The global insurance sector recorded an estimated growth of +8.6% in 2024, according to Allianz Research’s newly released report.
The figure marks a second consecutive year of strong expansion, following the +8.2% increase seen in 2023.
Total global premium income grew by €557 billion to reach €7.0 trillion in 2024. Life insurance accounted for the largest share of this, generating €2,902 billion in premiums. Property and casualty (P&C) insurance followed at €2,424 billion, while health insurance contributed €1,682 billion.
P&C insurance premiums increased by +7.7% last year, a slight decline from +8.3% in 2023. North America remained the dominant market, with growth of +8.2% and accounting for more than half of global P&C premium volumes. Western Europe posted a +6.0% rise, while Asia’s growth stood at +4.0%, leaving it behind its Western European counterpart in terms of size.
Life insurance premiums saw the highest annual growth across the three segments, rising +10.4% in 2024. The North American market was the primary driver, expanding by 14.4% amid strong demand for annuities following record-high interest rates. In Western Europe, life premiums rose by +7.1%. Asian markets also contributed, with China leading regional growth at +15.4%.
Unlike P&C, life insurance premium volumes are more evenly distributed globally, with Asia – including China and Japan – commanding over one-third of the total.
Health insurance posted growth of +7.0%, driven largely by Asian markets, where premiums increased +12.6%. Allianz noted that this reflects low insurance penetration across most of Asia, where the share of premiums relative to economic output remains below 1% in nearly all countries except Taiwan. Demand in this segment is closely tied to the structure and reach of national healthcare systems.
"Insurance remains a growth industry," said Ludovic Subran (pictured above), chief economist at Allianz. "However, this growth is largely fuelled by policy inaction: underinvestment in adaptation is leading to increasing climate damage, while delayed pension reforms are requiring higher savings efforts from individuals.”
Current insurance penetration for such risks stands at 2.5% in Europe, compared with 4.4% in the US. Allianz anticipates that premium growth in European P&C will average +4.2% annually, up 0.6 percentage points from previous projections. By contrast, projections for the US and Asian markets have been revised downwards slightly.
Globally, the insurance industry is forecast to expand at an average rate of +5.3% annually over the next decade, marginally outpacing economic growth. In the UK, overall insurance growth is expected to reach +3.1%. The P&C segment is projected to grow +4.5% per year globally until 2035, and by +3.2% in the UK. This steady growth is attributed to rising global demand for financial protection.
Over the next ten years, global premiums are expected to rise by €5,319 billion. Life insurance is set to contribute the largest share at €2,055 billion, with €1,071 billion of that increase coming from Asia and China – more than the combined gains of North America (€416 billion) and Western Europe (€351 billion).
The P&C segment is expected to grow by €1,522 billion, with 40% of this attributed to North America. In health insurance, additional premiums of €1,743 billion are projected, most of which will come from the US.
The report also highlights increasing concerns about the impact of climate change on the viability of certain insurance markets. Allianz board member Günther Thallinger has cautioned that the growing intensity and frequency of climate events may render specific regions uninsurable.
He warned that climate-related risks could pose a systemic threat to the financial system if left unaddressed, underscoring the need for broader structural responses beyond the insurance sector.
In addition to macroeconomic and environmental factors, Allianz points to emerging technologies such as generative artificial intelligence as having the potential to reshape the insurance industry. Insurers are expected to leverage AI-driven tools to automate administrative processes, enhance underwriting precision, and improve customer engagement.
These advances may result in significant operational efficiencies and cost savings, particularly in mature markets where competitive pressures are high.
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