Swiss Re pessimistic about market perspectives

During the presentation of the “Global Insurance Review 2011 and Outlook 2012 and 2013”, Swiss Re has pointed out to the various threats affecting insurers. The latter will have to face a probable devaluation of their assets by up to 25% or even 35% in case of discount of Spanish, Italian, Greek, Irish and Portuguese debts. The gloomy economic situation in the euro zone and in the United States is slowing down market growth. Inflation and poor interest rates are threatening the profitability of financial investments. As a consequence, premium growth for non-life insurance in industrialized countries will not exceed 0.6% in 2011, 1.7% in 2012 and 2.9% in 2013 compared to 8.9%, 7% and 8.6% in emerging countries. In life insurance, developed countries will sustain a 1.4%-decrease of written premiums in 2011 followed by a rise of 2.2% in 2012 and 2.9% in 2013. Emerging countries will see their premiums grow by 8% over the next two years.