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Research data analysed and published by ComprarAcciones.com shows the global insurance industry was worth $6.1 trillion in 2020 and that the industry will grow at a 3.5 per cent compound annual growth rate (CAGR) to $7.5 trillion by 2025.

According to the analysis, the global insurance industry maintained an up-trend in 2020, compared to several industries that were depressed by the economic impact of the COVID-19 pandemic. The industry is expected to maintain robust growth in the coming years, despite a considerable displacement of funds occasioned by the digital transformation.

The report said that, due to the ongoing digital transformation, a further $140 billion could shift from traditional insurers, doubling the value of tech-enabled and digital insurers to $280 billion by 2025. It said the acceleration to digital channels is expected to permanently alter the future revenue landscape for insurers.

A convergence of the health and wealth industry with life insurance is also forecasted to generate an additional $120 billion. This will come from smart health products ($60 billion), products for the aging population ($30 billion) and direct life and wealth management products ($30 billion).

An additional $50 billion will come from climate change-related risks. Cybersecurity threat mitigation services will also generate an additional $25 billion.

In order to keep up with the digital transformation, insurance agents and brokers are increasingly investing in digital technologies. A recent insurance digital transformation survey reveals that 39% of agents offer online portals. Around 78% of agents are using Facebook to acquire new clients, while 68% are using LinkedIn.

The report forecasts that the global insurance agent and broker market will grow at a 3.5% CAGR in 2021, going from $350.4 billion in 2020 to $362.54 billion.