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.
Australia holds a distinctive position in the global wealth picture. Net financial assets per capita reached €113,190 in 2025, ranking Australia 11th globally on financial assets alone. Add real estate and it climbs to third, with combined net financial and property wealth of €392,500 per capita, per Allianz Research. That gap between the financial and combined rankings is the widest of any country in the top 20. Australian household wealth sits predominantly in property, not markets.
Superannuation explains much of the financial assets picture. Insurance and pension assets account for 54.6% of Australian household portfolios, well above the global average of 24.8% and moving in the opposite direction to the worldwide trend. Globally, the insurance and pension share of household financial assets fell to a record low in 2025. In Australia, the compulsory nature of superannuation keeps the sector structurally protected, though that protection depends on continued contribution flows and regulatory stability.
Financial assets grew 9.6% in Australia in 2025, above the global average of 8.6 per cent, per the report. Real estate assets grew 8.5%, comfortably above the long-term average. The risk picture for Australian brokers is not one of immediate household balance sheet fragility. It is one of concentrated property wealth meeting a global market correction scenario that could compress business confidence, tighten credit, and push D&O and financial lines claims higher even if Australian household portfolios absorb less of the direct equity shock than US ones would.
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.
