Global insurance premiums to exceed $7 trillion in 2022

A significant growth is expected in the insurance sector globally with an increase of 6.1 percent. According to the research detailed in the Insurance Agenda published on Bloomberg HT, global insurance premiums are expected to exceed 7 trillion dollars with this growth.

According to Swiss Re, global insurance premium volume will reach new highs in 2022 and global insurance premiums will exceed $7 trillion in 2022. Swiss Re Institute announced the results of its "Sigma 4/2022-World Insurance" research. According to the details of the research discussed in the Insurance Agenda program broadcast on Bloomberg HT, Swiss Re forecasts a strong nominal growth of 6.1% in total life and non-life premiums in 2022; however, in real terms, this translates into almost flat growth (+0.4%). In nominal terms, however, total premium volume is expected to exceed $7 trillion for the first time this year. "We base our forecast on strong market recovery from pandemic-induced lows, continued rate hardening in non-life, and stronger premium growth, especially in emerging markets," Swiss Re said. Other findings of the Swiss Re Institute Sigma 4/2022-World Insurance Report are as follows: High inflation will continue for some time. Niche segments such as aviation, trade credit, political risk and marine insurance are among the lines of business exposed to higher claims as a result of the war in Ukraine. Cyber insurance demand may increase. In the non-life sector, there will be a return to positive growth in real terms in 2023, with global premiums rising by 2.2 percent, mostly due to continued interest rate hardening in commercial lines. Higher interest rates will start to manifest themselves in increased profitability next year, with stronger investment returns. Life premiums will rise by an estimated 1.9 percent in real terms next year, as high post-pandemic risk awareness boosts demand for protection-type products and insurers become increasingly digitalized. The impact of rising interest rates will likely manifest itself in improved investment returns for life insurers in 2022, with a more significant increase in the medium to long term. Source: Bloomberght