Foreword 3

Executive summary 6

1 Insurance penetration 8

  1.1. The level of insurance penetration increased in 2025 in OECD countries and non-OECD reporting jurisdictions 9

  1.2. Higher-income countries tend to have higher insurance penetration 10

  1.3. Similar penetration levels reflect different mixes of life and non-life insurance 10

2 Premium growth and underwriting performance in the non-life insurance sector 12

  2.1. Continued growth in non-life premiums 13

  2.2. Pricing adjustments remained the main driver of non-life premium growth 14

  2.3. Increased policy volumes also contributed to premium growth 15

  2.4. Claims development reflected different loss experiences 16

  2.5. Underwriting profitability masked diverse underlying dynamics 18

  2.6. Insurer retention ratios increased despite cheaper reinsurance 19

3 Premium growth and underwriting performance in the life insurance sector 22

  3.1. Life insurance markets recorded solid growth across most jurisdictions 23

  3.2. Financial market conditions supported investment-linked products 24

  3.3. Pension reforms and retirement saving supported growth in some markets 24

  3.4. Lower surrender payments contributed to slower claims growth 24

4 Investment performance and portfolio allocations 27

  4.1. Real investment returns declined across most jurisdictions 28

  4.2. Bonds remained the dominant asset class 30

5 Profitability in the insurance sector 32

  5.1. Overall profitability remained strong 33

  5.2. Shareholder equity 34

6 Risks and vulnerabilities facing the insurance sector 36

  6.1. The risk environment became more complex 37

  6.2. Cyber risks 38

  6.3. Catastrophe and climate risks 38

  6.4. Geopolitical risks 40

References 41

Annex A. Statistical tables 43

Annex B. Methodological notes 53