Americans to Spend $4.5 Trillion on Insurance Premiums by 2029, 20% more than this Year

The US insurance spending has soared by 44% since 2017, causing Americans to pay a shocking $1.2 trillion more for health, life, home, and other insurance policies than they did seven years ago.  In 2024, the nation will spend around $3.8 trillion on insurance, and this shocking figure will grow even more in the following years. According to data presented by Stocklytics.com, US insurance spending is expected to jump by 20% and hit $4.5 trillion by 2029.

Americans Will Spend $650 Billion more on Insurance in 2029 than Europeans and Asians Combined

Although countries like China, the United Kingdom, Japan, and Germany all have large insurance markets, they are far below the United States when it comes to total insurance spending.

Americans have topped the global chart of the biggest insurance spenders for years, and that is unlikely to change in the future. The country’s healthcare system is predominantly private and insurance-driven, causing the US spending to outgrow other countries by a large margin. However, high levels of wealth have also been a significant driver for market growth, with individuals and businesses regularly buying different types of insurance. Today, the United States has one of the highest insurance penetration rates globally and much higher total insurance spending than any other country or region.

According to a Statista survey, US insurance spending has jumped by 44% since 2017, reaching a massive $3.8 trillion in 2024. This figure is forecasted to grow by 20% and hit $4.5 trillion in 2029. This figure is even more shocking when compared to other regions. Statistics show Americans will spend $650 billion more on insurance in 2029 than Europeans and Asians combined. The Asian insurance spending will hit $2.2 trillion the same year, and Europe follows with $1.65 trillion.

The insurance spending per capita also shows a shocking difference between the United States, Europe, and Asia. Statistics show Americans will, on average, spend $12,800 on insurance in 2029, six times more than Europeans and 27 times more than Asians.

The United States Will Account for 49% of Global Insurance Premiums by 2029, 2% more than this Year

With the rising number of Americans seeking new insurance products and the continuous growth in total insurance spending, the United States will only cement its position as the biggest insurance spender globally.

Seven years ago, the United States accounted for $2.72 trillion, or 42% of global insurance premiums. Since then, the US market share has jumped to 49% and is expected to continue rising. With a massive $4.5 trillion in total insurance spending, the US share in the global insurance landscape will increase to 49% by 2029 or 7% more than the combined market share of Europe and Asia.

Asian insurance premiums will comprise around 22% of the market total in 2029, while Europe is forecasted to have an 18% market share in the same year.