‘Insurance remains a growth industry – however, this growth is largely fuelled by policy inaction,’ says chief economist
The UK insurance market has recorded “a more normal growth” rate of 3.2% in 2024 following record-high growth of 13.8% in 2023, driven by premium increases and high interest rates.
This is according to the latest Global Insurance Report 2025, published on 27 May 2025 by insurer Allianz. This research analysed year-on-year developments in various insurance markets worldwide.
It found that the UK insurance market remains the largest in Europe, with its total premiums amounting to €407bn (£348bn) for 2024, compared to €394bn (£337bn) in 2023.
Allianz predicted that premiums in the UK insurance market would amount to €572bn (£489bn) by 2035, with a compound interest growth rate of 3.1% over the next 10 years.
Meanwhile, the property and casualty (P&C) sector’s growth specifically has settled after a “bumper” year in 2023, Allianz continued – the P&C market’s growth rate has fallen from 14.8% in 2023 to 5.4% last year.
Growth
Ludovic Subran, chief economist at Allianz, said: “Insurance remains a growth industry – however, this growth is largely fuelled by policy inaction.
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”Underinvestment in adaptation is leading to increasing climate damage, while delayed pension reforms are requiring higher savings efforts from individuals.
“In the long term, the private insurance industry cannot shoulder the burden of acting as society’s ‘repair shop’.”
With a range of freelance experience, Harriet has contributed to regional news coverage in London and Sheffield, as well as music and entertainment reporting across various publications.View full Profile
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