The global economy is expected to strengthen modestly next year, according to Swiss Re’s latest publication, “Global insurance review 2014 and outlook 2015/16”. Non-life insurance premiums are expected to grow 2.8% in 2015, supported by strong economic activity in emerging markets. The life insurance sector will be notably stronger in both the advanced and emerging markets, and global in-force premiums are forecast to increase by 4.8% this year and by around 4% in 2015 and 2016. The low yield environment remains a profitability challenge, in particular for life insurers.
- Global economy to strengthen moderately in 2015 but prospects for different regions are mixed
- Long-term investments will continue to be a challenge despite growth and rising interest rates
- Real non-life premiums forecast to rise by 1.4% in the advanced markets in 2015; growth in emerging markets to recover to 8%
- Global life premium growth expected at 4% in 2015
- Property catastrophe reinsurance rates will likely remain under pressure at the 2015 renewals; thereafter decreases are expected to slow
- Aviation rates are increasing; in other segments, differences by market exist