The global insurance industry expanded to an estimated €6.9 trillion in premium volume in 2025, representing a 7.1 per cent year-on-year increase, despite moderating from the exceptional growth recorded in the previous year, according to the Allianz Global Insurance Report 2026.
The report, titled The Future of Insurance in a Fragmenting World, said the industry added €456 billion to the global premium pool during the year, underscoring the sector’s resilience despite geopolitical tensions and an increasingly fragmented global economy.
Although growth slowed from 9.4 per cent in 2024, Allianz noted that the industry’s 2025 performance remained comfortably above its 10-year compound annual growth rate (CAGR) of 5.6 per cent, reflecting strong long-term demand for insurance protection.
Life insurance remained the industry’s largest segment, accounting for €2.861 trillion in premiums, followed by property and casualty (P&C) insurance at €2.320 trillion, while health insurance generated €1.688 trillion.
The report showed that the property and casualty market entered a period of normalisation after several years of rapid pricing growth. Global P&C premiums increased by 3.8 per cent in 2025, significantly lower than the 8.5 per cent growth recorded in 2024, as pricing cycles matured and claims inflation began to ease.
North America maintained its position as the world’s largest P&C market, accounting for 52 per cent of global premiums, although growth in the region slowed sharply to 2.2 per cent, compared with 9.7 per cent a year earlier. Western Europe recorded a relatively stronger performance with 5.3 per cent growth, while Asia expanded by 4.0 per cent.
In the life insurance segment, global premiums rose by 6.9 per cent, down from 11.3 per cent in 2024, as the surge in annuity purchases triggered by higher interest rates in North America began to lose momentum.
However, Allianz identified Asia as the industry’s principal growth engine, with life insurance premiums increasing by 9.9 per cent in 2025. China alone recorded 11.4 per cent growth, supported by demographic ageing, high household savings and relatively limited public pension coverage.
Health insurance emerged as the fastest-growing business line globally, with premiums rising 12.3 per cent in 2025, marking the strongest expansion since 2014.
According to the report, rising medical costs, ageing populations and mounting pressure on public healthcare systems continued to drive demand for private health insurance. North America posted 14.9 per cent growth, while the United States accounted for more than 70 per cent of global health insurance premiums.
Despite the normalisation following the COVID-19 pandemic, Allianz said Asia offers substantial long-term growth opportunities, noting that health insurance penetration remains below one per cent in most markets across the region.
Beyond market performance, the report highlighted geopolitical fragmentation as an increasingly important factor shaping the future of the insurance industry.
It noted that a more fragmented global economy is making risk environments more complex, weakening the benefits of traditional global diversification while increasing demand for specialised insurance solutions covering infrastructure, energy security and political risks.
The report said insurers would need to strengthen regional operating models, integrate geopolitical risk assessments into underwriting and capital allocation decisions, and develop products tailored to emerging risks.
Looking ahead, Allianz projected that the global insurance market would maintain steady expansion, forecasting an average annual growth rate of 5.3 per cent over the next decade.
Property and casualty insurance is expected to grow by 4.7 per cent annually through 2036, while life insurance is projected to expand by 4.9 per cent each year, supported by higher interest rates and growing demand for private retirement provision, particularly across Asia.
Health insurance is forecast to remain the industry’s fastest-growing segment, with annual growth averaging 6.7 per cent over the same period.
The report estimated that the global insurance premium pool would increase by €5.26 trillion by 2036, with life insurance contributing €1.991 trillion of the additional premiums.
More than half of this projected growth is expected to come from the wider Asian region, which is forecast to generate €1.004 trillion in new premiums, surpassing the combined contribution of North America and Western Europe.
Allianz also predicted that the global insurance market would continue shifting gradually towards Asia, with India and China together expected to gain nearly four percentage points in global market share over the next decade, while North America is projected to retain its dominant position and Western Europe is expected to lose further relative market share.
The report concluded that as trade, investment and regulation become increasingly fragmented, resilience is replacing efficiency as the defining principle of the global economy, making insurance more strategically important in supporting investment, innovation and economic confidence.
