‘Global Insurance Industry To Hit New Records In 2020’
The global insurance industry is set to reach a new record in global premiums by mid-2022, exceeding $7trn, according to Swiss Re.
Swiss Re Institute’s latest sigma study reveals that this comes earlier than Swiss Re estimated in July and reflects rising risk awareness, increasing demand for protection and rate hardening in non-life insurance commercial lines.
According to Africa Ahead, the insurance industry outlook is also supported by a strong cyclical recovery from the Covid-19 shock, but economic growth is expected to slow in the next two years due to an unfolding energy price crisis, prolonged supply-side issues and inflation risks. Long-term structural support for growth is needed, as Swiss Re Institute’s resilience analysis in the sigma report shows.
Climate change and digitalisation are significant trends shaping the world economy and insurance markets. Rapid decarbonisation is becoming imperative and societies’ approach to transitioning to a green economy will determine the economic outlook.
The insurance industry can support the transition to a low-carbon economy, not only by absorbing disaster losses but also by promoting sustainable infrastructure investments that help mitigate the impact of volatile extreme weather.
Adopting digital technologies is not only playing a role in increasing global productivity growth, but Swiss Re research also found that the pandemic has transformed consumers’ receptiveness to interacting with insurance digitally, pointing to growth potential.
A third significant trend is the growing divergence of countries’ growth and socioeconomic indicators such as inequality – a potential downside risk.
Africa Ahead
