The German insurance industry recorded solid growth in 2025, with total premium income rising by 6.6% to around EUR 254 billion, according to German Insurance Association (GDV). However, the sector expects a slower expansion of 4.7% in 2026, amid a weakening economic environment.

“2025 was a very good year for insurers, despite subdued economic conditions,” said GDV President Norbert Rollinger, warning that shrinking investment, weak construction activity, and muted consumption are likely to limit future growth.

Property and casualty insurance led the expansion, with premiums up 7.7%, driven mainly by motor insurance, which grew by 13.4% following price adjustments and higher repair costs. A relatively calm year for natural catastrophes supported underwriting results. Growth in this segment is expected to slow to 5.2% in 2026.

Private health insurance premiums increased by 7.3%, reflecting rising healthcare costs, while life insurance grew by 5.1%, supported primarily by a surge in single-premium business. Regular life premiums remained largely flat, and overall growth in the segment is forecast at just 1.1% in 2026.

Looking ahead, the GDV emphasized the need to strengthen funded pensions, develop sustainable solutions for natural catastrophe risks, and ensure a competitive European regulatory framework.

The full text of GDV’s analysis is available here.