The Allianz Group is one of the world's leading insurers and asset managers with around 125 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 741 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.8 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2023, over 157,000 employees achieved total business volume of 161.7 billion euros and an operating profit of 14.7 billion euros for the group.
Allianz Global Insurance Report:
Navigating growth and challenges in a rapidly changing world
2023: A year of significant growth
In 2023, the global insurance industry grew by an impressive 7.5%, the fastest rate since the pre-Global Financial Crisis (GFC) era. Insurers worldwide amassed EUR 6.2 trillion in premiums across life (EUR 2,620 billion), property and casualty (P&C) (EUR 2,153 billion), and health (EUR 1,427 billion) segments. However, high inflation contributed decisively to these gains, the real growth rate has been a modest 0.7% since 2020.
Unlike 2022, where growth was primarily driven by the P&C segment, 2023 saw more balanced growth. 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.
Life insurance
Asia played a key role in the recovery of the life insurance market, with the region holding a 39.0% global share and premiums growing by 14.9%. China led with a 12.8% increase. Western Europe, the second-largest market, grew by 3.3%, despite challenges in Germany and Italy. North America saw steady growth at 5.3%. Other markets, with a 4.3% global share, accelerated to 9.9% growth, driven by nearly 20% growth in Latin America.
Property and Casualty (P&C) insurance
The P&C segment grew globally by 7.1 %. North America, primarily the U.S., remained the largest market with a 54.2% share. Western Europe saw a 4.5% increase, led by Germany at 6.8%. Asia's P&C market grew by 5.3%, with China at the forefront. Other markets, holding a 7.9% global share, saw nearly 19% growth, driven by significant inflation-related increases in Eastern Europe and Latin America.
Health insurance
The U.S. continued to dominate the health insurance sector, accounting for around two-thirds of global premium income. The sector grew by 6.6%, normalizing after the COVID-19 pandemic significantly boosted demand in prior years.
Unlike many industries where emerging markets are taking over, the U.S. market remains dominant in the global insurance landscape. Western Europe and Japan lost ground, while China nearly doubled its share. Although the U.S. leads significantly in P&C and health insurance, it trails Asia in life insurance. Western Europe lags behind in all segments.
Unlike many industries where emerging markets are taking over, the U.S. market remains dominant in the global insurance landscape. Western Europe and Japan lost ground, while China nearly doubled its share. Although the U.S. leads significantly in P&C and health insurance, it trails Asia in life insurance. Western Europe lags behind in all segments.
Looking ahead: The next decade
The global insurance market is expected to maintain a steady growth rate of 5.5% annually over the next decade, matching the growth rate of the global GDP. However, the dynamics within the industry will shift:
- P&C: Expected to grow by 4.7% annually, after 5.0% annual growth in the past decade, as inflation-related price increases slow down.
- Health: Will continue growth at 7.3% annually, although a bit slower.
- Life: Anticipated 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. China will continue to lead, but India is poised to be the true growth champion with an expected annual growth rate of 13.6%.
The impact of global changes and AI: Testing the limits of insurability
The insurance industry is navigating a rapidly changing world marked by geopolitical fragmentation, economic volatility, and the accelerating impacts of climate change. The increasing frequency and severity of natural disasters underscore the growing risks and the challenges of maintaining insurability. The balance between affordability and insurability—or more broadly, between our current and sustainable lifestyles—can still be achieved, but the required compromises will come with costs and challenges. As Ludovic Subran, Allianz’s Chief Economist, notes, “An uninsurable world would be not only a world that failed to cope with climate change but also a metaphor for a collective ethical failure where each individual dodges their moral obligation to reduce carbon emissions.”
Artificial Intelligence (AI) is set to revolutionize the insurance industry. AI's ability to process vast amounts of data will enable more personalized and efficient services, reducing protection gaps and enhancing affordability and accessibility. “AI is not a magic bullet to solve all problems,” cautions Patricia Pelayo Romero, co-author of the report. “But it has significant potential to help reduce protection gaps by improving the availability, affordability, and accessibility of insurance thanks to increased personalization and improved cost-efficiency.”
Navigating the challenges and embracing opportunities
Despite the promising outlook, the insurance industry must stay vigilant against rising risks. Increasing risks call for more Public-Private Partnerships (PPPs). The design of these PPPs is crucial: Will the state act as a safety net while the market remains private and competitive, or will it lead by setting prices and deductions, making the market operate more like a utility? Arne Holzhausen, co-author of the report, emphasizes, “The biggest challenge for the industry is defending its relevance against an ever more intrusive state. Increasing polarization and inequality threaten to undermine the social fabric. How to navigate these challenges, maintaining its social relevance as a force for equality and unity, is the central task of the insurance industry in the coming years.”
To stay relevant, insurers must broaden their value propositions, focusing on comprehensive solutions for risk reduction and avoidance. Embracing AI and other new technologies will be crucial in enhancing efficiency and customer satisfaction.
You can explore the report in-depth here.
Further information
About Allianz
* Including non-consolidated entities with Allianz customers.
** As of June 30, 2024.
** As of June 30, 2024.
Cautionary note regarding forward-looking statements
As with all content published on this site, these statements are subject to our cautionary note regarding forward-looking statements:
