Global Insurance Market Trends 2025

Executive summary

The macroeconomic environment of lower, but still persistent, inflation and a gradual lowering of interest rates from high levels, as well as severe disaster events in a number of countries, impacted insurance markets in 2024. Against this backdrop, the 2025 edition of the Global Insurance Market Trends explores the overall performance and health of the insurance industry in 2024. It first examines the changes in insurance penetration rates. It then analyses the trends in premiums and claims in 2024 and examines the underwriting performance in the non-life sector. It also analyses the trends in premiums and payouts in the life sector. In addition, it discusses the investment performance and profitability of non-life, life and composite insurers. Finally, it outlines some key risks for the insurance sector going forward, as viewed from the perspective of national authorities.

Insurance penetration increased in 2024, but it remained below past levels, reflecting trends in life insurance

Total insurance penetration, defined as total gross premiums written as a percentage of GDP, increased in 2024. Despite this rise, total insurance penetration remains below the level of a decade ago. The increase in 2024 followed consecutive annual declines since 2021. The downward trend in insurance penetration and its recent increase are attributable to the life sector, as life insurance penetration declined over the period while non-life insurance penetration was stable.

Underwriting profitability in the non-life sector improved as premiums grew more than claims payments

While premium growth in the non-life sector slowed in comparison with 2023, premium growth exceeded the rise in claims payments, leading to underwriting profits in nearly all reporting jurisdictions in 2024. The non-life sector reported an average growth rate of 8.2% in gross premiums written in nominal terms and 4.2% in real terms; by contrast, gross claims payments grew by 7.5% on average in nominal terms and by 3.5% on average in real terms. The combined ratio, which is a key indicator for underwriting profitability, was below 100% in almost all reporting jurisdictions. The combined ratio improved in 2024 relative to 2023 in 72% of the reporting jurisdictions. Reinsurers benefitted from the positive underwriting performance of non-life insurers.

A favourable financial market environment spurred demand for life insurance savings products, resulting in an increase in premium growth

Gross premiums in the life sector increased in nominal terms in almost all reporting jurisdictions in 2024, mainly due to a favourable financial market environment. This widespread expansion drove the average nominal premium growth to 11.9% in 2024 among reporting jurisdictions, nearly double the 6.5% recorded in 2023. By contrast, gross claims payouts in the life sector increased by 7.5% in nominal terms and 3.5% in real terms on average, representing a marked slowdown in overall claims payments in relation to 2023, when gross claims payments in the life sector increased on average by 10.1% in nominal terms, and 4.6% in real terms.

Investment performance improved in the insurance sector

The favourable financial market environment allowed insurers to improve their investment performance in 2024. Insurers recorded a positive real investment rate of return in 71% of reporting jurisdictions in the life sector, in 71% in the non-life sector and in 68% in the composite sector. Compared with 2023, the share of insurers achieving positive real investment returns increased across all three business types.

Positive underwriting and investment performance led to an improvement in the profitability of insurers

Insurers recorded overall profitability in 2024. Profitability reflected a combination of both underwriting and investment performance; in most jurisdictions, these two components were positive and reinforced each other, contributing to strong overall results. In just a few countries, they moved in opposite directions, offsetting each other’s impact. In addition, profitability contributed to the increase in the shareholder equity of insurers in most of the jurisdictions in 2024.

Risks and vulnerabilities for the insurance sector include macroeconomic, disaster and cyber risks as well as financial market volatility

Two-thirds of reporting national authorities cited macroeconomic risks, such as inflation and interest rate volatility, and disaster risks as the main risks and vulnerabilities for their insurance industry. Almost as frequently, respondents also identified cyber risk.