The global premium finance market, valued at $52.2 billion in 2023, is projected to expand at a compound annual growth rate (CAGR) of over 10% from 2024 to 2032, according to Global Market Insights.
Rising insurance costs across various sectors—including auto, property, and health insurance—are driving the increasing demand for flexible payment solutions. As policyholders seek ways to manage rising premiums, the life insurance segment is expected to surpass $75 billion by 2032.
Non-banking financial companies (NBFCs) are expected to be the fastest-growing providers in this market, with a projected CAGR of over 12% through 2032. These firms are capitalizing on the rising need for accessible premium financing options across the globe.
China, in particular, is seeing rapid expansion in its premium finance market, fueled by a growing middle class and an increasing appetite for high-value insurance policies. As disposable incomes rise, more consumers are purchasing life and health insurance, further driving the demand for premium financing solutions.
South Korea’s steady market growth is also supported by high insurance penetration and a well-developed financial infrastructure. In the country, policyholders are increasingly turning to premium financing to manage the rising costs of life, health, and property insurance.
Meanwhile, Japan’s premium finance industry is expanding as an aging population drives demand for more comprehensive insurance coverage. As premiums for elderly care and long-term policies rise, premium financing is becoming an essential tool for managing the increasing financial burden. The integration of digital financial solutions is further improving accessibility and efficiency in the sector.
The global premium finance market is poised for significant growth in the coming years, with increasing demand for flexible payment options in response to rising insurance costs.
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