This chapter looks at the development of insurance penetration in 2024 and over the last decade across jurisdictions. It finds that total insurance penetration rose in 2024 after several years of decline, but remains below its level a decade ago. This trend is largely driven by life insurance penetration as non-life penetration has remained stable over the past decade.
Global Insurance Market Trends 2025
Abstract
Total insurance penetration, defined as gross premiums written for direct life and non-life insurance business as a percentage of GDP, increased in 2024. It was 6.2% on average among OECD countries in 2024, up from 6% in 2023, and 5.4% on average among all reporting jurisdictions, up from 5.3% in 2023. However, insurance penetration remains lower than ten years ago by 0.4 percentage point (p.p.) for OECD countries and 0.7 p.p. for all reporting jurisdictions (Figure 1.1). Moreover, the increase in the penetration rate in 2024 almost offset the decrease in insurance penetration rates observed from 2021 to 2023.
As a percentage of GDP
Note: For more details, please see the methodological notes in Annex B.
Source: OECD Global Insurance Statistics
Total insurance penetration rates were low in some jurisdictions and varied widely across countries. It was 1.1% in Romania in 2024 and 33% in Luxembourg (Figure 1.2). Insurance penetration was particularly low in Latin American countries such as Paraguay (1.2%), Guatemala (1.4%), Nicaragua (1.5%) and Bolivia (1.6%). Insurance penetration is also generally low in African countries, apart from South Africa and Namibia (Deloitte, 2024[1]), and in the Middle East region (Swiss Re Institute, 2025[2]). Low insurance penetration, particularly in the case of non-life insurance, suggests a potential lack of basic financial protection of people and businesses against certain risks for which insurers can provide coverage (OECD, 2024[3]). More advanced economies tend to have a large insurance sector as a share of GDP.
As a percentage of GDP
Note: For more details, please see the methodological notes in Annex B.
Source: OECD Global Insurance Statistics
Non-life insurance penetration rates are higher than life insurance penetration rates in a majority of countries. Countries with large life insurance penetration rates tend to have large overall insurance penetration rates (e.g. Denmark, France, Japan, United Kingdom). However, countries such as the Netherlands and the United States, despite having high overall insurance penetration rates and a large life sector, have higher penetration rates in the non-life sector.
The overall downward trend in insurance penetration rates over the last decade is attributable to the life sector. The non-life insurance penetration exhibited greater stability over that period, with penetration ranging on average between 2.1% and 2.5% (Figure 1.3). The downward trend from 2021 to 2023 was also driven by the life sector, as the average life insurance penetration also declined over that period.
Several factors may have accounted for the fall in life insurance penetration in recent years. For instance, financial market volatility and competitive banking products negatively impacted the life insurance sector in 2022, particularly life insurance products linked to market indices (e.g. unit-linked products) (OECD, 2023[4]). Additionally, the downturn in housing markets brought about by increased interest rates, aimed at countering high inflation, negatively impacted the demand for (credit-related) life insurance (OECD, 2024[3]). Also, premium growth in life insurance failed to keep pace with nominal GDP growth in many jurisdictions, as was the case in 2023 when inflation was high.
At the jurisdiction level, there were deviations from the trend. For instance, over the last decade, there were large increases in life insurance penetration in some jurisdictions, such as Canada, Hong Kong (China), Sweden and Uruguay; meanwhile, non-life insurance increased significantly in jurisdictions such as Luxembourg, the United Kingdom and the United States. Life insurance penetration has fallen significantly in some jurisdictions such as Australia, Ireland, Luxembourg, Portugal and Chinese Taipei (Tables A.A.1. to A.A.3 in Annex A).
As a percentage of GDP
Note: For more details, please see the methodological notes in Annex B.
Source: OECD Global Insurance Statistics