Global insurance premiums increased by 7.1% in 2025, reaching €6.9 trillion, as the industry maintained strong growth despite moderating from the exceptional gains recorded the previous year, according to the Allianz Research Global Insurance Report 2026.

The global premium pool expanded by €456 billion during the year, with growth easing from 9.4% in 2024 but remaining well above the ten-year average annual growth rate of 5.6%.

Life insurance remained the largest segment, generating €2.86 trillion in premiums, followed by property and casualty (P&C) at €2.32 trillion and health insurance at €1.69 trillion.

Property and Casualty Growth Returns to Normal Levels

The report suggests the property and casualty market is moving beyond the pricing-driven growth cycle seen in recent years.

Global P&C premiums increased by 3.8% in 2025, compared with 8.5% in 2024, as pricing conditions stabilised and claims inflation began to moderate.

North America continued to dominate the global P&C market, accounting for 52% of worldwide premiums, although regional growth slowed sharply to 2.2% from 9.7% a year earlier.

Western Europe recorded 5.3% growth, while Asia expanded by 4.0%.

The findings align with broader market trends that have seen property and cyber insurance pricing soften, while casualty lines continue to face pressure from litigation costs and social inflation.

Health Insurance Becomes Fastest-Growing Segment

Health insurance recorded the strongest performance among the industry’s three major business lines, with premiums rising 12.3% globally during 2025—the fastest pace since 2014.

The growth was driven by ageing populations, rising healthcare costs and increasing pressure on public health systems.

North America led the expansion with 14.9% growth, supported by accelerating medical inflation. The United States now represents more than 70% of global health insurance premiums.

Despite strong momentum, health insurance penetration across most Asian markets remains below one percent, highlighting significant long-term growth opportunities.

Asia Drives Life Insurance Expansion

Global life insurance premiums increased 6.9% in 2025, moderating from 11.3% growth the previous year as North America’s annuity boom began to ease.

Asia reasserted itself as the industry’s principal growth engine, with life premiums increasing 9.9% across the region.

China remained a standout performer, recording 11.4% growth as demographic trends, strong household savings and limited public pension provision continued to support demand.

Geopolitical Fragmentation Reshaping Insurance Markets

The report identifies geopolitical fragmentation as one of the defining forces shaping the future insurance landscape.

According to Allianz Research, increasingly fragmented trade, capital flows and regulation are creating more complex risk environments, challenging traditional cross-border business models while increasing demand for specialist coverages such as political risk, infrastructure and energy security insurance.

Insurers are expected to place greater emphasis on regional resilience, diversified operating models and geopolitical risk assessment within underwriting and capital allocation.

Asia Expected to Capture Future Growth

Looking ahead, Allianz forecasts global insurance premiums will grow by an average of 5.3% annually over the next decade.

Health insurance is expected to remain the fastest-growing segment, expanding 6.7% per year, followed by life insurance at 4.9% and property and casualty at 4.7%.

The global premium pool is projected to increase by €5.26 trillion by 2036, with life insurance contributing almost €2 trillion of that growth.

More than half of future life insurance expansion is expected to come from Asia, where the region is forecast to add over €1 trillion in premiums, surpassing the combined contribution of North America and Western Europe.

While North America is expected to retain its position as the world’s largest insurance market, India and China are forecast to continue increasing their share of global premiums as insurance penetration deepens across Asia.