Image credit: Allianz

Allianz released the Global Insurance Report 2024, which addresses trends and developments in the global insurance market.

The report indicates that the global insurance industry witnessed a remarkable growth of 7.5% in 2023, the highest rate since 2006. Insurance companies around the world collected €6.2 trillion in insurance premiums, distributed across life (€2.6 trillion), and property and casualty (€2.6 trillion). 2.2 trillion euros), and health insurance (1.4 trillion euros). This represents a significant increase of €1.1 trillion, or 21.5%, over the past three years. However, due to high inflation, real premium growth has been modest, with a rise of just 0.7% since 2020.

In 2023, premium growth was more evenly distributed across sectors compared to 2022. Life insurance saw an increase of 8.4%, property and casualty insurance grew by 7.1%, and health insurance rose by 6.6%. It is worth noting that the life insurance sector, which grew by only 3.1% in 2022, rose mainly due to the significant growth achieved by Asia of 14.9% last year.

Dominance of the American market

Unlike other sectors where emerging markets are gaining importance, the United States remains the dominant player in the global insurance market. Over the past decade, the United States has increased its market share from 41.3% to 44.2%. Conversely, Western Europe and Japan saw their market share decline, while China nearly doubled its share to 10.6%.

Market dynamics in the UK

The UK insurance market saw a 4.6% increase in premium income in 2023, reaching a total of €332 billion, maintaining its position as the largest market in Europe. The Property & Casualty segment was the main driver of growth, posting a 9.6% increase, partly due to higher prices.

Meanwhile, the life insurance sector grew by about 3%, affected by cost of living pressures. Health insurance also saw a rise of 6.6%, but remains a niche market with less than 3% of total premiums. The UK market is expected to grow annually by 3.4% over the next decade as inflation stabilizes.

Expected growth

More broadly, the global insurance market is expected to grow at an annual rate of 5.5% over the next decade, in line with global GDP growth. The property and casualty sector is expected to witness annual growth of 4.7%, health insurance 7.3%, and life insurance 5.1%, benefiting from higher interest rates. Total global premiums are expected to rise by approximately €5 trillion, with the life insurance sector accounting for the largest share.

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