Market Size for Insurance agency in 2026 [Example]

The total available market (TAM) for the insurance industry globally is substantial, with estimates indicating that the global insurance premiums reached over $6 trillion in recent years. However, focusing solely on property and casualty insurance, which is more relevant to solopreneurs, we can estimate that around 20% of that figure, which is approximately $1.3 trillion, reflects the specific needs of individuals and small businesses. With nearly 3 billion people being at least 18 years old globally, we consider them potential insurance customers, whether directly or through small enterprises that need coverage.

The serviceable addressable market (SAM) narrows down the TAM to those individuals and small businesses that are realistically reachable by your insurance agency. Focusing on small business owners and freelancers, who often seek coverage for liability, property, and health insurance, we estimate that about 20% of the TAM translates to roughly $300 billion in annual premium spending. Based on reports, there are about 600 million small businesses and self-employed individuals around the world that would potentially utilize your services, addressing their specific needs for insurance coverage.

The serviceable obtainable market (SOM) reflects the share of the SAM that your insurance agency can realistically capture within the first year. For a new agency targeting solopreneurs and small businesses, capturing around 2% of your reachable market would be a conservative estimate. This means approximately $6 million in premium revenue, which translates to around 12,000 individual customers assuming an average annual spending of $500 per customer. This estimation takes into account marketing limitations and the effectiveness of outreach in your early stages.