FANews
FANews
RELATED CATEGORIES

Global insurance premiums exceed USD 5 trillion for the first time as pivot east continues, Swiss Re Institute’s latest sigma says

04 July 2019 Swiss Re

  • Global insurance premiums topped USD 5 trillion for first time ever in 2018, with solid growth in non-life, subdued performance in life
  • Life and non-life premiums will grow around 3% in real terms over 2019/20, based on strength in emerging markets across both sectors, and solid growth in non-life in advanced markets
  • In advanced markets, traditional life insurance savings business remains challenging given low interest rates
  • In non-life, ongoing evolution of advanced driver assistance systems will likely pressure motor premiums in the long term
  • US remains largest insurance market, followed by China and Japan – ongoing shift of insurance business east continues
  • By 2029, Asia-Pacific will account for 42% of global premiums – share of China is forecast to be 20% and the country is on course to become largest insurance market by mid-2030s
  • Swiss Re Institute establishes its China Centre in Beijing

Global insurance premiums passed the USD 5 trillion mark for the first time in 2018, equivalent to more than 6% of world gross domestic product (GDP). This was based mostly on solid growth in the non-life sector, particularly in China and other countries in emerging Asia, and also among advanced markets, the latest sigma from Swiss Re Institute, "World insurance: the great pivot east continues", says. Global insurance premiums are forecast to grow by 3% in real terms in 2019/20, led by the emerging markets. Life premiums will increase by 2.9%, well above the 0.6% annual average of the previous 10-years, with a bounce back in China the main driver. In non-life, global premiums are forecast to grow by 3%, with emerging Asia taking the lead, supported by solid growth in advanced markets. China will contribute most to life and non-life premium growth over the next two years, and its share of global premiums will reach 20% by 2029, up from around 11% currently. China remains on course to surpass the US as the largest insurance market by the mid-2030s. With the growing importance of the market in China and publication of this annual edition of sigma, Swiss Re Institute is pleased to announce the timely opening of its Swiss Re Institute China Centre in Beijing.

Click here to read more (PDF).

Quick Polls

QUESTION

Most of the changes that companies are currently facing are driven by?

ANSWER

Technology and social media
The economic and political climates
Changing consumer demands
A E fanews magazine
FAnews June 2019 Get the latest issue of FAnews

This month's headlines

New realities of customer engagement
Success in the new CPD cycle
Shedding light on the reinstatement clause
Resisting the winds of change
Claim statistics tell the story
Growth assets for living annuity investors
Subscribe now