The global insurance industry is estimated to have grown by +8.6% in 2024. This again exceeded the exceptional +8.2% growth recorded in the previous year. Insurance companies worldwide experienced an increase in premiums of EUR 557 billion, bringing total premium income to EUR 7.0 trillion, according to the Allianz Global Insurance Report 2025.
Life insurance remained the largest segment with premium income of EUR 2,902 billion, followed by P&C insurance (EUR 2,424 billion) and health insurance (EUR 1,682 billion).
Growth in P&C insurance was +7.7% last year, slightly lower than in the previous year (+8.3%). It is worth noting that growth was mainly driven by the largest market, North America, where premium income increased by +8.2%. More than half of the world's premiums are written in this region. While premium income in Western Europe increased by +6.0%, the Asian market was less dynamic, growing by only +4.0%. It is therefore still smaller than its Western European counterpart.
Life insurance grew by +10.4% in 2024, outperforming the other two segments and growing faster than in 2023 (+8.2%). The main driver was once again North America, which grew by an astonishing 14.4%. With interest rates reaching new highs, there was a run on annuities. Higher interest rates also led to an increase in premium income in Western Europe (+7.1%). In Asia, most markets showed strong growth, led by China with a growth rate of +15.4%. In contrast to the US dominance in P&C insurance, global market shares in life insurance are relatively evenly distributed. Asia (including Japan and China) leads with more than a third of premiums.
Health insurance grew by +7.0%. Demand remained very strong, particularly in Asia (+12.6%). This reflects the still low insurance penetration (premiums in % of economic output) in the region, which is below 1% in all markets except Taiwan. Even more than in life insurance, demand is driven by the state of the social security system, i.e. the level and quality of public healthcare.
According to the report, overall, the global insurance market is expected to grow at an annual rate of +5.3% over the next ten years, slightly above economic output. For Germany, overall growth is expected to be +4.5% (nominal GDP: 3.0%). For P&C, we expect annual growth of +4.5% up to 2035. The segment will show solid growth rates in almost all markets, as the increasing need for protection is a global phenomenon. Allianz Research also remains confident about life insurance, which can expect annual growth of +5.0% thanks to higher interest rates. Asia and China remain the growth engines, driven by the need for private provision in the face of accelerating demographic change. The smallest segment, health insurance, should remain the most dynamic, with annual growth of +6.7%. Asia still has a lot of catching up to do.
The report can be found here.
