Allianz Research’s latest “Global Insurance Report” has found Asia to be the life insurance industry’s upcoming principal growth engine. According to the report, while the global insurance industry is estimated to have grown by 7.1% to 6.9 trillion euro (USD 7.9 trillion) in 2025, adding 456 billion euro to the global premium pool, growth still moderated from the exceptional 9.4% recorded in 2024. However, the ratio remained comfortably above the industry’s ten-year compound average growth rate (CAGR) of 5.6%, confirming that the sector’s growth drivers remain firmly intact.
While life insurance remained the largest growth segment (2,861 billion euro), it was followed by P&C (2,320 billion euro) and health (1,688 billion euro).
“The life insurance market remained robust in 2025, although the exceptional post-rate-hike boom in North America has clearly lost momentum. Global life premiums grew by 6.9% in 2025, down from the exceptionally strong 11.3% recorded in 2024 but still comfortably above historical norms. The moderation was driven primarily by North America, where the annuity boom fuelled by households locking in higher interest rates has started to lose momentum,” Allianz Research noted.
Asia, however, has further consolidated its status as the world’s largest life insurance market, supported by demographic aging, high savings rates, and less comprehensive public pension systems. The life insurance premiums in Asia grew by 9.9% in 2025, with China alone expanding by 11.4%.
“Health insurance is becoming the industry’s clearest structural growth story. Global health premiums increased by 12.3% in 2025, the strongest expansion since 2014, as aging populations, rising medical costs, and pressure on public healthcare systems continued to drive demand for private protection. North America alone grew by 14.9% as medical inflation accelerated further, with the US now accounting for more than 70% of global health premiums. Despite some normalization following the post-Covid surge, long-term growth potential remains particularly strong in Asia, where health insurance penetration is still below 1% in almost all markets,” Allianz Research said.
Among Asia’s key insurance markets, Singapore recorded strong growth of 10.7% in 2025, with total premium income rising to 39.7 billion euro. P&C insurance premiums, on the other hand, expanded by 8.3%, while life insurance premiums grew by 10.8%, well above the 2015-2025 average of 7.5%, supported by population aging and increasing demand for private pension provision. Health insurance premiums rose by 12.6%, reflecting growing demand for supplementary health coverage.
“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 Singapore, overall annual growth is expected to be 5.7% (nominal GDP: 3.7%). For P&C, Allianz expects global annual growth of 4.7% up to 2036 (Singapore: 5.6%). The segment will show solid growth rates in almost all markets, as the increasing need for protection is a global phenomenon,” the agency noted.
Allianz Research also remains confident about the prospects of life insurance in Asia, which can expect annual growth of 4.9% thanks to higher interest rates on the continent.
“Wider Asia remains the growth engine, driven by the need for private provision in the face of accelerating demographic change. The smallest segment, health insurance, should remain the most dynamic, with annual growth of 6.7% (Singapore: 8.4%). Asia, in particular, still has a lot of catching up to do,” it concluded.