sigma 3/2019: World insurance: the great pivot east continues

Global insurance premium volumes passed a new benchmark high of USD 5 trillion in 2018. Global life premium growth was weak, but there was solid performance in non-life in 2018.

The central narrative of this year's annual world insurance sigma is the continued rise of the emerging markets, mostly emerging Asia and China in particular, as the main drivers of industry growth. From 11% in 2018, China's share of global premiums will rise to 20% by 2029. China remains on course to become the world's biggest insurance market by mid-2030s. The whole of Asia-Pacific will account for 42% of the global premiums by 2029.

"It's time to say HIGH FIVE because the global insurance premium passed a new benchmark high of USD 5 trillion this year. The outlook is promising. While global economic growth is slowing, we expect insurance demand to hold up over the next two years" says Jerome Jean Haegeli, Swiss Re Group Chief Economist.

"By 2029, Asia-Pacific will account for 42% of global premiums – with China's share forecast to be 20%," says Moses Ojeisekhoba, CEO Reinsurance Swiss Re. "The strategic importance of Asia and China will become more and more eminent across the world."

We are well prepared for opportunities ahead, a fact demonstrated by our opening of the Swiss Re Institute China Center in Beijing.
Edi Schmid, Group Chief Underwriting Officer and Chairman of SRI,

Swiss Re Institute forecasts close to 3% global premium growth in real terms per annum in 2019/20, against a slowing but still positive economic backdrop. Advanced market premiums will grow by 1.5%, and emerging markets by 7.9%. China will be the largest contributor, in both life and non-life. Overall, however, the advanced markets will still provide almost half of additional premiums in absolute terms in the next two years.

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Facts & Figures

Life and non-life premium growth vs GDP growth in real terms (7 year moving average)
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Market shares for total direct premiums written by main markets and by region, 1980-2029F
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Line business split in global life and non-life premiums (in USD billions and %), 2018E
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Treemap of the global insurance industry
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World map of total premium growth
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Premium growth since 1980
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sigma World insurance: the great pivot east continues

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"USD 5 trillion and counting - and why this is a significant milestone"

By Moses Ojeisekhoba, Swiss Re's Chief Executive Officer Reinsurance.

Read more "USD 5 trillion and counting - and why this is a significant milestone"

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