Global premiums hit $5tr ‘for first time ever’: Swiss Re Institute
Global insurance premiums reached $5 trillion “for first time ever” in 2018, equivalent to more than 6 percent of the world’s gross domestic product (GDP), according to the latest Sigma study.
Research in the ‘World insurance: the great pivot east continues’ study from the Swiss Re Institute revealed that the increase came from solid growth in non-life premiums, while life insurance premiums were “subdued”. However, the report added that both life and non-life premiums will grow around 3 percent in real terms over 2019/20 as both sectors have strong emerging markets.
Explaining the difference, the study said, non-life has the added advantage of “solid growth” in advanced markets, while low interest rates have meant that growth in advanced markets for traditional life insurance savings business has remained challenging.
The US is still the largest insurance market, followed by China and Japan, however, the report confirmed the “ongoing shift” of business to the east. It said that by 2029, Asia-Pacific will account for 42 percent of global premiums, while China’s share of global insurance will grow to 20 percent. The study also marked China out as the country it expected to “become the largest insurance market by mid-2030s”, with the institute acknowledging the importance of this market by establishing a centre in Beijing.
The institute also highlighted motor premiums as an area “likely” to come under pressure in the longer term as advanced driver assistance systems continue to evolve.
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