- 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.
Global insurance premiums volumes surpassed the USD 5 trillion mark for the first time ever in 2018. "Global direct premiums written were equivalent to more than 6% of world GDP in 2018, underlining the very significant role insurance plays in supporting sustainable development and global resilience. With USD 5 trillion of premiums written globally per year, the role of the insurance industry as a long-term investor is becoming ever more important ", says Jérôme Jean Haegeli, Group Chief Economist at Swiss Re.
Global non-life premium growth was solid at 3% in 2018, outpacing the historic average (2.2%) as advanced markets slowed and emerging markets grew. In China, non-life premiums rose by 12%, driven by strong increases in personal accident and health insurance. This was accompanied by a solid performance in emerging Asia overall. Growth in the global life sector was subdued due to shrinking markets in Europe, China and Latin America.