US Dominates Global Insurance, But India, China Could Change That In A Decade, Says Allianz Report

The US remains the powerhouse of the world insurance industry, collecting almost 48 per cent of total global insurance premiums in 2024, according to the Allianz Global Insurance Report 2025. Across both life and general insurance, including health, property and casualty (P&C) segments, the US is the largest and most dominant player in the insurance world, the report said.

US Leads Insurance Sector

The study said that insurance companies in North America generated premium income of more than €3,210 billion in 2024, with the US covering the vast majority of this. China, the second largest insurance market, produced €754 billion in premiums compared to this. According to the report, the US accounts for more than four times the premium income when compared to China. Even when aggregating the whole of the Asian market, including its fast-growing economies such as South Korea and Japan, the continent is still behind North America.

 This supremacy is evident in all of the large insurance segments. In health insurance, for instance, the US holds almost two-thirds of the world market. In life insurance, families in the US moved quickly to secure annuity rates in 2024, as interest rates were at a peak.

Reasons Behind the US Supremacy

There are several main reasons that the US remains the global leader in insurance, according to the report.

1. Higher Incomes and Financial Literacy: American consumers enjoy higher average incomes and greater comfort with the use of insurance products for protection and investment.

2. Dominance by Private Sector: In contrast to most other nations with robust public safety nets, the US is substantially dependent on private insurance for health, retirement, and property protection.

3. Mature Capital Markets: The US boasts of deep, highly-developed capital markets that insurers use to invest and build reserves.

Together, these have created the US as a giant in underwriting and investing—two of the basic activities of insurance companies.

Rising Challenges From Asia

The Allianz report also indicates increasing momentum in Asia. While 47.9 per cent of global insurance premiums came from North America in 2024, it is expected to decline slightly to 45.3 per cent by 2035. Simultaneously, Asia’s share is expected to increase steadily, driven by nations such as China and India, driven by a range of factors, including rising trade tensions, decline in global confidence in US financial systems, and altering capital flows.

India’s life insurance industry, for instance, is expanding at a rate of more than 10.5 per cent annually and is expected to be the second-largest life market in Asia by 2035. China, also, is further increasing its presence in both life and P&C categories.

The report says that although the US is bound to be the biggest market in terms of absolute numbers, premium growth share will increasingly move towards Asia. This is driven by increasing incomes, under-penetrated markets, and digital distribution models.

Geopolitical Risks May Erode Trust In US Insurance Dominance

The report also warns of structural threats to US hegemony. The recent trade war between the US and China, unstable monetary policy, and declining global confidence in the dollar were compelling other blocs to diversify their investments.

Certain Asian and Latin American central banks are progressively limiting their exposure to US assets. This may lower the appeal of the US as a destination for international capital, potentially influencing the investment tactics of big insurers, the report said, adding that the weaponisation of financial instruments, like sanctions and asset confiscation, has added uncertainty to multinational companies, including insurers.

A Shift, Not a Collapse

While the US will not lose its position at the head of the list anytime soon, the growth in insurance globally is obviously shifting towards Asia. North America will remain dominant in terms of sheer size, but its relative strength could fall as newer markets mature.