Global Insurance Premiums Top $4 Trillion

Swiss Re’s latest sigma study reports that the global insurance industry’s results from 2007 show that insurance premium income grew 3.3 percent in real terms to $4.061 trillion. The growth was “primarily driven by the life business in industrialized and emerging markets and to a lesser extent by the non-life business in the emerging markets,” Swiss Re noted.

Life insurance premiums increased 5.4 percent, which is above the previous 10 year average, while non-life premium growth was robust in the emerging markets (up 10 percent), but decreased in the industrialized countries (down 0.3 percent). However, Swiss Re said, “both the life and non-life industries are financially sound despite the challenging economic environment.”

Daniel Staib, one of the study’s authors, stated: “Despite a macroeconomic environment characterized by marginally slower economic growth and rising inflation, life insurance continued to expand in 2007 with world life insurance premiums increasing by 5.4 percent to $2.393 trillion.” Sales of retirement and other wealth accumulation products spurred growth in the industrialized economies. Life insurance in the emerging markets was fueled by strong economic performance and catch-up potential.”

Global non-life premium growth slowed to 0.7 percent in real terms, totaling $1.668 trillion in 2007. Growth patterns continued to follow divergent trends. While premium volume retreated in the industrialized markets, growth slowed only marginally in the emerging markets. “Though downward pressure on premium rates continued in some countries, overall technical results were favorable and profitability remained sound,” said the report.

Swiss Re’s sigma study “World insurance in 2007” examines the insurance markets of 147 countries, making explicit reference to 88.

For the complete presentation, including the graphs and charts illustrating the findings, go to www.swissre.com.

Topics Swiss Re