The 2025 global insurance outlook is characterized by a general trend toward market softening and robust growth prospects, though with important nuances by region and line of business:

Market Softening

• Property insurance rates are expected to continue the softening trend from 2024 into 2025, especially for accounts with favorable loss histories and low exposure to catastrophes. Increased competition and new capacity are driving this softening, though volatility remains for catastrophe-exposed and high-claims accounts.

• Cyber insurance is experiencing flat to modest rate reductions for well-managed risks, though some buyers may see slight increases as the market stabilizes. Competition, especially from insure-techs, is influencing pricing and terms.

• Non-life insurance (P&C) is projected to see more moderate growth due to this general market softening and slower rate increases, though select lines (notably U.S. casualty and auto) remain challenging due to adverse loss trends and ongoing litigation pressures.

Growth Prospects

• The global insurance market grew by 8.6% in 2024 and is expected to grow at an annual rate of 5.3% over the next decade, outpacing global economic output. The total global premium pool reached EUR 7.0 trillion, with life insurance as the largest segment, followed by P&C and health insurance.

• Life insurance is expected to maintain strong growth (annual growth of 5.0%), fueled by higher interest rates and demographic shifts, especially in Asia and China, which are seen as key growth engines.

• Health insurance remains the most dynamic segment, with annual growth projected at 6.7%, primarily driven by the U.S. and Asian markets.

• P&C insurance will see solid growth globally (annual growth of 4.5% up to 2035), with North America accounting for about 40% of additional premiums in this segment.

Regional Highlights

• North America remains the largest market and continues to drive global premium growth, especially in P&C.

• Europe is expected to see increased demand for insurance, particularly in P&C, due to rising infrastructure investment and climate-related risks. The insurance penetration rate is still lower than in the U.S., indicating room for growth.

• Asia and China are forecast to generate more than half of the additional global premium pool over the next decade, especially in life and health insurance.

Risks and Challenges

• Economic headwinds such as slowing global growth, trade tensions, and rising debt are creating risks for insurers’ balance sheets and asset valuations.

• Natural catastrophes and climate-related claims continue to impact property markets, especially in catastrophe-prone regions, potentially slowing or reversing softening trends in those areas.

• Regulatory scrutiny and evolving customer expectations are prompting insurers to innovate and adapt, with advanced technology and data strategies becoming essential for growth and resilience.

In summary, the global insurance market in 2025 is experiencing a period of stability and softening in many segments, with strong growth prospects driven by rising demand for protection, especially in life and health lines. However, challenges remain in certain sectors and regions, particularly those exposed to catastrophe risks and adverse loss trends