AI is rewriting the rules of wealth creation - and the insurance industry is squarely in the crossfire.
Global household financial assets rose 8.6% to a record €268.4 trillion in 2025, according to Allianz Research's 17th annual Global Wealth Report. Markets did most of the work. Rising asset prices generated roughly four out of every five euros of new wealth, while fresh household savings declined 5.4% to €4.1 trillion. The headline looks impressive until inflation is factored in. Nominal assets are up 50% since 2019, but real wealth grew only 23%. Purchasing power sits just 5% above its 2021 level.
The distribution of those gains is where the insurance industry's exposure becomes evident.
Singapore held fourth place globally in net financial assets per capita in 2025 at €192,840, according to Allianz Research. Financial assets grew 9.1%, slightly above the global average of 8.6%. The more telling number for the insurance market is the portfolio composition. Insurance and pension assets account for 47.2 per cent of Singaporean household portfolios, against a global average of 24.8% and a North American figure of just 11%. Asia's savings model remains structurally different from the West, and that difference matters for how the region's insurance market is positioned as global wealth patterns shift.
Across Asia, excluding Japan and China, financial assets grew 9.8% in 2025. China grew 11.1%, though its household debt engine has stalled, with liabilities rising only 0.5% as the prolonged property downturn weighs on borrowing demand. Japan recorded 6.5% financial asset growth, with insurance and pension inflows rising 151.9%, albeit from a low base. The picture across the region is one of diverging growth paths converging on a common exposure: all are linked, through trade, capital flows and corporate earnings, to the AI-driven equity rally that the Allianz report identifies as the primary source of both global wealth creation and global market risk.
For brokers and underwriters across Asia-Pacific, the insurance and pension dominance in regional portfolios provides relative insulation from a direct US equity correction. The indirect channels, through business confidence, credit conditions and cross-border investment flows, are harder to hedge. The question the Allianz report raises is not whether Asia will feel a global AI correction, but through which channel it will arrive first.
The Allianz report also tracks a structural shift beyond the short-term correction risk. Insurance and pension assets grew only 5.0% in 2025, less than half the rate of securities, which rose 12.4%. Their share of global financial assets fell to a record low of 24.8%, down 7.4 percentage points from 2005. In North America, inflows into insurance and pension products fell 40.8% in 2025.
The long-run picture is sharper still. In the decade before the pandemic, insurance and pension products attracted an average of 44% of new household savings annually, according to Allianz Research. In 2025, that share was 22.4%.
Household savings have tilted toward capital markets in a way that amplifies both the upside of a bull run and the downside of a correction. The concentration of wealth in securities-heavy portfolios is not just a market risk; it is also an underwriting risk. The clients holding the most volatile assets are the same people and businesses buying D&O, financial lines, and high-net-worth personal coverage.
Coverage gaps are also widening at the policy level. ISO's generative AI exclusion is already on thousands of CGL policies, a sign that the insurance industry is still catching up to where the risk actually sits.
Beyond the correction scenario, the Allianz report raises a longer-run question the insurance industry has a stake in. Allianz Research estimates that AI could affect approximately one in four jobs across major economies over the next three years. Reorganization would account for 10% of those jobs, augmentation for 5%, and displacement for 8%. If productivity gains flow primarily into profits rather than wages, asset owners capture a disproportionate share. The top 10% of households globally already own 85.4% of net financial assets.
A shift in value creation from labor toward capital widens the gap between those with transferable assets to insure and those without. It also expands liability exposure tied to AI governance, as corporate boards face increasing scrutiny over how AI is adopted, disclosed, and managed.
"AI could become the next great wealth engine, but the key question is who gets a stake in it," said Katharina Utermoehl, head of thematic and policy research at Allianz Research.
Global financial assets are expected to grow by around 9% in 2026, Allianz Research projects, before settling at 5% to 6% annually over the medium term as fragmentation, persistent inflation, and elevated public debt constrain returns. For brokers and underwriters pricing financial lines, D&O, and life and annuity products, the Allianz report is more useful than a market summary. It maps where concentrated wealth, elevated valuations, and AI dependency have built up pressure, and what happens to insurance exposures when that pressure releases.
