Global life insurance premiums are expected to outstrip the 10-year trend for growth – expanding by 1.5% next year, according to Swiss Re Institute.
The reinsurer’s latest sigma report estimated combined global insurance premiums across both life and non-life will grow by 1.1% in 2023 and by 1.7% in 2024, with premium volumes expected to hit a new peak of US$7.1trn in 2023, compared to US$6.8trn in 2022.
Across life insurance, global premiums are expected to rise by 1.5% in 2024, again above the 10-year trend of 1.3%.
Life premiums in emerging markets of Asia are expected to grow by 5% in real terms in 2023.
The border opening in China underpinned a 7.3% real growth forecast for life premiums in Hong Kong, while premiums in China are expected to grow by 3.8% in 2023 and 4.7% in 2024.
Led by India, Swiss Re Institute predicts 6.9% life premium real growth in other emerging Asian markets in 2023 and 2024, above the long-term trend of 4.5%.
Non‑life premiums in emerging Asia were predicted to grow by 6.7% and 6.2% over 2023 and 2024, while life premiums are set to grow by 5.0% and 5.4%.
Non‑life premium growth globally was predicted to increase to 1.4% this year.
According to the report, the automotive market is returning to growth after three years of contraction, also based on rising premium prices, while there is a decline in health premiums due to the end of pandemic support policies in the US.
Advanced economies are expected to grow by 0.8% this year, but for emerging economies overall, premium growth is forecast at 4.5%.
Non-life premiums for China and emerging Asia are expected to expand by 6.8% and 6.6% respectively.