Re/insurance broker Aon has released a study on Global Risk, Profitability, and Growth Metrics, focusing mainly on the Property & Casualty (P&C) business.
P&C has produced an underwriting profit in 2019 with a combined ratio of 97.4 percent, a decrease from last year’s 98.0 percent combined ratio
Europe averaged a 95.5 percent combined ratio, while Asia Pacific and the Americas each averaged 98.0 percent.
The report notes that in 24 of the top 50 markets, combined ratios were below 95 percent, and 14 countries were below 90 percent, compared to 24 and 10 countries last year. Furthermore, 5 countries showed five-year premium growth in excess of 10 percent, led by very strong growth in China.
The overall global combined ratio result, and the variation in results by country, demonstrates there are many desirable areas for profitable growth in the market today.
At year end 2019, global premium stands at an all time high of USD5.6 trillion, an increase of 3.2 percent over the prior year. Property-casualty premium increased by 4.1 percent, life & health premium increased by 2.3 percent, and reinsurance premiums grew by 12.8 percent.
Global capital increased 3.5 percent year on year to USD4.9 trillion, and reinsurance capital grew 6.8 percent, as Aon discusses at greater length in its Reinsurance Market Outlook.
P&C penetration is 1.9 percent of GDP, flat from last year based on 50 of the largest countries. Auto insurance accounts for 48 percent of property casualty premium, while property accounts for 31 percent and liability for 21 percent.
The report also shows that motor insurance is also the fastest growing line of business, with 6.0 percent annual growth over the last five years, driven by strong growth in China, South Korea, and the U.S. Liability is growing at an annual rate of 5.3 percent, and property at 3.0 percent.
