Insurance companies are financial intermediaries that offer direct insurance or reinsurance services, taking on risks in return for the payment of premiums. The difference between premiums and claims is the revenue of insurers. In addition, insurance companies invest their assets in low-risk securities such as U.S. bonds, which makes them sensitive to FED's interest rate.
According to Research and Markets, the global insurance industry is expected to reach $6,390.73 billion by 2025, growing at a CAGR of 6% between 2021 and 2025. The increasing risk awareness, rising demand for protection, and rate hardening in non-life insurance commercial lines should drive the industry's growth during the forecast period.
