Global non-life insurance premiums grew 1.9 percent in 2011 compared to 2010, driven by strong economic expansion in emerging markets and by rate increases in advanced markets, according to Swiss Re.

In its recent study on world insurance in 2011, Swiss Re says non-life insurers’ capital position remains sound and the industry is in a “strong position to grow steadily in the future.”

But the study does note some challenges in advanced markets. The unfolding recession in Europe and slowly recovering economy in the U.S. have dampened demand for insurance cover, Swiss Re says: “Slower economic growth in the advanced markets will weigh on demand for non-life insurance.”

The study also says low interest rates will continue to be a challenge for the insurance industry, but hardening prices—in conjunction with robust growth in emerging markets—are expected to support further premium growth throughout 2012.

For 2011, Swiss Re notes, the difference in non-life premium growth in advanced markets (0.5 percent) and emerging markets (9.1 percent) is stark. Latin America and the Caribbean saw the highest rate of growth at 10.7 percent, but even Africa, which saw the slowest rate of growth for emerging markets at 3.3 percent, grew at a higher rate than any advanced market.

In the advanced markets, Japan led the way with respect to growth, with 2011 premiums up by 2.8 percent compared to 2010. The United States saw premiums shrink by 1.3 percent relative to 2010. The U.S. and Italy (-1.8 percent) were the only two markets among advanced and emerging countries/regions to see shrinking premiums.

Still, despite the higher rate of growth in emerging markets, total premiums in these regions amounted to $334 billion—well behind the $1.6 trillion in premiums for combined advanced markets.

Special Reports /

Global Premiums Rise in 2011; Emerging Markets Show Robust Growth

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