INSURANCE-INVESTMENT INTEGRATION AS A STRATEGY FOR IMPROVING HOUSEHOLD FINANCIAL MANAGEMENT: TRENDS, EVIDENCE, AND OUTLOOK TO 2030

Abstract

This article examines the convergence of insurance and investment instruments within the framework of household financial management, a trend accelerating significantly across global markets between 2020 and 2025. As households face compounding risks—macroeconomic volatility, climate-related shocks, rising healthcare costs, and inadequate pension coverage—the traditional separation between risk protection (insurance) and wealth accumulation (investment) has become increasingly obsolete. Drawing on data from the OECD Global Insurance Market Trends (2024, 2025), the International Association of Insurance Supervisors (IAIS) Global Insurance Market Report (2024), and industry forecasts from PwC, Swiss Re, and Grand View Research, this paper analyses the structural drivers of insurance-investment integration, quantifies the current market landscape, and develops scenario projections to 2030. Findings indicate that the global insurance market, valued at USD 10.11 trillion in 2024, is projected to reach USD 14.65 trillion by 2030 at a compound annual growth rate (CAGR) of 7.7%. Life insurance-linked investment products—including unit-linked policies, annuities, and endowment instruments—are emerging as primary vehicles for household capital accumulation. The paper further explores the role of Environmental, Social, and Governance (ESG) criteria and InsurTech innovations in reshaping product design and distribution. Policy implications for emerging economies, including Uzbekistan, are discussed in light of low insurance penetration rates and expanding middle-class demand for integrated financial products.