AI-Driven Wealth Growth Exposes Insurance Industry's Vulnerability
According to Allianz Research's Global Wealth Report, global household financial assets rose 8.6% to a record €268.4 trillion in 2025. This growth was largely driven by rising asset prices, which generated four out of every five euros of new wealth.
However, when adjusted for inflation, real wealth grew only 23%, and purchasing power sits just 5% above its 2021 level. The distribution of these gains is particularly concerning for the insurance industry, as Canadian households directed a large share of their savings into securities in 2025.
Canada ranked seventh globally in net financial assets per capita at €135,350 in 2025 but has one of the highest household debt ratios among advanced economies, standing at 103.3% of GDP. This combination of elevated debt and securities-heavy portfolios makes Canadian households' balance sheets more sensitive to market movements than the headline wealth figure suggests.
Allianz Research estimates that a 25% correction in the S&P 500 would erase approximately US$27 trillion in US household wealth, pushing the US economy into recession. This scenario could also impact Canada's trade, credit, and financial lines books.