How to invest in the booming insurance market

The insurance sector is experiencing rapid growth after years of stagnation. Smart investors should buy in now, says Rupert Hargreaves

Insurance Umbrella concept
(Image credit: Getty Images)

Insurance is probably the least exciting but most crucial sector in the world. From the food we eat to the communication satellites that form the backbone of communications in our 21st-century world, the insurance industry touches every part of the global economy, and without it, we would be in a very different place.

Most people are familiar with the basics. Car insurance, for example, is a legal requirement in the UK, so anyone who drives or has driven will have some understanding of how this market works. The same applies to anyone who has bought a home with a mortgage. Banks usually require home insurance before lending on a property. These are two excellent examples of how insurance helps lubricate the global economy. In both cases, the policyholder is offloading the risk of a significant loss onto an insurance company for a small up-front payment – an insurance premium.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.