Global non-life insurance premiums up in 2011

MANILA, Philippines - Global non-life insurance premiums had grown by 1.9 percent in 2011, on the back of solid economic growth in emerging markets and selective rate increases in some advanced markets, according to one of the leading global reinsurers.

According to Swiss Reinsurance Co. Ltd. (Swiss Re), global life insurance premiums, declined 2.7 percent.

On the other hand, Swiss Re is one of the leading global reinsurance companies focused on risk transfer, risk retention financing and asset management.

Life premiums dropped sharply in Western Europe, China and India, while growth resumed in the US.

“Going forward, non-life premiums are expected to continue expanding moderately in the advanced markets. Life insurance premium growth in the emerging markets will revive,” Swiss Re.

In the emerging markets, non-life premium growth remained robust at 8.6 percent, backed by strong economic expansion. The advanced markets recorded marginal 0.5 percent growth, supported by rate increases in some regions and lines of business.

However, the unfolding recession in Europe and the weak economy in the US dampened demand for insurance cover.

“Non-life premium growth in the advanced markets has been supported by gradual rate increases in personal lines of business and in regions affected by large natural catastrophes. Despite the adverse environment in 2011, non-life insurers’ capital position remained sound, putting the industry in a strong position to grow steadily in the future.” Daniel Staib, one of the authors of the study, said in a press statement.

Meanwhile, life insurance premiums declined overall, although many markets continued to show firm growth.

In the advanced markets, premiums dropped 2.3 percent overall, even though premiums grew in the US and Japan, the two largest markets. In the US, premiums from new life insurance business rebounded, led by strong demand for variable annuity products with guarantees. In Japan, sales of individual whole life policies strengthened and annuity products recovered.

However, the advanced markets suffered from a steep decline of in-force life insurance business in Western Europe.