17 July 2018 13:30
Photo : Freepik
Insurance premiums experienced slower growth in 2017, falling to 1.5 % compared to an increase of 2.2% in 2016, according to the latest study, sigma Swiss Re Institute.
This 1.5% increase is equal to almost 5,000 billion USD. The growth has slowed down in the sector of life insurance and damage insurance, the study said. Life insurance premiums have increased to nearly 2 700 billion USD and insurance of damage to 2 200 billion.
Decline in premiums in life in the advanced markets
Swiss Re attributed the slowdown in premiums overall decline in life insurance premiums in advanced markets, such as the United States and Western Europe, with a decline of 2.7 %.
This market in North America has shrunk by 3.5 %. According to Swiss Re, the withdrawal from the market of pension savings has influenced this figure. The reinsurer added that the sector life in the advanced markets is still not relieved of the financial crisis of 2008.
For premiums for property and casualty insurance, advanced markets have experienced an overall stability in 2017, with a growth of 1.9 %. In the United States, the automotive sector has experienced higher rates and prices in the insurance business remained under pressure, says the institute.
Increase in premiums in emerging markets
Swiss Re states that China has the insurance markets where the growth is most rapid in the world. It is the second the life insurance market in the world after the United States and represents more than half of life insurance premiums issued in the emerging markets, with a total of 11 %.
In emerging markets, life insurance premiums increased by 14 % and bonus damage from 6.1% in 2017.
For the coming years, Swiss Re expects an increase of premiums for property and casualty insurance in the world, driven by the U.s. economy that is strengthening. Also, it is believed that there will be an increase to premiums lives led by growth in China.