The latest Global Insurance Report from Allianz has revealed that Asia will be the life insurance industry's principal growth engine.
According to the report, the global insurance industry is estimated to have grown by 7.1% to EUR6.9tn ($7.9tn) in 2025, adding EUR456bn 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 (EUR2,861bn), followed by P&C (EUR2,320bn) and health (EUR1,688bn).
India and China drive life insurance premiums
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.
Asia remains the world's largest life insurance market, supported by demographic ageing, 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 on high growth trajectory
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 ageing 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 normalisation 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.
Singapore: Broad-based double-digit growth underscores hub strength
The Singapore insurance market recorded strong growth of 10.7% in 2025, with total premium income rising to EUR39.7bn. P&C insurance premiums 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.
Outlook: Insurance remains a growth industry
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. Allianz Research also remains confident about life insurance, which can expect annual growth of 4.9% thanks to higher interest rates (Singapore: 5.5%). 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.