Swiss Re Institute, a subsidiary of the reinsurance giant, has predicted global non-life premiums to rise 10.3% by 2024, with improved property-catastrophe and casualty rates seen as driving factors.
Meanwhile, the firm’s long-running Sigma report expects life premiums to increase 9.1% globally in the same period.
Higher risk awareness and strong demand for protection-type products have are identified as key motivating factors to this.
Also on the rise are global health and medical insurance premiums, thanks to US economic growth and stable advanced market demand.
Elsewhere, the report notes how emerging market expansion is expected to be strong, with China projected to grow 10% in each of the next two years, largely driven by strong demand for medical insurance, including critical illness covers.
“Market conditions suggest that positive pricing momentum will continue across all lines and regions,” said Jerome Haegeli.
“Inflation-driven higher claims development in all lines of business, continued social inflation in the US and persistently low interest rates will be the main factors for market hardening.”
Following COVID-19, rising risk awareness in general is said to have overall generated a greater demand for insurance protection.
Swiss Re’s Sigma report underlines the pandemic’s role in highlighting the central role insurers play in absorbing risk during times of crisis.