The key facts

  • Insurance penetration in OECD countries rose from 6.2% to 6.6% of GDP, and in non-OECD countries from 3.7% to 4.2%
  • Reinsurance capital reached a record $785 billion, with catastrophe bond issuance up 45% to $25.6 billion
  • Insurance payouts for natural catastrophes fell from $137 billion to $107 billion against economic losses of $220 billion

The sector has weathered a year of risks

The global insurance sector remained resilient in 2025 despite extreme weather events, geopolitical uncertainty and cyber threats, according to the OECD Global Insurance Market Trends 2026 report published on 2 November. Anadolu reported the news. Insurance penetration in OECD countries rose on average from 6.2% of GDP in 2024 to 6.6% in 2025, while in reporting countries outside the OECD it rose from 3.7% to 4.2%. At the same time, life insurance penetration in OECD countries declined slightly, while it grew in non-OECD countries; non-life insurance there remained largely stable.

Premiums, loss ratios and profitability

The non-life insurance market showed nominal premium growth of 8.7% and real growth of 4.1%; real growth was recorded in 46 of the 53 reporting jurisdictions. The growth was largely driven by price adjustments by insurers, which offset the rising cost of claims, especially in motor and health insurance. In 34 of the 39 jurisdictions with available data, the combined ratio was below 100%, indicating underwriting profitability: from 72.6% in Slovenia to 92.9% in the United States; it exceeded 100% in Colombia, Argentina, Finland and El Salvador. The life insurance market grew by 8.7% nominally and 4% in real terms; real growth was seen in 41 of 52 jurisdictions, including Türkiye, driven by demand for investment products, pension reforms and the expansion of corporate pensions. The average return on capital was 16.7% in life insurance and 15.7% in non-life.

Record reinsurance capital and lower catastrophe losses

Global reinsurance capital reached a record $785 billion by the end of the year, helped by a 45% increase in catastrophe bond issuance to $25.6 billion. Leading insurers posted an average return on capital of 19% for the third consecutive year, which, according to the report, is exerting downward pressure on reinsurance rates. Insurance payouts for natural catastrophes fell from $137 billion in 2024 to $107 billion, while economic losses declined from $318 billion to $220 billion. The cyber insurance market grew to roughly $15 billion: penetration among large corporations reaches 60–85%, but only 10–30% among small and medium-sized businesses. National authorities most frequently cited climate and cyber threats among the main risks; the geopolitical situation is drawing attention because of its potential consequences for the economy and the cost of claims.