In 2025, the insurance industry is undergoing significant transformations and challenges. After the pandemic and amid economic uncertainty, the industry is showing steady growth but at the same time facing new risks, from the effects of climate change to rapid technological development. This report analyzes global trends in the insurance market (with a focus on the US, EU, and Asia) and separately examines the situation in Ukraine.

Experts at MIM:AGENCY have identified key trends, new challenges, technological changes, evolving customer behavior, and regulatory innovations that are shaping the face of insurance today.

Global insurance market trends in 2025

Global overview and key indicators

The global insurance market continues to grow rapidly. According to Allianz estimates, in 2024, the global insurance industry increased its premium volume by +8.6%, exceeding even the record growth of the previous year (+8.2%). The total volume of global insurance premiums reached approximately €7.0 trillion, with an increase of ~€557 billion over the year. Life insurance remained the largest segment (approximately €2.9 trillion in premiums worldwide), followed by property and liability insurance (approximately €2.4 trillion) and health insurance (over €1.6 trillion).

The main driver of growth was North America, while Europe and Asia showed more moderate growth rates. For example, in the property and casualty (P&C) segment, premiums in North America grew by +8.2% in 2024, accounting for more than half of global growth, while in Western Europe growth was +6.0%, and the Asian market grew by only +4.0%.

In contrast, life insurance saw double-digit growth: globally +10.4% in 2024, with particularly rapid sales growth in North America (+14.4% in premiums, due to a real boom in annuities against a backdrop of high interest rates) and Asia (e.g., +15.4% in China). Overall, emerging markets are gradually increasing their share, but still lag behind developed countries in terms of insurance premiums and service penetration.

Demand for insurance services is fueled by the need for financial protection in times of instability. Businesses and households around the world recognize the importance of insurance in the face of new risks. While geopolitical uncertainties and trade tensions pose threats to economic growth, they also encourage companies to pay more attention to risk management and insurance in a crisis environment.

The global insurance market is expected to continue to grow slightly faster than the economy: about +5.3% per year on average over the next 10 years – a long-term forecast that slightly exceeds the projected growth rate of global GDP.

US insurance market: growth amid new risks

The US insurance industry, the largest in the world, is experiencing conflicting trends in 2025. On the one hand, recent years have brought record premium growth in many segments. As already noted, North America has become the engine of global growth: in 2024, its contribution exceeded half of the growth in global premiums.

Life and pension insurance in the US has been growing especially fast—high interest rates have caused a real buzz in the annuity market (long-term pension insurance products), as consumers are looking to lock in attractive returns. The property insurance segment (especially commercial) experienced a period of so-called “hard market” with rising rates, which has provided insurers with high premiums and profits in recent times.

On the other hand, the US insurance market faces serious challenges, primarily related to catastrophic risks and rising costs. Natural disasters—hurricanes, floods, forest fires—have become more frequent and intense, leading to a sharp increase in insurance claims in the affected regions. Another significant challenge in the US is inflation in claims costs. Disruptions in global supply chains and trade restrictions have led to higher prices for spare parts, building materials, and repair work.

Despite these difficulties, US insurance companies are trying to adapt by innovating and changing their strategies. Key trends include:

  • The shift to personalized products and usage-based insurance. More and more auto insurers are offering policies with payments based on mileage or driving behavior (telematics insurance) to retain price-sensitive customers.
  • The development of InsurTech and digital sales channels. Traditional insurers are partnering with technology startups to improve policy issuance and claims settlement processes. Customers in the US expect to purchase insurance as easily as other online services, so the industry is investing in mobile apps, chatbots, and self-service platforms.
  • Focus on cyber insurance. The US remains the world’s largest cyber insurance market as businesses recognize the threat of cyber attacks. In 2025, demand for cyber risk insurance continues to grow at double-digit rates, although insurers are cautious about this segment due to the cumulative nature of the risk (the possibility of massive simultaneous attacks).

Thus, the US insurance market in 2025 shows a combination of high growth and sustainability challenges.

Trends in the European insurance market

The European Union and other European countries are among the largest and most developed insurance markets, and 2025 brings them their own set of opportunities and challenges. After a long period of low interest rates and moderate growth, European insurance is getting a boost from changing macroeconomic conditions. The increase in rates in 2023–2024 had a dual effect: on the one hand, it improved the return on investment for insurance companies and the attractiveness of savings products (for example, in Western Europe, life insurance premiums rose by ~7% thanks to renewed interest in long-term savings).

On the other hand, inflation increased property claims (due to more expensive repairs), which required tariff adjustments. As a result, insurance premiums in Western Europe rose significantly: for example, in 2024, +6.0% in the P&C segment. This means that the market is gradually entering a trajectory of steady growth. Analysts even expect some acceleration: in the coming years, the European property insurance segment may grow by ~4.2% per year, which is higher than previous forecasts.

The second reason is the awareness of insufficient insurance protection against natural disasters: the penetration rate of catastrophe insurance in Europe is still low (households spend only ~2.5% of their expenses on such policies, compared to ~4.4% in the US).

At the same time, European insurers face serious challenges and structural changes:

  • A tough regulatory environment. The EU is constantly improving financial market regulations. In 2024, the requirements of the new accounting standard IFRS 17 for insurance contracts came into force, which European insurers were among the first in the world to apply.
  • Climate change and catastrophic losses. Europe has already experienced several record-breaking events in 2021–2023, from floods in Germany and Belgium to abnormal heat and fires in Southern Europe.
  • Competition and consolidation. The European market is mature and saturated, with hundreds of insurers operating in many countries.

Behavioral change

European consumers of insurance services have also changed their behavior. They have become more demanding in terms of value and transparency of insurance. Many customers expect insurers to be more socially responsible and environmentally friendly—for example, by excluding investments in environmentally harmful projects and developing “green” insurance products (such as discounts on car insurance for electric vehicles). In response, large European companies (Allianz, AXA, Zurich, etc.) are adopting ESG policies, promising to achieve carbon neutrality in their investment portfolios and gradually phasing out insurance for coal and oil projects. In addition, customers are demanding digital services: although Europe traditionally has strong networks of insurance agents and bank insurance, the younger generation is increasingly buying policies online. Therefore, companies are investing in digital transformation and implementing omnichannel sales and service models. For example, in Scandinavian countries, a significant proportion of contracts are already being concluded via mobile applications, insurance aggregators (online policy supermarkets) are thriving in the UK, and across the EU, insurance companies are actively expanding the capabilities of web portals and chatbots for customers.

Thus, the European insurance market in 2025 demonstrates resilience and the ability to innovate. Moderate economic growth and increased financial literacy among the population support demand for insurance. Although the industry is burdened by strict regulation and the risks of climate change, it is responding to these challenges with innovation, from the development of new products to the introduction of uniform digital standards. European insurers realize that in a world of growing risks, conventional payouts may not be enough – customers expect proactive assistance in preventing losses and partnership in crises.

Asian insurance market: high potential and diversity

Asia is a region of contrasts in the insurance sector, with highly developed markets with rich traditions (Japan, South Korea, Singapore) coexisting with rapidly growing economies where insurance is only just gaining momentum (India, Indonesia, Vietnam, etc.). Overall, the Asian insurance market continues to expand in 2025, although the pace has slowed somewhat compared to the previous decade. According to Allianz, insurance premium growth in Asia was moderate in 2024, at only about 4% in the P&C segment, which is less than in Western Europe. However, it should be noted that this indicator is due to the slowdown in large markets.

At the same time, some countries in the region are showing double-digit premium growth. In particular, Chinese life insurance grew by more than +15% in 2024, reflecting the return of public confidence in long-term savings and active sales of investment policies.

India and Southeast Asian countries are also hot spots for growth: thanks to the development of the middle class and increased financial literacy, insurance penetration is increasing there every year. Overall, Asia (including China and Japan) already accounts for more than a third of global premiums in the life insurance segment, and this share will continue to grow.

The main long-term factor in the development of Asian markets is the low level of insurance penetration per capita, which offers great potential for further growth. For example, health insurance premiums account for less than 1% of GDP in most Asian countries (except for Taiwan).

Among the trends and challenges for Asian insurance in 2025 are:

  • Digitalization and the InsurTech revolution. Asian consumers are very open to digital services. In China and India, millions of policies are sold through smartphone apps and e-commerce platforms.
  • Regulatory reforms and market opening. Many Asian countries are updating their insurance legislation to attract foreign capital and technology.
  • New risks: natural disasters and health. The Asia-Pacific region suffers the most in the world from natural disasters such as typhoons, earthquakes, and tsunamis.

In 2025, the Asian market slowed down somewhat due to economic factors; in particular, the slowdown in China’s GDP growth affected premium volumes across the region.

New challenges and changes for the insurance industry

The global trends shaping the insurance sector in 2025 go far beyond premium figures. The industry must adapt to tectonic shifts in technology, customer behavior, regulations, and the risk landscape. Below, we look at the key challenges and changes that insurers must respond to in order to ensure continued growth and business sustainability.

Technological transformation of insurance

Technology is rapidly changing the face of the insurance business. Whereas previously digitalization was limited to the transition to electronic document management and online sales, in 2025, artificial intelligence, big data, and automation will come to the fore at virtually all stages of insurance product development. Insurers are increasingly implementing AI solutions to optimize pricing, select individual terms, and improve customer service.

In 2025, particular attention will be paid to the new generation of artificial intelligence, such as generative AI (capable of creating texts, images, or forecasts) and small language models (SLMs) trained on specific industry data. In insurance, SLMs are used, for example, to respond more effectively to narrow-profile customer requests or to help employees quickly find the information they need in internal databases.

Generative AI is being used experimentally for the automatic processing of insurance claims—models can analyze photos of property or car damage and estimate the amount of damage in a matter of seconds. All of this speeds up the settlement of insurance claims and improves the customer experience. According to consulting companies, insurers who are the first to scale successful AI cases across the entire value chain will gain a significant competitive advantage.

In addition to AI, other technologies are also impacting the industry:

  • Internet of Things (IoT). Smart devices generate data on various aspects of customers’ lives, from health (fitness bracelets) to home parameters (water leak sensors, alarms). Insurers are beginning to build proactive insurance models, where IoT data is used to prevent insurance claims. For example, insurance companies are working with customers to install security or fire sensors: if the system detects problems in advance (gas leaks, smoke), major damage can be prevented and payouts reduced.
  • Blockchain and smart contracts. Although the hype around blockchain has subsided somewhat, attempts to apply this technology in insurance continue in 2025, especially for automating payments for clearly defined events. Smart contracts on the blockchain can automatically pay compensation when a certain pre-programmed event occurs (for example, seismic sensors detect an earthquake of a specified magnitude, and the smart contract immediately pays out the policy to holders in the disaster area). Such solutions are being tested in the field of parametric insurance and reinsurance.
  • Cybersecurity and data protection. With the expansion of digital capabilities, the risks for insurers themselves are also growing. Companies are investing in strengthening cybersecurity because they hold large amounts of sensitive personal data. Regulators are also tightening requirements: new rules are being introduced that require insurers to assess and minimize algorithmic biases in AI models and ensure transparency in decision-making by artificial intelligence systems. This adds complexity to the implementation of new technologies, but in the long term should increase customer confidence in digital insurance.

Thus, technological adaptation is a necessary condition for the growth of the insurance industry. However, successful transformation requires not only the purchase of modern IT solutions, but also profound internal changes.

Changes in customer behavior and expectations

Insurance company customers in 2025 are significantly different from what they were ten years ago. The digital age and social changes are reshaping the model of insurance service consumption. Today’s customer expects more from an insurer than just a policy and compensation for losses—they value convenience, transparency, and added value at every stage. This is forcing companies to rethink their approaches to service, products, and communication with customers.

Here are some key changes in the behavior of policyholders and their expectations:

  • Digital customers and omnichannel.
  • Embedded insurance and new points of sale.
  • Increased sensitivity to price and fairness.
  • Changing socio-demographic priorities.
  • Expectations for greater value and service.

Thus, changing customer behavior is forcing the industry to shift from product-centric thinking to customer-centricity. Insurance companies that can provide a simple and transparent experience, listen to the needs of new generations of policyholders, and integrate into their digital lifestyle will have an advantage. Conversely, those who ignore these trends risk losing market share to more agile competitors or non-traditional players such as BigTech and retail chains that can offer their own insurance solutions. The year 2025 clearly defines this paradigm shift: insurance is becoming less of a policy purchase transaction and more of a continuous relationship between the customer and the insurer throughout the entire life cycle, where trust and mutual benefit are the keys to success.

Regulatory changes and the role of regulators

The regulatory environment of the insurance industry in 2025 is undergoing a phase of significant reforms aimed at increasing market stability and protecting the interests of policyholders. These changes cover both international standards and national legislative initiatives and require insurers to make significant efforts to comply with the new rules. Let’s look at the most important areas of regulatory change:

  • Climate change risks and extreme natural events.
  • Cyber risks and digital threats.
  • Pandemic and sanitary-epidemiological risks.
  • Political risks and military conflicts.
  • New products for the digital economy and sharing.

In summary, the changing world of risks requires a dynamic and innovative response from the insurance sector. An industry that has relied on proven statistics and conservative approaches for decades is now forced to become more predictive, flexible, and creative. Insurers are beginning to collaborate with scientists, technology firms, governments, and each other to develop new insurance solutions where old ones no longer work.

The Ukrainian insurance market in 2025

In 2025, the Ukrainian insurance market continues to recover from the shock caused by the 2022 war. Despite all the extraordinary circumstances, the industry is demonstrating impressive resilience and adaptability. By the end of 2023, a gradual return to pre-war volumes had already been recorded: insurance premiums for risk types are only 5% lower than in 2021 (pre-war), and for companies that are members of the relevant association, this gap has narrowed to 0.1%.

In fact, it took the industry less than two years to almost make up for its losses, which speaks to its viability. In 2024, the growth trend took hold, and 2025 saw a real upswing in the Ukrainian insurance market. In the first nine months of 2025, Ukrainian insurers collected UAH 55 billion in gross premiums, which is 44% more than in the same period of the previous year (UAH 38.4 billion).

Such growth rates have not been seen for many years; even adjusted for inflation and exchange rate fluctuations, the real increase is quite significant. About UAH 50 billion of this amount came from non-life insurance, and UAH 5 billion from life insurance. In other words, the market structure remains dominated by non-life insurance, but the life segment has also begun to revive.

Thus, in 2025, the Ukrainian insurance market appears renewed, more stable, and regulated. The industry has practically returned to its pre-war scale and even exceeds it in some segments, despite the reduction in the number of companies. Regulatory reforms have brought Ukraine closer to the European insurance space and created a foundation for further growth, both organic and through potential foreign investment and the arrival of new players once the situation in the country stabilizes.

New opportunities and growing segments in Ukraine

Although the war has caused a lot of destruction, it has also reshaped insurance needs, opening up new niches and opportunities. In a damaged economy, insurance plays an important role in supporting businesses and the population, and this role will only grow as the country rebuilds. Let’s take a look at which segments of the Ukrainian insurance market have become growth points in 2023–2025 and what new products or opportunities are emerging:

  1. Motor insurance – the market’s driving force.
  2. Medical insurance (VMI) – “demand for health.”
  3. Life insurance and savings – slow recovery with prospects.
  4. Property insurance and construction and installation risk insurance – a bright future ahead.
  5. Agricultural insurance and cargo insurance.
  6. New insurance products during the war.

Overall, the Ukrainian insurance market sees not only challenges but also new growth opportunities. Key opportunities are related to the reconstruction of the country and adaptation to post-war conditions: insurance of infrastructure projects, attracting foreign investors (who often require insurance coverage of risks), and development of social insurance (medicine, pensions) in cooperation between the state and the private sector. Ukrainian insurers, having survived the worst times, have gained valuable experience and can now offer their clients new products and services. Most importantly, insurance trust has grown among the public: although the war revealed limitations in coverage (war risks), it also showed the benefits of having a financial “cushion.”

Sources:

  1. Allianz. Global Insurance Report 2025: Rising demand for protection. Munich, May 2025
  2. McKinsey & Co. Global Insurance Report 2025: The pursuit of growth. November 2024
  3. Deloitte Insights. 2026 Global Insurance Outlook. 2025
  4. Deloitte US. Six insurance tech trends for 2025. 2024
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