While countries like China, Japan, the United Kingdom, and Germany boast large insurance markets, the United States remains the dominant force, generating half of the world’s insurance premiums. However, the gap in per capita insurance spending between Americans and other nations is staggering and is expected to widen in the coming years.
According to data from AltIndex.com, by 2028, the average American will spend $15,000 annually on insurance—seven times more than Europeans and thirty times more than Asians.
US Insurance Spending Per Capita Surged by 26% Since 2017, Projected to Grow Another 8% by 2028
Several factors contribute to the United States’ status as the world’s largest insurance spender. Health insurance plays a significant role in this, as the U.S. healthcare system is predominantly private and insurance-driven, leading to far higher per capita spending than in other countries. Additionally, the country’s high levels of wealth drive individuals and businesses to purchase a wide array of insurance products. As a result, the United States has one of the highest insurance penetration rates globally, with per capita spending that dwarfs that of other nations.
A Statista survey reveals that U.S. insurance spending per capita has risen dramatically by 26% since 2017, increasing from around $10,600 to nearly $13,600. This figure is expected to grow by an additional 8% by 2028, with Americans projected to spend about $1,400 more annually, bringing the total to nearly $15,000 per person.
When comparing U.S. insurance spending to other regions, the disparity is even more pronounced. By 2028, Americans are expected to spend seven times more on insurance than Europeans and approximately thirty times more than Asians. Even in the United Kingdom and Germany, where insurance spending is relatively high, the average will still be 3.5 times less than in the U.S., at around $4,000 per person.
China, despite being the world’s second-largest insurance market by total premiums, lags far behind the U.S. in per capita spending. Statista projects that by 2028, the average Chinese citizen will spend just $810 on insurance—18 times less than their American counterparts. In Japan, per capita insurance spending will remain higher than in China but still aligns with the Asian average, with Japanese individuals expected to spend $2,600 on insurance by 2028, slightly down from current levels.
The U.S. Will Represent 52% of Global Insurance Premiums by 2028
As more Americans seek out new insurance products and per capita spending continues to rise, the United States is set to further solidify its leadership in the global insurance market.
According to Statista Market Insights, the U.S. accounted for $3.52 trillion, or 46% of global insurance premiums, in 2017. This figure has since climbed to $4.64 trillion, making up 50% of the global total and underscoring the country’s dominance in the industry. By 2028, the U.S. insurance market is expected to surpass $5.1 trillion in value, with its share of global premiums rising to nearly 52%.
In summary, the U.S. not only leads the world in total insurance premiums but also in per capita spending, a trend that shows no signs of slowing. As insurance costs continue to rise, the gap between American spending and that of other countries is likely to grow even wider, cementing the United States’ position at the top of the global insurance market.
