Asia to drive global insurance growth

According to the latest report of Swiss Re Institute (SRI), emerging Asian countries will continue to drive global insurance growth in 2020 and 2021.

In real terms, that is on inflation-adjusted basis, the growth of global premiums would be of 3% for the next two years. To date, the global return on equity of life and non-life insurance has remained relatively high thanks to the good investment performance.

Due to the persistence of low interest rates, the profitability of the non-life insurance in the near future will largely depend on underwriting performance, with an increasing loss experience offsetting premiums' growth. The profitability of life insurance will remain linked to the companies' investment policy.

During the years 2020 and 2021, the estimated average annual growth of Asia's emerging markets' premiums is of 9%. With an 11% growth rate, China alone will account for 60% of the additional premiums underwritten in Asia over the next 10 years. Growth opportunities of non-life insurance would of 7% in the coming two years against 5.8% by the end of 2019. The life business, on the other hand, would report a premium growth of 9%.