The economists at the Swiss Re Institute expect global insurance premiums to follow this strong economic growth and increase by around 3.3% to a total of 6.9 trillion US dollars in 2021. In the same year, they forecast insurance premium growth for the major markets in China, 1.7% in the US, 2.8% in Western Europe and 5.6% for emerging markets. For 2022, the report predicts insurance premium growth of 3.9%.
“We expect the insurance industry to earn a record $ 7 trillion in premiums by the end of next year,” said Jerome Haegeli, group chief economist at the Swiss Re Institute. “The best preparation for the next economic shock is to have economic buffers. However, fiscal and monetary buffers are being used up, making the private insurance sector more important. Closing gaps in protection must become an economic policy goal. “
Swiss Re’s annual insurance premium report examined how factors such as inflation and digitalization are influencing the development of the insurance industry.
The report found that positive development in consumer awareness is an important opportunity for insurers as it has been “cemented” by the COVID-19 pandemic. It also highlighted how global health and protection insurance premiums rose 1.9% and 1.9%, respectively, in 2020.
“The economic upswing expected in 2021 and 2022 is well on its way and this is a key factor in the growth in insurance premiums around the world. The most important market to watch is China, where both economic and premium growth are continuing at a rapid pace, ”said Haegeli.
“Consumer awareness is clearly a major driver of growth, and this has been driven by the pandemic. Whether it’s private health insurance or interrupting the supply chain for companies, people have become much more aware of what insurance is and how it can help them emerge from such a crisis. ”