Close to 1,000 insurance companies failed globally from 2000 to 2024, according to a newly released report.
Insurer insolvencies remain a persistent issue globally, according to the latest research from the Property and Casualty Insurance Compensation Corporation (PACICC).
The organization’s third edition of the Global Failed Insurer Catalogue identified 965 insurance company failures across 71 countries between 2000 and 2024. Of these, 606 were property and casualty (P&C) insurers, 324 were life insurers, and 35 were composite insurers offering both types of coverage.
PACICC noted that insurer failures continue to occur, often under varied legal and regulatory frameworks. On average, 36 insurers globally exit the market involuntarily each year due to solvency concerns or regulatory intervention. The report defined these exits as non-voluntary and the result of binding regulatory decisions.
According to PACICC, insurer failures do not tend to occur in a steady stream but rather in “clusters”, with 65.7% of failures occurring in groups of three or more within a three-year span in a given jurisdiction. The report also identified 36 regions where more than a decade passed between documented failures, suggesting that extended periods of market stability can precede sudden and concentrated disruption.
The report also highlighted several contributing factors to insolvency, including weak underwriting, inadequate pricing, insufficient reserves, and complex corporate structures. In recent years, PACICC has observed a growing link between natural catastrophes and solvency challenges, particularly for P&C insurers. The report pointed to climate-related risks as a developing concern for insurer stability.
The Catalogue also underscored disparities in consumer protection across different markets. While Canada and some other jurisdictions have implemented Policyholder Protection Schemes (PPS), the report noted that many countries have not. As a result, policyholders in affected jurisdictions often face limited recourse when an insurer fails.
