Overall, the global insurance market is expected to grow at an annual rate of +5.3% over the next ten years, slightly above economic output.
Munich:The global insurance market is expected to continue shifting eastward over the next decade, with India and China gaining increasing relevance.
“Geopolitical fragmentation is reversing many of the assumptions that shaped the global economy for decades,” said Ritu Arora,Country Head, Allianz Services in India.
“As trade, capital flows and regulation become increasingly fragmented, resilience is replacing efficiency as the dominant organizing principle. This shift is making the operating environment more complex and costly, making the push for affordability even more urgent.” stressed Arora.
Nothing less than insurance’s strategic importance is at stake: not only as a mechanism for risk transfer, but also as a critical enabler of investment, innovation and economic confidence,highlighted Arora.
World: Cooling from exceptional growth, but far from slowing into weakness
Overall, the global insurance market is expected to grow at an annual rate of +5.3% over the next ten years, slightly above economic output.
For P&C, Allianz expects global annual growth of +4.7% up to 2036 (India: +10.2%).
The segment will show solid growth rates in almost all markets, as the increasing need for protection is a global phenomenon.
Allianz remains also confident about life insurance, which can expect annual growth of +4.9% thanks to higher interest rates (India: +10.5%). The smallest segment, health insurance, should remain the most dynamic, with annual growth of +6.7% (India: +12.5%) in the next ten years.
Allianz finds the global insurance industry to have grown by +7.1% to a total of USD8.1trn in 2025. This is an addition of USD536bn to the global premium pool. Although growth moderated from the exceptional +9.4% recorded in 2024, it remained comfortably above the ten year compound average growth rate (CAGR) of +5.6%, confirming that the industry’s growth drivers remain firmly intact.
Life insurance remained the largest segment (USD3,360bn), followed by P&C (USD2,725bn) and health (USD1,982bn).
The P&C market is moving from pricing boom towards normalization.
Global premiums increased by +3.8% in 2025, well below both last year’s +8.5% expansion and the segment’s ten year CAGR of +5.6%, as pricing cycles matured and claims inflation began to stabilize.
The life insurance market remained robust in 2025 with growth of +6.9% in 2025, down from the exceptionally strong +11.3% recorded in 2024. Global health premiums increased by +12.3% in 2025, the strongest expansion since 2014, as ageing populations, rising medical costs