- Global economic growth will remain solid over 2019/20, but momentum has peaked and downside risks have increased
- Global premiums are forecast to grow by around 3% annually in 2019 and 2020, and in emerging Asia by three times more
- The economic power shift from west to east will drive insurance sector development to 2020 and beyond
- Expanding the boundaries of insurability for corporate intangible assets will be another main growth area for insurers
- A newly-estimated USD 500 billion global property and mortality protection gap signals the large opportunity for insurers to help improve resilience
Global economic growth will remain strong over the next two years, although momentum has peaked. Swiss Re Institute’s latest sigma “Global economic and insurance outlook 2020” says the still-positive economic momentum will support the insurance sector, with global premiums up more than 3% annually over the next two years in real terms, a one-percentage point increase from 2018. Most demand will come from emerging Asia, where premiums are forecast to increase at more than three times the global average rate, by close to 9%. Innovation in insurance will expand the boundaries of insurability and further drive premium growth. It will also help improve global resilience by narrowing existing insurance protection gaps.