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Global insurance premiums grew 3.8% in 2015: Swiss Re
Solvency was at a record 130% last year
Staff on June 29, 2016
Last year, international insurance premiums grew 0.3 percent to 3.8 per cent, a Swiss Re report found.
Non-life premiums jumped from 2.4 per cent to 3.6 per cent, primarily due to growth in advanced markets such as Advanced Asia (4.1 percent) and North America (3.2 percent). Western Europe saw more moderate growth (1.5 percent), which was nevertheless a “significant improvement” after many years of stagnating prices. Emerging markets “continued their robust premium growth trend,” with growth in China reaching 7.8 percent.
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Low interest rates in developed markets put pressure on underwriting and investment results, which were both lower than in 2014.
“Interest rates and the macroeconomic and financial market environments will continue to shape the outlook for the insurance industry,” Kurt Karl, chief economist at Swiss Re, said in a release. “…Profitability in non-life will also remain subdued on still-low investment returns and soft pricing conditions.”
Nevertheless, solvency was at a record 130 percent in 2015, and Swiss Re expects capitalization to remain strong.
Growth in the non-life sector, however, is expected to weaken because of soft pricing and moderate economic activity in developed markets.
“Non-life premium growth will likely be strong in emerging Asia, mainly supported by China,” the report predicts. “In certain other regions, however, growth is expected to weaken or even contract.”
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Global insurance premiums grew 3.8% in 2015: Swiss Re
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