Global insurance premiums to reach $8.95t by 2035: Deloitte

Growth will be driven by rising protection demand, digital innovation, underserved markets, and ageing populations.

Global insurance premiums are expected to rise from about US$5.9t in 2024 to US$8.95t by 2035, as demand for protection grows and digital innovation reshapes how insurers serve customers, according to Deloitte.

In its report, Deloitte said the industry is entering a decade of sustained but uneven growth across life and health, and property and casualty insurance.

Life and health premiums grew 5% in 2024, the strongest expansion in a decade, largely driven by demand for savings products. The segment is expected to grow by about 3% annually and reach US$4.8t by 2035.

Deloitte said the growth mix is likely to shift, with protection products gaining importance, particularly in emerging markets such as Asia and Latin America.

Health insurance premiums are also expected to outpace life insurance across most regions, as rising healthcare costs, ageing populations, and strained public healthcare systems increase demand for private coverage.

Property and casualty insurance has doubled over the past two decades to US$2.4t and is expected to nearly double again by 2040. Demand will be driven by rising exposure to natural catastrophe risks, cyber threats, supply chain disruptions, and environmental challenges.

Emerging markets are expected to record stronger growth, whilst advanced economies are likely to stabilise.

Deloitte identified Southeast Asia as a fast-growing insurance region, supported by a growing middle class, ageing populations, digital adoption, and government reforms encouraging greater private-sector participation in health coverage.

However, the report said growth will be shaped by major structural shifts, including ageing populations, widening protection gaps, changing lifestyles, new mobility models, the rise of artificial intelligence and connected technologies, worsening climate risks, and geopolitical and macroeconomic uncertainty.

Deloitte said insurance products are expected to become more flexible and outcome-oriented, moving beyond static protection policies to modular solutions that combine protection, prevention, wellness, financial well-being, and risk mitigation services.

Customer engagement is also expected to become more proactive and personalised. Insurers may increasingly use real-time data to anticipate customer needs, tailor coverage, and support customers across digital and human channels.

AI is expected to become central to insurance operations, rather than a standalone tool. Deloitte said AI and modern platforms will likely be embedded across underwriting, claims, servicing, pricing, fraud detection, and customer engagement.

Commercial insurance is also expected to grow steadily as businesses face more complex risks. These include cyber threats, autonomous fleets, drone delivery, supply chain disruptions, catastrophe exposure, and environmental risks.

Health insurers, meanwhile, may evolve from passive claims payers into active care partners, using telemedicine, wearables, predictive analytics, and public-private partnerships to support prevention, earlier intervention, and better outcomes.

Deloitte said the savings and retirement segment is also poised for growth as retirement gaps widen and consumers seek more flexible, personalised, and higher-yield solutions.

By 2035, the report expects the insurance industry to move beyond risk transfer and become a broader part of prevention, resilience, and long-term financial security.

Deloitte said insurers, policymakers, and ecosystem partners will need to act early through innovation, collaboration, and resilient business models to stay relevant in a rapidly changing market.