Global premium income enjoys highest growth rate since 2006

Growth poised to continue, Allianz report finds

Global premium income enjoys highest growth rate since 2006

Insurance News

By Terry Gangcuangco

Image credit: Allianz

Allianz has released its Global Insurance Report 2024, examining global insurance market trends and developments.

The report indicates that the global insurance industry experienced a remarkable 7.5% growth in 2023, the highest rate since 2006. Insurers worldwide collected €6.2 trillion in premiums, distributed across life (€2.6 trillion), property & casualty (€2.2 trillion), and health (€1.4 trillion) insurance. This marked a significant increase of €1.1 trillion, or 21.5%, over the past three years. However, due to high inflation, real premium growth was modest, with only a 0.7% uptick since 2020.

In 2023, premium growth was more evenly spread across all segments compared to 2022. Life insurance saw an 8.4% increase, P&C insurance grew by 7.1%, and health insurance rose by 6.6%. Notably, the life insurance sector, which grew just 3.1% in 2022, surged primarily due to Asia’s significant 14.9% growth last year.

US market dominance

Unlike other sectors where emerging markets gain prominence, the US remains the dominant player in the global insurance market. Over the past decade, the US has increased its market share from 41.3% to 44.2%. Conversely, Western Europe and Japan have seen declines in their market shares, while China has nearly doubled its share to 10.6%.

UK market dynamics

The UK insurance market saw a 4.6% increase in premium income in 2023, totalling €332 billion, maintaining its position as Europe’s largest market. The P&C segment was the primary growth driver, with a 9.6% increase, partly due to price hikes.

Meanwhile, the life insurance sector grew by about 3%, impacted by cost-of-living pressures. Health insurance also experienced a 6.6% rise but remains a niche market with less than 3% of total premiums. The UK market is projected to grow annually by 3.4% over the next decade as inflation stabilises.

Projected growth

More broadly, the global insurance market is anticipated to grow at an annual rate of 5.5% over the next decade, aligning with global GDP (gross domestic product) growth. The P&C segment is expected to see a 4.7% annual growth, health insurance 7.3%, and life insurance 5.1%, benefitting from higher interest rates. The total global premium pool is projected to increase by nearly €5 trillion, with the life segment accounting for the largest share.

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