Global insurance industry to recover strongly from COVID-19 induced pull-back

09 July 2020 Swiss Re

• Global insurance premium volumes will recover to pre COVID-19 crisis levels in 2021
• Insurance demand will slow sharply in 2020 due to the pandemic; global life premiums will contract by 6% and non-life by 0.1%
• In life, saving products will be hardest hit; in non-life, travel and trade related lines will suffer most
• Led by China, emerging markets will underpin global market strength with total premiums up 1% this year and 7% in 2021
• Rate hardening in commercial lines will support profitability in non-life; rising risk awareness due to COVID-19 will support premium growth across many lines of business over the longer term

The insurance industry is set to overcome this year’s COVID-19-induced global economic recession, the latest Swiss Re Institute’s sigma says. The sharpest economic contraction since the 1930s will lead to a slump in demand for insurance in 2020, more so for life products, with global premiums expected to contract by 6%, than for non-life covers (-0.1%). However, total premium volumes will return to pre-crisis levels in 2021 already, alongside more protracted recovery in the global economy. There will be sector divergence, with non-life premium volumes above pre-crisis levels, and life below. The emerging economies, led by China, will underpin the insurance market comeback.

Click here to

Please use this link to access the sigma Explorer


fanews magazine
FAnews April 2024 Get the latest issue of FAnews

This month's headlines

FAIS Ombud lashes broker for multiple compliance blunders
TCF… a regulatory misfit initiative?
The impact of NHI on medical malpractice insurance
Fixed versus variable: can you have your cake and eat it too?
The future world of work
Subscribe now