Life insurance premiums forecast to grow by 3% yearly until 2026

Global life insurance premiums are expected to rise to $4.8t by 2035.  

Global life insurance premiums are projected to grow at an annual rate of 3% in 2025 and 2026, more than double the growth rate of the past decade, according to Swiss Re's latest sigma report, "Growth in the Shadow of (Geo-)Politics." 

Rising real wages, elevated interest rates, ageing populations, and an expanding middle class in emerging markets are key drivers of this growth.  

Swiss Re CEO of Life & Health Reinsurance, Paul Murray, said in a release that higher interest rates and the retirement of baby boomers are reinvigorating the insurance savings market. 

Global life insurance premiums are expected to rise from $3.1t in 2024 to $4.8t by 2035.  

The report highlights strong demand for savings products, particularly in the US and China. US individual annuity sales are forecast to surpass $400b in 2024, compared to a ten-year average of $234b. In China, reductions in guaranteed interest rates have boosted sales of long-term savings products, a trend expected to persist.  

In Europe, unit-linked insurance sales are growing, especially in Italy and France. 

This trend is anticipated to spread to the US and other markets as central banks lower interest rates. Consumers in advanced economies are also shifting from fixed annuities to index-linked policies tied to financial indices.  

The 2024 US election could deepen differences in global economic trajectories, influencing growth, inflation, and central bank policies.

China’s economy is projected to decelerate further, with GDP growth expected at 4.6% in 2025 and 4.1% in 2026. Recent stimulus measures may bolster short-term confidence but are unlikely to address structural challenges.