Life remains largest insurance segment, P&C sees most growth
Total global insurance premium income amounted to nearly €5.6 trillion last year, according to a new report by Allianz Trade.
Life remained the largest insurance segment at €2.6 trillion, followed by property-casualty (€1.8 trillion) and health (€1.1 trillion). The premium pool grew by 4.9%, or €259 billion, amid a global inflation rate of 8.6%, Allianz Trade said.
The three segments fared quite differently when it came to growth. While P&C grew at a robust 8.7%, health grew by a more modest 4.9%. The life insurance market grew only 2.4% as households felt the squeeze of inflation on their incomes.
The rise in P&C premiums was driven by all regions of the world. However, more than half (€77.5 billion) of last year’s global increase came from North America alone. With premium income of €860 billion, North America remains the largest market in the world by a significant margin, Allianz Trade said.
Asia also saw significant growth of 8.4% (€31 billion) last year. With total premium income of almost €403 billion, Asia overtook Europe for the first time last year.
Life insurance sector woes
While P&C enjoyed robust growth, the life insurance market took a hit last year, particularly in Western Europe, where premium income fell by almost 3% (€22 billion) to €740 billion in 2022.
Sector growth was also disappointing in Asia, with an increase of only 3% (€33 billion) to €925 billion.
As with the P&C sector, North America was the main growth driver for the life insurance segment last year, adding €61 billion in new premiums – a growth of 7.8% to €840 billion. North American dominance was even clearer in the health sector, where the US accounts for about two thirds of global premium income.
North American dominance
North America – and specifically the US, which accounts for 94% of the region’s premium pool – has dominated the global insurance market over the last decade, Allianz Trade reported.
More than half of the increase in global premium income in P&C and health was generated in North America. In the life segment, the North American share is still slightly below a third, with Asia dominating that market.
As a result, the region’s global share rose from 39.6% in 2012 to 43.9% in 2022, Allianz Trade reported.
That’s in direct contrast to Western Europe, which tumbled more than six percentage points to 23.8%.
Japan fell 3.7 percentage points to 5.5%, while China nearly doubled its global share to 11.4%.
Inflation continues to bite
Navigating the inflationary environment will be the industry’s biggest economic challenge over the coming years, Allianz Trade reported.
Still, premiums are predicted to increase by 5.2%pa over the next decade, adding €4,190 billion to the global premium pool. In 2033, premium income is projected to hit €4.3 trillion in life, €3.1 trillion in P&C and €2.3 trillion in health.
Have something to say about this story? Let us know in the comments below.
Keep up with the latest news and events
Join our mailing list, it’s free!