by Freedonia Focus Reports Team
May 23, 2023
Population growth, economic expansion will support gains
Cleveland, OH, May 23, 2023 — US insurance revenues are forecast to expand 5.3% per year in nominal dollars through 2027, according to Insurance: United States, a report recently released by Freedonia Focus Reports.
Population growth and continued expansion in economic activity are projected to drive insurance revenues. Healthcare insurance revenues will continue to expand due to gains in healthcare spending, while gains in Medicare enrollment will boost private insurer revenues derived from the management of Medicare Advantage plans. Revenues for property and casualty insurance are projected to grow as the building stock, number of motor vehicles in use, and business activity continue to expand.
Life insurance revenues are expected to increase as younger population cohorts start families and drive a slight rebound in the number of births, an event which often prompts life insurance purchases. The ongoing aging of the population will also continue to support life insurance revenues, as the older demographics plan for their final expenses.
Faster growth in insurance revenues will be limited by the relative ease of comparison shopping and switching between insurance companies by both businesses and households.
In real terms, insurance revenues are projected to rise 2.6% annually from 2022 to 2027, implying an average inflation rate of 2.7% per year. Real growth will stem from the rising number of persons, buildings, vehicles, and businesses that require insurance as the population grows and the economy expands. Inflation in the price of insurance policies will be caused by the rising cost of healthcare and of vehicles and buildings.
These and other key insights are featured in Insurance: United States. This report forecasts to 2023 and 2027 US insurance revenues in nominal and real (inflation-adjusted) US dollars. Total revenues in nominal terms are segmented by establishment in terms of:
To illustrate historical trends, total revenues and the various segments are provided in annual series from 2012 to 2022.
This report includes the results of a proprietary national online consumer survey of US adults (age 18+). This Freedonia Focus Reports National Online Consumer Survey has a sample size of approximately 2,000, screened for response quality, and representative of the US population on the demographic measures of age, gender, geographic region, race/ethnicity, household income, and the presence/absence of children in the household.
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional services reports can be purchased at Freedonia Focus Reports or MarketResearch.com.
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