Global Insurance Report 2025: Finding profitable personal lines growth

Investment Rating - The report indicates a positive outlook for the personal lines property and casualty (P&C) insurance industry, pivoting towards sustained, profitable growth [8][13]. Core Insights - The personal lines P&C industry generated approximately $1.1 trillion in gross written premiums in 2023, representing about a quarter of the total insurance industry's premiums. Premium growth of 9.5% in 2022-2023 outpaced nominal global GDP growth by 0.5 percentage points [11][12]. - Despite growth, the industry's relevance, measured as gross written premiums as a share of nominal GDP, remains below pre-pandemic levels, with personal lines at 1.0% of global GDP compared to 1.2% in 2019 [12][14]. - The report highlights that the growth in personal lines has been primarily driven by rate increases, particularly in auto and home insurance, with limited expansion into new risks [16][17]. Summary by Sections Insurance Affordability - Rising coverage costs are becoming more widespread, with home insurance costs in the U.S. increasing from 1.0% of household income in 2019 to 1.2% in 2023. This trend is attributed to rising asset prices, increased repair costs, and higher reinsurance costs [27][28][29]. Trends Affecting Personal Lines - Emerging mobility models and the increasing frequency of natural disasters are forcing carriers to rethink their coverage approaches. The report emphasizes the need for innovation and adaptation to capture new growth opportunities [45][46]. Industry Profitability - The report notes that combined ratios deteriorated in 2022-2023 due to inflation, but are expected to recover in 2024 as inflation stabilizes and rate increases take effect, shifting the focus towards profitable growth [25][26]. Market Opportunities - Select emerging markets are on the verge of expanding relevance, with notable countries such as Brazil, Chile, Malaysia, and Mexico presenting opportunities for growth as their GDP per capita increases [70][71].