On 10 December, the OECD published its 2025 edition of its Global Insurance Market Trends, which provides an overview and assessment of developments in the insurance industry in 2024 across 67 jurisdictions, including all OECD countries and key non-OECD markets.
The report highlights the following findings:
- Insurance penetration rebounded but remained lower than it was 10 years ago: Total insurance penetration (gross premiums as a % of GDP) increased in 2024, reversing several years of decline. However, it remains below the level of a decade ago. The life sector drove both the earlier decline and the recent rebound, while non-life penetration remained stable.
- Non-life sector showed improved underwriting profitability: Non-life premiums grew by 8.2% in nominal terms (4.2% real), outpacing claims growth (7.5% nominal, 3.5% real). This led to underwriting profits in nearly all reporting jurisdictions. Additionally, the report notes that reinsurers also benefited from the positive underwriting performance of non-life insurers.
- Life sector savings products showed increased growth in premiums: Life insurance premiums rose by an average of 11.9% in nominal terms, nearly double the previous year’s growth, driven by high interest rates and strong equity markets. Claims payouts in the life sector grew more slowly than in 2023.
- Investment Performance and Profitability: The report highlights the favourable market environment as an enable in which insurers recorded improved investment returns in 2024. This, combined with positive underwriting performance, led to stronger overall profitability and increased shareholder equity across most markets.
- Risks and Vulnerabilities: Macroeconomic risks (i.e. inflation and interest rate volatility), disaster risks, and cyber risks were most frequently cited by reporting national authorities as key vulnerabilities for the sector. Financial market volatility and regulatory changes also remain areas of concern.
Insurance Europe