Global insurance sector grew 7.5% last year, Allianz report shows

Written by Michael Griffiths

24/05/2024

The global insurance industry grew by 7.5% in 2023, a new report published by Allianz has revealed.

This was the fastest rate since the era before the 2008 global financial crisis, as insurers amassed €6.2trn in premiums across life (€2.6trn), property and casualty (P&C) (€2.2trn), and health (€1.4trn) segments.

However, Allianz did also state that high inflation contributed decisively to these gains, and that the real growth rate has been a more modest 0.7% since 2020.

“Unlike 2022, where growth was primarily driven by the P&C segment, 2023 saw more balanced growth,” Allianz stated.

“The life segment led the charge, contributing 46.9% of the total increase, with P&C and health following at 32.7% and 20.4%, respectively. Notably, the life segment rebounded significantly, driven by Asia, the world’s largest life market.”

Asia held a 39.0% global share in the life insurance market during 2023 as premiums grew by 14.9%.

China led with a 12.8% increase ahead of Western Europe, the second largest market, which grew by 3.3%, despite challenges in Germany and Italy. North America saw steady growth at 5.3% in the life sector.

Other markets, with a 4.3% global share, accelerated to 9.9% growth, driven by nearly 20% growth in Latin America.

Allianz has suggested the global insurance market will maintain a steady growth rate of 5.5% annually over the next decade, matching the growth rate of the global GDP. The group has forecast the life sector’s growth to accelerate to 5.1% annual growth, buoyed by higher interest rates.

“Asia will remain the powerhouse of growth in the life insurance sector, accounting for half of the absolute premium growth,” the Allianz report also suggested. “China will continue to lead, but India is poised to be the true growth champion with an expected annual growth rate of 13.6%.”

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