Global Insurance Market Trends 2026

Executive summary

The insurance sector remained resilient in 2025 despite a more uncertain and challenging risk environment. Both life and non-life insurance markets recorded strong premium growth, and profitability remained positive across most jurisdictions. At the same time, insurers operated against a backdrop of growing risks related to extreme weather events, geopolitical uncertainty and cyber threats, all of which had implications for underwriting and investment performance. These developments suggest that the sector has navigated recent challenges relatively well, while also illustrating the increasingly complex environment in which insurers operate.

Insurance penetration increased in both OECD and non-OECD jurisdictions, with the overall trend continuing to differ between life and non-life markets

Total insurance penetration increased to an average of 6.6% of GDP in OECD countries in 2025, up from 6.2% in 2024, while it also increased to 4.2% from 3.7% among non-OECD reporting jurisdictions. Over the past decade, life insurance penetration in OECD countries has declined modestly, while non-life has grown. By contrast, non-OECD jurisdictions have experienced an increase in life insurance penetration, while non-life penetration remained broadly stable. Insurance market structures also differed significantly across jurisdictions, with some markets dominated by life insurance business and others largely comprising non-life business.

Beyond these differences in market composition, insurance penetration also varies considerably by income level. In 2025, total insurance penetration remained particularly low in lower-middle-income jurisdictions, at just 0.7% of GDP, compared with 6.7% in high-income jurisdictions, largely reflecting differences in life insurance penetration.

Non-life premium growth continued in 2025, supported by pricing adjustments in response to higher claims costs

Non-life real premium growth continued in 2025 but at a slower pace when compared with 2024. Premiums increased on average by 8.7% in nominal terms and 4.1% in real terms and remained positive across almost all reporting jurisdictions. A significant share of this growth reflected insurers’ continued efforts to adjust premiums in response to higher claims costs, particularly in motor vehicle and health insurance. Claims payments also increased, driven by repair cost inflation, rising healthcare expenditure and, in some jurisdictions, losses from extreme weather events. Nevertheless, underwriting performance remained positive in most markets, with combined ratios either stable or improving.

Life insurance premiums continued to grow, with growth drivers varying across markets

Life insurance markets continued to record strong growth in 2025, with average nominal premium growth reaching 8.7%. The drivers of growth differed across markets. In some jurisdictions, growth was supported by strong demand for investment-linked products amid favourable financial market conditions. In others, pension reforms, the expansion of occupational pension arrangements and demographic developments boosted premium income. Life claims payments declined in real terms half of reporting jurisdictions, partly reflecting lower surrender activity as interest rates stabilised and financial market conditions improved.

Real investment returns were mixed, but overall insurer profitability remained strong

Although the investment returns of insurers remained positive in nominal terms in 2025 across most jurisdictions, real investment performance was mixed compared with 2024. A larger share of life insurance markets recorded positive real returns than in 2024, while the share of non-life markets recording positive real returns declined. Inflation, rising long-term interest rates and differences in portfolio structures contributed to this outcome. Despite mixed real investment returns, the overall financial performance of insurers remained strong, reflecting the contribution of positive underwriting returns. Insurer return on equity averaged 16.7% in the life sector and 15.7% in the non-life sector, with only two countries reporting non-life markets with negative returns.

The importance of climate, cyber and geopolitical risks continued to grow

The risk environment facing insurers remained challenging in 2025. Cyber threats and climate‑related risks were among the most frequently cited concerns reported by national authorities, with cyber risk emerging as a leading concern across jurisdictions. Climate‑related risks remained prominent even as global insured catastrophe losses declined relative to 2024. Geopolitical developments attracted growing attention because of the potential implications for economic conditions, financial markets, investment returns and claims costs.