Asia’s insurance markets showed impressive growth in 2024, especially in the life and health sectors, yet they continue to trail behind North America and Western Europe in overall scale and performance—particularly within the property and casualty (P&C) arena. Globally, the insurance industry expanded by a robust 8.6%, reaching a staggering $7.87 trillion (EUR 7.0 trillion) in total premiums.

China: The Star of Life Insurance Recovery

China emerged as a powerhouse in Asia’s life insurance sectors, boasting a remarkable growth rate of 15.4%. This trend outshines the 7.1% increase seen in Western Europe and propelled the global life segment’s overall growth to 10.4%. Driving this surge were higher interest rates, which effectively bolstered premium incomes across markets.

Health Insurance Booms Amidst Low Penetration

The demand for health insurance in Asia also proved strong, with premiums soaring by 12.6% in 2024. Low penetration rates—below 1% in most nations except Taiwan—and limited public healthcare coverage contribute to this upward trajectory. Meanwhile, the US holds its ground by dominating the global health insurance market, accounting for approximately two-thirds of worldwide premiums.

Challenges in Property and Casualty Insurance

While Asia’s life and health sectors exhibit clear growth potential, the sluggish development of P&C insurance restricts the region’s overall impact on global premium expansion. The term “growth markets” is increasingly put to the test as North America surpasses Asia in key sectors, despite having a smaller population.

Future Outlook: A Double-Edged Sword

Looking ahead, economic challenges may pose risks to the regional outlook. Diverging inflation trends and capital market volatility are likely to affect insurer portfolios and strategic planning throughout Asia. As global insurance growth continues to rise, Asia must seize the opportunity to enhance penetration and strengthen its P&C performance to keep pace with its more developed counterparts. Who knows, perhaps the region will surprise us all and redefine what “growth market” truly means!

Questions & Answers

What contributed to China’s impressive life insurance growth?
Higher interest rates bolstered premium income, leading to a remarkable growth rate of 15.4%.

How does Asia’s health insurance market compare to that of the US?
Asia’s health insurance premiums rose by 12.6%, but the US dominates globally, accounting for around two-thirds of total premiums.

What challenges does Asia face in the property and casualty insurance sector?
Slower development in P&C insurance constrains Asia’s overall contribution to global premium growth, despite significant advancements in life and health segments.