This chapter first presents the growth rates of gross premiums written in the life sector across jurisdictions. It highlights that a strong financial market environment boosted demand for life insurance savings products in 2024, leading to widespread premium growth across nearly all reporting jurisdictions. It then examines payouts in the life insurance sector in 2024 and shows that the growth of payouts in the life sector slowed in comparison with 2023.
Global Insurance Market Trends 2025
Abstract
Premium growth in the life sector accelerated in 2024 compared to 2023. Gross written premiums increased in nominal terms in almost all reporting jurisdictions (47 out of 52) (Figure 3.1). This widespread expansion drove the average nominal premium growth to 11.9% in 2024, nearly double the 6.5% recorded in 2023 (OECD, 2024[3]). In real terms, gross written premiums experienced an average increase of 7.8% in 2024, a significant rise from the mere 0.9% real growth experienced in 2023 (OECD, 2024[3]). However, a few jurisdictions experienced declines in nominal premiums, with the largest decreases observed in Israel (-15.9%) and Spain (-13.7%).
In per cent
Note: For more details, please see the methodological notes in Annex B.
Source: OECD Global Insurance Statistics
Life premium growth in 2024 was primarily driven by the high level of interest rates, strong equity market performance, regulatory reforms, favourable economic conditions, market developments and increased consumer awareness. However, these positive trends were partially offset by product mix shifts and specific regulatory or institutional events leading to premium declines in certain jurisdictions.
High interest rates have been a key factor underpinning life insurance premium growth. Central banks, including the U.S. Federal Reserve and the European Central Bank, raised policy rates in 2022 to counter inflation. Although rates started to decline in mid-2024 in most major OECD economies, they remained close to recent peaks for much of the year (OECD, 2025[11]). Higher interest rates generally boost demand for life insurance savings products, as they can offer attractive returns to policyholders. For instance, the French insurance supervisor estimated a 2.6% return on euro-denominated non-unit-linked policies, similar to 2023 levels and above the decade-long average (ACPR, 2025[12]). Mexico noted that demand for life insurance products with a savings component recovered as interest rates stabilised at higher levels. Among the various life insurance savings products, fixed annuities stand to benefit the most from increased interest rates (Swiss Re Institute, 2024[13]) (Figure 3.2). For example, in the United States, individual annuity sales significantly exceeded the average recorded over the past decade in 2024 (Swiss Re, 2024[14]). In the United Kingdom, the total value of annuity sales increased by 34% in 2024 and reached a ten-year high (ABI, 2025[15]).
Note: For more details, please see the methodological notes in Annex B.
Source: Swiss Re Institute (2024[13]), Sigma No 2/2024: Life insurance in the higher interest rate era: asset-savvy is the new asset-light, https://www.swissre.com/dam/jcr:73c636f8-1d47-4779-b757-845023332971/sigma-2-2024-life-annuity-insurance.pdf.
Strong equity market performance boosted demand for unit-linked products, contributing to life premium growth. For instance, the MSCI World Index recorded gains of 24.4% in 2023 and 19.2% in 2024, enhancing the return prospects of unit-linked products (MSCI, 2025[16]). Unit-linked products, which allow policyholders to select their investment strategy and assume higher risk for potentially greater returns, became increasingly attractive. This trend was reflected in several jurisdictions, including Belgium, Finland, France, Ireland, Latvia, Lithuania and Romania where increased interest in unit-linked products was cited as a major driver of gross premium growth for the life sector.
Regulatory changes in various jurisdictions also affected life premium volumes. In the Netherlands, the implementation of the New Pension Act led several pension funds to transfer portfolios to insurers through buy-outs, contributing to premium growth.1 In Uruguay, expectations of a reform of the pension system led to a large increase in demand for annuities, which increased annuity premiums, contributing to a 47.6% real increase in life insurance premiums, the largest real increase in life premiums among reporting jurisdictions.
Favourable economic conditions supported the growth of life insurance premiums. In several reporting jurisdictions, improved macroeconomic performance strengthened purchasing power and increased demand for insurance products. For example, Latvia reported that greater affordability following the inflation surge of 2022–2023 boosted demand for unit-linked products. Likewise, Paraguay noted that sustained economic stability enhanced citizens’ purchasing power and business activity, driving demand for insurance and contributing to broad growth in insurance premiums, including life insurance premiums.
Other factors supported the growth of life premiums in some jurisdictions. For instance, insurance market developments have played a role in premium expansion in some jurisdictions. Colombia reported that the entry of a foreign-controlled company offering annuities within the pension system significantly boosted sales of annuities, contributing to the growth of life premiums. In addition, heightened consumer awareness drove demand in some reporting jurisdictions. For example, Sweden reported that heightened sensitivity to economic uncertainty and market volatility during 2024 encouraged more individuals to seek financial protection through life and pension insurance products.
Some jurisdictions reported shifts in product preferences and declines in the sale of some life insurance products. For instance, in Latvia, while unit-linked products grew, traditional life insurance with savings components declined as insurers gradually shifted their focus away from these types of policies in response to market dynamics and lower demand. Similarly, in Slovenia, growth in index-linked and unit-linked insurance was offset by declines in life insurance products with profit participation and other life insurance products.
Premiums for the life sector declined in a few countries. For instance, in Costa Rica, two financial intermediaries were in liquidation in 2024, resulting in the termination of the life policies linked to their credit portfolios. This development was the main reason for decline in life premiums in Costa Rica. Likewise, in Israel, life insurance premiums experienced a notable decline following recent regulatory amendments which permit individuals contribute to long-term savings insurance policies only on the portion of their salary that exceeds twice the average wage. Contributions on the portion of salary below this threshold must be invested in a pension fund. This regulatory change was a key factor contributing to the 15.9% nominal decrease in life insurance premiums.
Gross claims payouts in the life sector increased by an average of 7.5% in nominal terms and 3.5% in real terms across reporting jurisdictions (Figure 3.3). This rate of growth represents 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. The trends of claims payouts exhibited significant variation across jurisdictions. Some jurisdictions recorded substantial increases in nominal payouts, whereas others experienced notable declines. Türkiye experienced the highest increase (65.7%) while Luxembourg recorded the largest decrease (-18.4%) in nominal payouts.
In per cent
Note: For more details, please see the methodological notes in Annex B.
Source: OECD Global Insurance Statistics
The increase in payouts can be explained by several factors. Like in the non-life sector, the growth in the number of life insurance policies affected insurers’ payouts. For example, in some jurisdictions such as Chile, the United Kingdom and Uruguay, growth in payouts came from the increased sales of annuities. In Colombia, the increase in claims paid in the life insurance was primarily due to the increased sales of the disability and survivorship insurance within the pension system. In addition, an increase in withdrawals and surrenders resulted in higher payouts in some jurisdictions. For instance, in Lithuania, payouts grew mainly due to an increase in partial withdrawals of accumulated sums under unit-linked life insurance contracts and an increase in the claims paid upon the expiry of these contracts. In Mexico, withdrawals made in life insurance savings products caused the increase in claims. In some jurisdictions such as Greece and Chinese Taipei, the increase in claims was mainly attributed to the increased surrenders.
The decrease in payouts in some jurisdictions can be attributed to various factors. Regulatory changes affected payouts in some jurisdictions. For instance, the decline in life payouts in Latvia was partly due to income tax being introduced on payouts from cross-border unit-linked insurance business in Estonia, which came into effect on 1 January 2024. This led to a significant increase in claims in 2023, as policyholders in Estonia sought to withdraw their funds before the new tax rules came into effect. Payouts then returned to lower levels for the cross-border business of Latvian insurers in 2024. A decrease in the number of claims also contributed to lower payouts in some jurisdictions. For instance, both France and Portugal noted a decline in surrenders of some life insurance policies, which contributed to reduced payouts by the life sector. In Nicaragua, life payouts declined mainly due to a reduction in the number of reported claims. The decline in the number of claims might be linked to the increased interest in life insurance savings products due to higher interest rates, which may have increased retention. In addition, changes in mortality rates may also impact the level of payouts. For instance, in Peru, life payouts stabilised to more moderate levels, following the higher mortality rates between 2020 and 2022 due to COVID-19.
← 1. The New Pension Act took effect on 1 July 2023 and overhauls the pension system. The transition from the current system of defined benefit plans to the new system of defined contribution plans with some collective risk sharing features must be completed by 2028: The Dutch Future Pensions Act: five things you need to know - NautaDutilh