because they bypass the payment of commissions to agents and brokers. Furthermore, during the five-year period, industry operators are anticipated to increasingly use advanced analytics techniques to more accurately assess risk. In addition, other technological improvements, including cloud computing and systems upgrades, will enable insurers to boost operational efficiencies and more easily meet intensifying demand for transparency in reporting and self-disclosures.