Swiss Re sees further growth in the global insurance market
Published: Tuesday, Nov 19th 2024, 12:30
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The Swiss Re Institute expects further growth in the global insurance markets. Global premium income is likely to increase by 2.6 percent in both 2025 and 2026, as the reinsurer announced on Tuesday as part of a new Signa study.
The experts expect growth above all in the life insurance segment, where premiums are likely to rise by 3% per year worldwide over the next two years. This is twice as fast as in the last ten years, with the drivers of growth being the USA and China.
Growth with baby boomers
According to the figures, global life premiums are expected to climb to USD 4.8 trillion by 2035, up from USD 3.1 trillion this year. The baby boomer generation is retiring at a time when higher interest rates are reviving the market for savings products, according to Paul Murray, head of Swiss Re's Life+Health division.
In non-life insurance, on the other hand, a slowdown in momentum is expected following the strong growth of recent years. Real annual premium growth of 2.3% is forecast for the next two years, which is below the average of 3.1% for the last five years.
Solid global economy
The basis for further growth in the insurance market is the solid global economic growth of 2.8% and 2.7% expected by the Swiss Re Institute in the next two years, despite increasing geopolitical and financial risks.
Global demand will continue to be supported by rising real wages, persistently higher interest rates in key markets such as the USA, ageing populations and a growing middle class in emerging markets, the report continues. Higher interest rates are also supporting the profitability of insurers.
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