Reinsurance News

Global macroeconomic resilience cut by 18% by COVID-19: Swiss Re

15th June 2021 - Author: Charlie Wood

COVID-19’s emergence in 2020 caused macroeconomic resilience to fall by 18%, according to a Swiss Re Institute report.

Swiss Re InstituteWhile global economic growth is expected to recover strongly this year after the pandemic-induced recession in 2020, the resulting macroeconomic resilience will fall short of levels seen pre-COVID-19.

Meanwhile, the global insurance protection gap reached a new high of around $1.4 trillion in 2020, yet global insurance resilience is expected to grow in 2021 due to increased risk awareness.

“Our study clearly shows that economic resilience pays off. Advanced regions benefitted from both stronger levels of macroeconomic resilience and health insurance resilience than their emerging counterparts,” Jérôme Haegeli, Swiss Re Group Chief Economist.

“However, to restore macroeconomic resilience and drive long-term growth, deep structural reforms are needed.”

“The global pandemic has accentuated the gap between the rich and poor. It has laid bare the need for governments to focus on rebuilding and promoting social cohesion. Social equity – and at its heart, creating equal opportunities for all – will be a defining feature of a more resilient world.

“The global insurance protection gap reached a new high of USD 1.4 trillion. Closing this gap would both support long-term economic stability and increase society’s capacity to absorb shocks.

“Making insurance more widely available and affordable will be essential. But re/insurers and leaders in business and government must make resilience a shared priority.”

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
TransRe and Gen Re break off underwriting partnership

Transatlantic Reinsurance Company (TransRe) and General Reinsurance Corporation (Gen Re) have decided not to renew their underwriting partnership for North...