US insurance spending to hit record high $15,000 per person in 2028 – Report

Cynthia Ezekwe

The average insurance spending per capita in the US is expected to soar to $15,000 by 2028, seven times higher than the average spending of Europeans, and thirty times more than Asians, according to a report by AltIndex.com, a data analysis website. 

The report  found that since 2017, the insurance spending of the average American has surged by 26 percent, and is projected to continue climbing by an additional 8 percent by 2028.

“The US insurance spending per capita is even more shocking when compared to other countries and regions. For instance, statistics show Americans will, on average, spend seven times more on insurance in 2028 than Europeans and roughly 30 times more than Asians. The United Kingdom and Germany, the only countries with insurance spending somewhat close to that in the United States, will still spend 3.5 times less, or $4,000 on average,’’ AltIndex noted. 

Despite being home to just 4.2 percent of the global population, the United States continues to dominate the insurance industry, contributing 50 percent of the world’s insurance premiums, according to market data.

Data also show that while other countries such as China, Japan, the United Kingdom, and Germany all boast sizeable insurance markets, none come close to the insurance spending of the United States.

According to the report, the US’ undisputed position as the world’s top insurance spender is rooted in a combination of factors.

AltIndex.com emphasised the US’s predominantly private and insurance-based healthcare system as a significant contributor to the high per capita spending on health insurance. 

In addition, the report attributed the nation’s growing insurance market to its considerable wealth, as both individuals and businesses invest heavily in different types of insurance coverage.

A recent survey conducted by Statista revealed that the average insurance spending per capita in the U.S has experienced a 26 percent growth since 2017, rising from approximately $10,600 to nearly $13,600.

This upward trajectory is expected to continue, with the report forecasting an additional 8 percent increase in insurance spending by 2028, elevating the average American’s annual insurance expenditure to nearly $15,000.

“According to Statista Market Insights, back in 2017, the country accounted for $3.52 trillion or 46 per cent  of global insurance premiums. Since then, this figure jumped to $4.64 trillion, making up 50 per cent  of the world`s total and highlighting its leading position in the industry.  Statista expects the US insurance market to hit over $5.1 trillion value in the next five years, with its market share rising to almost 52 per cent,’’ AltIndex.com noted. 

As the U.S continues to innovate and expand its insurance offerings, the report concluded that the nation’s dominance in the global insurance landscape will only strengthen in the years to come.

With increasing demand for novel insurance products and persistent growth in per capita spending, the U.S appears poised to solidify its position as the preeminent insurance market, leaving other nations in the dust as they struggle to keep up with the US’s relentless progress in the field.

Meanwhile, China, which currently stands as the world’s second-largest insurance market by total premiums, is expected to spend $810 per capita on insurance by 2028, 18 times less than the average American. Japan, while boasting a higher insurance spending per capita than China, is still largely aligned with the average for the Asian region, and is projected to spend $2,600 on insurance by 2028, a modest decrease from current levels.