Global insurance premiums rise 8.6% to 7 trillion euros: Allianz

May 27 - (The Insurer) - Global insurance premiums grew 8.6% with the addition of 557 billion euros in new premiums, Allianz said in its 2025 Global Insurance Report on Tuesday.

Total premium income reached 7 trillion euros across life, property and casualty (P&C) and health segments, the report said.

Allianz said this was the second consecutive year of record growth owing to strong performance in life and health insurance segments.

But the insurer warned that factors such as economic slowdown, volatile inflation, geopolitical woes and climate change will increasingly put the industry’s resilience to the test.

Global P&C premiums rose 7.7% in 2024, down from 8.3% in 2023. North America led with 8.2% growth, while Western Europe recorded 6.0%. Asia lagged with 4.0% growth.

The life insurance segment led global growth, expanding by 10.4%, driven by high interest rates and a rush in the U.S. to lock in returns through annuities. North America recorded 14.4% growth, while China surged 15.4%. Western Europe grew by 7.1%.

Health insurance premiums rose by 7.0% globally, with Asia recording a 12.6% jump, highlighting low public healthcare coverage in most markets. The U.S. remains the dominant player, accounting for two-thirds of global health premium income.

Global insurance penetration, which refers to the ratio of total insurance premiums collected to a country's gross domestic product, increased to 7.4% in 2024 from 7.1% in 2022.

The report projects global GDP growth to slow to 2.3% in 2025, the lowest since the COVID-19 pandemic. The U.S.-led trade war may weigh on global activity and inflation, increasing credit and market risks for insurers.

Allianz warns that this trade war may push the U.S. into a mild recession. Its inflation is forecast to rise, pushing consumer price inflation to 4.2% in the third quarter of 2025. In contrast, inflation in the eurozone is expected to fall below the European Central Bank's 2% target, aided by lower energy prices and a stronger euro.

Premium prices are also rising. The report stated that insurance inflation reached 8.8% in March 2025, up from 3.7% in 2023, outpacing general inflation. The insurer attributed the trend to higher claims costs and a push to restore profitability after years of compressed margins.