World's largest insurance companies by net premiums 2020-2021

In 2021, the largest insurance company globally by net premiums written was UnitedHealth Group, which is a healthcare and insurance company headquartered in the United States. The net premiums written by UnitedHealth Group amounted to approximately 226 billion U.S. dollars in that year.

Impact of the insurance industry on the wider economy

Insurance is the transfer of risk from one entity to another in exchange for payment. It serves as a form of risk management, allowing a degree of financial security to policyholders in the face of uncertain loss. The insurance and the reinsurance industry are huge sectors; some of the world’s largest companies are insurance companies, but despite the status and the financial clout that comes with this, the insurance industry is heavily reliant on the state of the economy, which, at present, is not in the best of shape. Many economists, however, recognize the symbiotic relationship that exists between the two; insurance has the power to fuel growth.

Insurance sector fuels financial markets

More than 300 billion U.S. dollars are distributed by the insurance industry in the United States each year through policy benefits and claims. This money has a trickle down effect that can be felt in all areas of the economy. In addition to this, insurance companies also count as some of the largest investors out there; they invest in stocks and bonds which helps to keep the financial markets ticking over. It is estimated that insurance companies have a stake of around a trillion U.S. dollars in the United States economy alone.