Overview of the Allianz Research Global Insurance Report 2025
The Allianz Research Global Insurance Report 2025 provides an in-depth analysis of worldwide insurance market trends. The report reveals that the global insurance sector experienced an 8.6% growth in 2024, surpassing the previous year’s growth rate of 8.2%. Insurance companies’ total premium revenue increased by 557 billion euros, reaching an impressive 7 trillion euros. Life insurance remains the dominant branch with premium income of €2.9 billion, followed by elementary insurance (€2.4 billion) and health insurance (€1.6 billion).
Increasing Demand for Life and Health Insurance Globally
The report highlights a 7.7% increase in life and health insurance demand in the past year. North America contributed significantly to this growth, accounting for over half of the global premium production. Western Europe saw a 6% rise in premium income, whereas Asia experienced a slower 4% growth. In terms of life insurance, a 10.4% growth rate was recorded, overtaking the 8.2% growth in 2023. North America led this surge with a 14.4% growth rate. While elementary insurance dominates the U.S. market, life insurance is more evenly distributed globally, with Asia leading this segment, contributing over a third of the premiums.
The demand for health insurance witnessed a 7% growth worldwide, particularly strong in Asia with a 12.6% increase, indicating low insurance penetration in the region, remaining below 1% in most markets except Taiwan.
Geopolitical uncertainties, trade tensions, and economic challenges pose risks to global insurance figures. Yet, these uncertainties heighten the need for risk management solutions, driving up the demand for protection.
Turkish Insurance Sector: A Leading Market in the Region
The report underscores Turkey’s insurance sector’s resilience, outpacing inflation (around 60% in 2024) with a 72% rise in premium production, totaling 22.8 billion euros by year-end. This impressive performance is attributed to growth across all segments. The Turkish insurance sector grew by 68% overall, with life insurance up by 76% and health insurance by 90%. Despite a slowdown compared to the previous year, Turkey remains one of the most developed markets in the region. Insurance penetration in Turkey stands at 2.8%, exceeding the regional average of 2.2%. Notably, health insurance premium income (€3.6 billion) surpasses life insurance (€2.7 billion), indicating untapped potential in the life insurance market, with a penetration rate of just 0.3%.
Global Demand for Protection on the Rise
Projected growth for the global insurance industry is set at an annual average of 5.3% over the next decade, slightly above economic growth. In Turkey, the sector is expected to expand by 13.7% (nominal GDP: 12.7%). The elementary insurance segment is anticipated to grow by 4.5% globally and 12.9% in Turkey until 2035. The increasing need for protection worldwide predicts strong growth across various markets. Allianz Research forecasts a 5% annual growth in the life insurance sector, driven by high interest rates. The Asian and Chinese markets will continue to propel this growth, given the private sector’s role in addressing demographic changes. In Turkey, life insurance is expected to grow by over 12%. Health insurance, the smallest branch, is projected to remain the most dynamic segment, with global growth forecasted at 6.7% and 17.8% in Turkey. The Asian market, in particular, holds significant growth potential.
Challenges and Collaborative Solutions for the Insurance Industry
Ludovic Subran, Chief Economist at Allianz, emphasizes the ongoing growth of the insurance sector, primarily driven by idle policies. “Inadequate investments in compliance exacerbate losses due to the climate crisis, while delays in pension reforms compel individuals to save more. In the long run, the private insurance sector alone cannot sustain its role as society’s ‘restorer.’ Collaborative efforts are essential to overcoming the profound challenges of ‘mutual transformation.'”
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