The world’s 20 largest publicly listed insurers reported an average year-on-year premium growth of 6.8% in 2024, according to a new analysis by GlobalData.
This performance was attributed to higher interest rates, investment gains from equity markets, and the continued rollout of digital transformation initiatives.
Companies also benefited from expanding into underpenetrated markets and leveraging vertical integration. Among the top 20, 18 insurers recorded growth in premiums earned, with Prudential Financial and Progressive Corporation among those posting the largest increases.
Murthy Grandhi, company profiles analyst at GlobalData, noted that evolving consumer behaviour is shaping demand in the insurance sector.
“As global financial literacy continues to improve, a significant shift in consumer behaviour towards more proactive financial planning is evident. This trend is driving an increased demand for products that seamlessly integrate insurance with savings,” he said.
According to Grandhi, rising disposable incomes and the growth of the middle class are expanding the customer base for life insurance, while volatility in employment and rising healthcare costs are prompting consumers to seek more customizable insurance solutions.
Prudential Financial reported a 40% increase in premium earnings for 2024. The company attributed this growth to its group disability business, including supplemental health products, as well as higher third-party sales and increased variable life sales through its advisor network.
Progressive Corporation posted a 20.7% rise in premium earnings, which the company linked to an uptick in new personal auto insurance applications. The growth was supported by increased advertising spending and higher rates in both personal and commercial auto segments.
In contrast, Dai-ichi Life Holdings experienced a 13% decrease in earned premiums, primarily due to lower sales at The Dai-ichi Frontier Life Insurance Co Ltd.
Japan Post Holdings also reported a 9.3% decline in premiums, citing a reduction in the number of policies in force and higher short-term expenses associated with new business.
Looking ahead, Grandhi said that GlobalData expects the insurance sector to face a more complex operating environment in 2025.
“The ongoing geopolitical conflicts, such as the war in Ukraine and rising tensions in the Middle East are likely to escalate political risk exposure and disrupt global reinsurance capacity,” he said.
Grandhi also pointed to the potential impact of trade frictions and tariff escalations, which may affect investment sentiment and increase supply chain risks, prompting insurers to reassess their risk pricing models.
Inflation is expected to remain a challenge, particularly for motor and property insurance, likely resulting in continued premium rate increases.
Grandhi noted that insurers will face heightened scrutiny of their cybersecurity readiness following recent attacks that exposed systemic vulnerabilities.
He also said that regulatory tightening across jurisdictions is anticipated to raise compliance costs, but may also promote improved transparency and consumer trust.
Grandhi concluded that demographic changes, especially population aging, will sustain long-term demand for health, life, and retirement products.
“Insurers that maintain diversified portfolios, robust digital capabilities, and geographic breadth will be better positioned to navigate these challenges and seize growth opportunities in emerging markets,” he said.
In the Asia-Pacific region, Fitch Ratings has maintained a neutral outlook for the insurance sector in 2025, citing stable capital adequacy and earnings resilience despite ongoing market volatility and regulatory reform.
Life insurers in several APAC countries are adopting more conservative investment strategies, while general insurers are focusing on cost controls and operational efficiency.
However, Fitch revised its outlook for the life insurance sectors in China and Taiwan to deteriorating, citing increased exposure to both domestic and external pressures.
