Global insurance premiums are expected to grow by 3.4% in real terms in 2021, taking global direct premiums written in 2021 to 8% above the 2019 level, and global insurance premiums should exceed $ 7 trillion for the first time by mid-2022, Swiss Re said. Ltd. in a report on Wednesday.
Growth is expected to continue at 3.3% in 2022 and 3.1% in 2023, driven by "increasing risk awareness in both the life and injury segments" and a continued tougher pace in commercial insurance lines will provide further support , said Swiss Re.
The increasing risk awareness was a lesson from the pandemic outbreak, said Swiss Re. "Increasing risk awareness is creating demand for more insurance coverage," said Swiss Re.
North America will contribute $ 1
the industry absorbs covid-19-related claims, above-average catastrophic losses and high inflation ", although a" strong recovery "is expected in 2022 for the profitability of commercial issue when interest rates on commercial lines rise again and insurance companies take inflation into account.
"The non-life insurance companies' profitability is expected to recover significantly despite inflation's risk to profitability in the medium term," said Swiss Re.
The recovery from the pandemic and the resulting economic downturn will be "uneven," said Swiss Re. , which predicts global real economic growth of 5.6% in 2021, 4.1% in 2022 and 3.0% in 2023.
Growth will be strengthened by adopting digitalisation, said Swiss Re. "The adoption of digital technology throughout the economy, including digital infrastructure, is the key to higher productivity growth."
Part of the digitalisation adopted as a cure during the pandemic has proved popular and productive. "Consumers welcome digital and online insurance and they should grow rapidly," says Swiss Re.