A report from Swiss Re has determined that global insurance premiums passed $5 trillion for the first time ever in 2018, a figure which represents 6% of world gross domestic product.
Swiss Re says this landmark figure was based mostly on solid growth in the non-life sector, particularly in China and other countries in emerging Asia.
Looking forward, Swiss Re says life premiums will rise by 2.9%, well beyond the 0.6% annual average of the previous 10-years, with a bounce back in China the main driver.
In non-life, global premiums are forecast to grow by 3%, with emerging Asia playing a lead part in that growth, supported by solid growth in advanced markets.
Overall, Swiss Re’s report states that China will contribute most to life and non-life premium growth over the next two years, and its share of global premiums will reach 20% by 2029, up from around 11% currently.
Furthermore, Swiss Re says China remains on course to surpass the US as the largest insurance market by the mid-2030s.
With the growing importance of the market in China, Swiss Re has also announced the opening of its Swiss Re Institute China Centre in Beijing.
“The establishment of Swiss Re Institute China Centre will support our Group’s growth ambitions in China,” said John Chen, Head Swiss Re China.