Allianz Global Insurance Report: Industry Grew 7.1% to €6.9 Trillion in 2025, Asia Leads Future Growth

The global insurance industry continued its robust expansion in 2025, growing 7.1% to reach €6.9 trillion in total premiums and adding €456 billion to the worldwide premium pool, according to the Allianz Global Insurance Report 2026. Although growth moderated from the exceptional 9.4% recorded in 2024, it remained comfortably above the industry's ten-year compound average growth rate of 5.6%, confirming that the sector's fundamental growth drivers remain firmly intact.

The report breaks the market into its three core segments. Life insurance remained the largest at €2,861 billion, followed by property and casualty (P&C) at €2,320 billion, and health insurance at €1,688 billion. Each segment showed distinct dynamics. The P&C market is transitioning from a pricing boom toward normalization, with global premiums rising 3.8% in 2025 — well below the prior year's 8.5% expansion — as pricing cycles matured and claims inflation began to stabilize. North America remained the dominant P&C market at 52% of global premiums, though its growth slowed sharply to 2.2% from 9.7% the previous year.

Life insurance grew 6.9% globally in 2025, down from an exceptionally strong 11.3% in 2024, with the moderation driven primarily by North America as the annuity boom — fueled by households locking in higher interest rates — lost momentum. Asia re-emerged as the industry's principal growth engine, with life premiums rising 9.9% and China alone expanding 11.4%. Health insurance was the clearest structural growth story, with global premiums increasing 12.3% in 2025 — the strongest expansion since 2014 — driven by ageing populations, rising medical costs, and pressure on public healthcare systems.

Looking ahead, Allianz Research projects the global premium pool will grow by €5,260 billion over the next ten years, with most of that growth (€1,991 billion) coming from life insurance. Critically, more than half of the additional premium pool — €1,004 billion — is expected to be generated in 'Wider Asia,' exceeding the combined contributions of North America (€416 billion) and Western Europe (€402 billion). Allianz forecasts annual P&C growth of 4.7%, life insurance growth of 4.9% supported by higher interest rates, and health insurance growth of 6.7% through 2036. The report, subtitled 'The Future of Insurance in a Fragmenting World,' frames these projections against a backdrop of rising geopolitical tensions and trade fragmentation.