Total insurance premiums in the world grew by 3.4% in real terms, according to Beinsure Media Global Insurance Market report. The non-life sector posted 2.6% growth, driven by rate hardening in commercial lines in advanced markets. Life premiums in China contracted by 2.6% due to weakness in life savings business caused by a further decline in critical illness business.
Beinsure forecast that premiums will grow by an average 9% per annum (in real terms) over the next decade, stronger than the 7.5% annual average of 2015–2024.
A complex macro environment influenced insurer confidence and strategies. Economic resilience, improved global supply chains, and a construction boom boosted confidence. However, geopolitical instability, inflation, and climate concerns created uncertainty.
The increasing use of cross-border asset-intensive reinsurance transactions has raised questions about the extent to which regulatory differences in valuation, reserving and capital requirements across jurisdictions drive this trend.
Supervisory focus on these reinsurance transactions also aims to provide clarity on who retains asset ownership (cedent or reinsurer), who manages the assets and which jurisdiction has supervisory authority over these assets.
Risk factors affecting future insurance sector solvency and profitability include sustained high levels of inflation, lapses, significant unrealised loss positions and the possibility of a reduction in demand for insurance due to strains on the purchasing power of households.
Geopolitical tensions continue to negatively influence the outlook. The IAIS will continue to actively monitor the global insurance market and refine its systemic risk assessment, including through the development of additional indicators in 2024.
“The insurance market moderated as insurers balanced growth with profitability. Conditions varied between favored and challenged risks,” says Oleg Parashchak, CEO of Finance Media.
The US remains the largest insurance market with total premiums of $2.8 trillion. China and Japan follow. Together, these three markets accounted for nearly 56% of global premiums, slightly less than 2023’s 57%.
India will become the 6th largest insurance market by 2032, surpassing Germany, Canada, Italy, and South Korea. This projection considers strong economic growth, rising disposable income, a young population, increased risk awareness, digital penetration, and regulatory developments.
There were more than 9,000 insurance companies operating in Europe. In terms of domestic companies, only around 300 companies were operating inside Europe. Biggest insurance companies in Europe 2024 were ranked by gross premiums written.
The European insurance industry is a significant contributor to the region’s economy, providing financial protection to individuals, businesses, and governments against various risks.
According to Insurance Europe, every year, European insurers pay out an impressive amount of over €1,000 bn in claims, which translates to approximately €2.8 bn per day. They also play a significant role in the job market, as they employ over 920,000 people.
The European insurance industry is dominated by a few large multinational companies, such as Allianz, AXA, Assicurazioni Generali, and Zurich Insurance Group, but there are also many smaller regional or niche insurers operating in the market. The largest insurance markets in Europe are Germany, the United Kingdom, France, Italy, and Switzerland.
Swiss Re Institute projects the global insurance market will exceed $7.5 trillion by the end of 2023. Rate increases in commercial lines will support premium growth in non-life sectors, partly offset by higher claims.
Life insurance will benefit from greater risk awareness and digital interaction. Rising interest rates will eventually support profitability through higher investment returns.
Adverse claims trends pushed pricing up in Auto and Casualty sectors, while Cyber and Directors and Officers markets softened as insurers aimed to retain and grow portfolios.
Property pricing remained volatile due to inflation, high reinsurance costs, climate change, and natural catastrophe exposures. Risks related to the USA on non-USA placements remained challenging.
The top 20 countries’ market share declined to 90%. Asian markets hold six of the top 20 spots, with a 23% share.
The war in Ukraine impacts Europe’s economic growth. Insurance industry growth in emerging markets will likely surpass advanced markets this year, led by emerging Asia.
Swiss Re Institute expects India to be one of the fastest-growing markets globally over the next decade.
