The Allianz Group has released its “Global Insurance Report,” analyzing developments and trends in the global insurance industry. The report indicates that while the growth of the global insurance market is slowing back to normal levels after a period of strong expansion, the industry still shows strong long-term growth potential.

Ludovic Sebr?n, Chief Economist and Investment Officer of the Allianz Group, revealed that geopolitical fragmentation is altering the fundamental assumptions that have guided the global economy for decades. As trade, capital, and regulations become more fragmented, rapid adaptation to risk is replacing maximizing efficiency as a key principle of the global economy. This shift increases the cost and complexity of doing business, pushing access to insurance to an even greater level of importance, because ultimately, insurance plays a role beyond just risk management. But it is also a key mechanism for supporting investment, innovation, and economic confidence.

The “Global Insurance Report” indicates that the global insurance industry in 2025 has a total premium value of approximately €6.99 trillion (265.27 trillion baht), growing by +7.1% or an increase of around €456 billion (17.31 trillion baht). Although this is a slowdown from the +9.4% growth in 2024, it is still higher than the average compound annual growth (CAGR) over the past 10 years, which is at +5.6%, reflecting that the main drivers of the industry remain strong. Life insurance remains the largest market, with a value of €2.861 trillion (108.59 trillion baht), followed by property and casualty (P&C) insurance at €2.320 trillion and health insurance at €1.688 trillion (64.06 trillion baht).

The global property and casualty insurance market is beginning to return to normalcy. Following a period of premium increases, the global non-life insurance market is projected to grow by +3.8% in 2025, down from +8.5% in the previous year, as claims pricing begins to stabilize. North America remains the dominant market, accounting for 52% of global non-life insurance premiums, although its growth rate has slowed significantly from +9.7% to +2.2%. Western Europe continues to show relatively strong growth at +5.3%, while Asia grows at +4.0%.

The global life insurance market continues to expand well at +6.9%, although this is down from +11.3% in 2024. The impetus from North America is slowing due to declining popularity of annuity products. Asia has once again become a key global growth engine, with Asian life insurance premiums growing at +9.9% and China experiencing a particularly strong growth of +11.4%, driven by aging societies, high savings rates, and insufficient public pension coverage.

Health insurance is the most structurally dominant business segment, with global health insurance premiums growing by +12.3%, the highest since 2014, driven by pressures from healthcare costs, aging societies, and limitations of public healthcare systems. Particularly in the US, which accounts for over 70% of global health insurance premiums, even as post-COVID demand begins to return to normal, Asia still has high growth potential due to health insurance penetration rates in many countries remaining below 1%.

The report also points out that geopolitical tensions and economic polarization are becoming key factors shaping the global insurance industry, as the increasingly complex risk environment impacts cross-border business models and reduces the effectiveness of traditional risk diversification. At the same time, it opens up new opportunities for the insurance business through the demand for protection, economic resilience, and specialized products such as infrastructure, energy, and political risk insurance.

In Thailand, health insurance shows strong growth, supporting the overall market. The Thai insurance market is projected to grow by +3.1% in 2025, with total premium income reaching €26.2 billion (994 billion baht). Non-life insurance grew by only +0.5%, and life insurance by +1.9%, while health insurance was the most prominent, growing by +13.1%, reflecting the increased demand for additional health coverage from the private sector amidst an aging society and pressures on public healthcare systems.

Insurance remains a business of the future in the long term. A report by the Allianz Group forecasts that the global insurance market will grow at an average rate of +5.3% per year over the next 10 years, outpacing overall global economic growth. Thailand's insurance is expected to grow at an average rate of +4.8% per year, exceeding GDP growth of +4.1%, driven by an aging society, increased healthcare demand, and the impacts of climate change.

The global property and casualty insurance market is projected to grow at an average rate of +4.7% per year, while Thailand's is expected to grow at +4.5%, driven by rising global demand for protection. Global life insurance is projected to grow at an average rate of +4.9% per year, while Thailand's is expected to grow at +3.6%, with Asia remaining a key driver. Health insurance will continue to be the fastest-growing segment, at +6.7% per year globally and +8.6% in Thailand.

In terms of value, the global insurance market is projected to add over €5.26 trillion (199.62 trillion baht) over the next 10 years, with more than half of new premiums expected to come from Asia, reflecting the shifting center of the global insurance market towards the East.

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