The global insurance industry expanded by 7.1% in 2025, adding €456 billion to the global premium pool and bringing the total to €6.9 trillion, according to a new report published this week by Allianz Research.
The “Global Insurance Report 2026”, which analyses developments in insurance markets worldwide, found that while growth moderated from the 9.4% recorded in 2024, it remained above the industry’s 10-year compound annual growth rate of 5.6%.
Life insurance remained the largest segment at €2,861 billion, followed by property and casualty (P&C) at €2,320 billion and health at €1,688 billion.
The P&C segment slowed sharply, growing by only 3.8% in 2025 – well below both the previous year’s 8.5% expansion and its 10-year average of 5.6% – as pricing cycles matured and claims inflation stabilised. North America, which accounts for 52% of global P&C premiums, recorded growth of just 2.2%, down from 9.7% the previous year.
Health insurance was identified as the industry’s strongest structural growth story, with global premiums rising 12.3% in 2025 – the fastest expansion since 2014. The report attributed the surge to ageing populations, rising medical costs, and growing pressure on public healthcare systems. North America alone grew by 14.9%, with the United States now accounting for more than 70% of global health premiums.
Asia emerged as the principal engine for life insurance, with premiums rising 9.9% across the region and China alone expanding by 11.4%. The report noted that demographic ageing, high savings rates, and less comprehensive public pension systems underpinned Asia’s position as the world’s largest life insurance market.
The report also flagged geopolitical fragmentation as a growing force reshaping the industry, creating both operational complexity and new demand for specialised coverage across infrastructure, energy security, and political risk.
Looking ahead, Allianz Research projected the global insurance market would grow at an annual rate of 5.3% over the next 10 years, with the global premium pool reaching €12,129 billion by 2036.
“Geopolitical fragmentation is reversing many of the assumptions that shaped the global economy for decades,” said Ludovic Subran, chief economist and chief investment officer at Allianz. “As trade, capital flows, and regulation become increasingly fragmented, resilience is replacing efficiency as the dominant organising principle. This shift is making the operating environment more complex and costly, making the push for affordability even more urgent. Nothing less than insurance’s strategic importance is at stake: not only as a mechanism for risk transfer, but also as a critical enabler of investment, innovation, and economic confidence.”
