Insurance Report

Allianz Global Insurance Report 2025: Rising demand for protection

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The global insurance industry has entered a critical phase marked by economic uncertainty, climate risks, digital transformation, and evolving customer expectations. The 2025 Global Insurance Report provides in-depth insights into the current state of the industry, identifies strategic challenges, and maps out future growth opportunities.

1. Economic Outlook and Macroeconomic Pressures

Global economic conditions are weighing heavily on insurers. High inflation, tightening interest rates, and geopolitical tensions continue to impact financial markets and investment returns. Insurers are cautiously optimistic about improving macroeconomic conditions in the medium term, but they remain vigilant due to lingering volatility. Rising reinsurance costs and increased claims inflation—particularly in property, motor, and health segments—are also straining underwriting margins.

Despite these challenges, interest rate normalization has allowed life insurers to offer more attractive returns on savings products. This shift has sparked renewed interest in guaranteed return life policies, particularly in Europe and North America.

2. Performance Across Insurance Segments

a. Life Insurance

The life insurance sector has rebounded due to better investment yields and renewed demand for protection and retirement products. While sales of annuities and unit-linked products remain moderate, demand for guaranteed return products is accelerating. Digital channels, especially mobile apps and aggregators, are gaining prominence for policy purchases.

b. Property and Casualty (P&C) Insurance