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INSURANCE | 11.13.2025

Life and Non-Life insurance premiums expected to grow through 2027

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The insurance industry is set to perform strongly in 2025 and 2026, supported by a resilient economic backdrop, improved financing conditions in major markets, and a well-contained inflation environment. These are the projections outlined by MAPFRE Economics, MAPFRE’s research arm, in its report Economic and Industry Outlook 2025: Fourth-Quarter Update.

The improvement in global economic conditions throughout 2024 and 2025 is expected to be a determining factor in the insurance industry’s performance. In fact, MAPFRE Economics has revised its forecast for global growth upward by 0.2 percentage points, now projecting 3.1%. The baseline scenario presented in this report continues to reflect the central idea of a cyclical slowdown and moderating inflationary pressures, with the impact of tariffs expected to remain limited in 2025 and become more evident the following year.

“The insurance industry continues to demonstrate its ability to adapt to the new environment of geopolitical uncertainty, which appears to be easing, with growth in insurance activity levels revised slightly upward,” the report notes.

As a result, Non-Life insurance premiums are expected to rise by 5.4% globally this year and 5.6% in 2026, while Life insurance premiums are projected to increase by 6.2% in 2025 and 6.5% in 2026.

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“Despite the gradual decline in market risk-free interest rates, more stable yield curves offering positive term premiums and rates above inflation expectations will continue to support the growth of savings-linked Life insurance and investment products. Strong equity market performance will further boost this growth, with major global indexes continuing to reach historic highs,” the report states.

Reinsurance

Reinsurance continues to demonstrate a strong financial position this year. According to MAPFRE Economics, reinsurance contract renewals in January 2025 showed improvements in both pricing and terms, reflecting sufficient capacity and a stabilization of rates for environmental catastrophe risk reinsurance.

Meanwhile, insured losses from natural disasters are expected to continue growing at a sustained annual rate of 5% to 7% in real terms, reaching significant levels. This outlook underscores the need for the insurance industry to keep proactively adapting to extraordinary risks and the challenges posed by climate change.

 

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