According to OECD data, total insurance penetration was 6.2 percent of the Gross Domestic Product (GDP) in OECD countries in 2024, and increased to 6.6 percent in 2025. In non-OECD countries that report data, the rate increased from 3.7 percent to 4.2 percent in the same period.
While life insurance penetration in OECD countries has declined to a limited extent in the last 10 years, non-life insurance has grown. In countries outside the OECD, life insurance penetration increased, while non-life insurance penetration generally remained stable.
The structure of insurance markets differed from country to country. While life insurance gained importance in some countries, non-life insurance branches constituted the majority of activities in some markets.
The difference between income groups also attracted attention. In 2025, total insurance penetration remained at 0.7 percent of GDP in lower-middle-income countries and reached 6.7 percent in high-income countries. It was stated that this difference was largely due to the divergence in life insurance penetration.
REAL INCREASE IN NON-LIFE INSURANCE PREMIUMS CONTINUED
Premium increases in non-life insurance markets continued in 2025. Although there was a slowdown compared to the previous year, premiums recorded an average of 8.7 percent nominal and 4.1 percent real growth. Non-life insurance premiums increased in real terms in 46 of the 53 countries reporting data.
Premium regulations made by companies against rising damage costs, especially in motor vehicle and health insurance, were effective in this growth.
In Türkiye, nominal premium production in the non-life insurance branch increased in real terms.
4 PERCENT REAL GROWTH IN LIFE INSURANCE PREMIUMS
Strong growth in life insurance markets continued in 2025. Premiums increased in real terms in 41 of the 52 countries that reported. The average nominal premium increase was recorded as 8.7 percent and the real premium increase was 4 percent.
In Türkiye, premiums in the life insurance branch grew above the country's inflation.
Growth dynamics between countries differed. In some markets, favorable financial conditions and demand for investment-based insurance products supported premium income. In some countries, pension reforms, the spread of occupational pension systems and demographic developments were effective in growth.
Claim payments in the life insurance branch decreased in real terms in half of the countries with data. The stabilization of interest rates and the decrease in early termination of policies due to the improvement in financial market conditions were effective in this development.
INVESTMENT RETURNS OF INSURANCE COMPANIES WERE MIXED
Insurers' investment returns remained positive on a nominal basis in most reporting countries in 2025. However, real investment performance showed a more volatile outlook compared to 2024.
While positive real returns were achieved in most of the life insurance markets, the share of countries providing positive real returns in non-life insurance markets decreased. Inflation, the rise in long-term interest rates and differences in portfolio structures were effective in this picture.
Despite this, the sector's overall financial performance remained strong. Return on equity averaged 16.7 percent in the life insurance sector and 15.7 percent in the non-life insurance sector. Only two countries reported negative returns in non-life insurance markets.
GLOBAL REINSURANCE CAPITAL REACHED 785 BILLION DOLLARS
Global reinsurance capital rose to a record level of $785 billion by the end of 2025. Issuance of catastrophe bonds, which insurance and reinsurance companies use to transfer their risks to capital market investors, also increased significantly.
Catastrophe bond issuances reached 25.6 billion dollars in 2025, increasing by 45 percent compared to the previous year. This increase contributed to the growth in global reinsurance capital.
While the leading reinsurance companies completed the year profitably, the industry-wide return on equity was around 19 percent on average for the third year in a row. While high profitability encouraged new capital inflow to the market, it put downward pressure on reinsurance prices.
