Looking ahead to 2025, Swiss Re’s Business Unit CEOs highlight that the re/insurance industry faces geopolitical instability, social tensions, and economic uncertainty—factors that could significantly impact the industry and potentially drive up claims.
Additionally, losses from natural disasters continue to rise, with 2024 marking the fifth consecutive year that insured losses exceeded USD 100 billion, according to the Swiss Re Institute. This trend shows no signs of slowing.
Social inflation is expected to remain a major concern for re/insurers in 2025. Liability claims in the US have increased by 57% over the past decade, and jury awards exceeding USD 10 million are becoming more frequent.
Moreover, life insurance is driving global premium growth as interest rates remain higher for longer. Global insurance premium growth in 2025 and 2026 is primarily driven by life insurance, which is forecast to grow by 3% annually, according to the Swiss Re Institute.
Urs Baertschi, CEO P&C Reinsurance, said, “The role of the insurance industry in society is to protect more people when they really need help the most, and that purpose is as true today as ever before. Amid geopolitical uncertainties and territorial tensions, risks are becoming more severe. Protectionist trade policies are likely to slow global growth, leading to higher inflation and potential supply chain disruptions. At the same time, we expect increasing losses from natural catastrophes and elevated litigation to continue.
He added, “As uncertainty rises, so does the need for protection. In this environment, insurers need support from reinsurers beyond traditional risk transfer: providing insights, knowledge and tools that improve risk awareness and inform effective risk management.”
Paul Murray, CEO L&H Reinsurance, commented, “Life and health insurers will continue to see steady growth in 2025 – perhaps not the decade-high levels of 2024 but exceeding the historical average. With fixed income yields still robust, insurers’ profitability prospects are intact even as inflation has moderated. I also see further opportunities for life insurers to optimise their balance sheets and support new business growth using reinsurance, especially as many are now gauging the impact of shifting to IFRS.”
Ivan Gonzalez, CEO Corporate Solutions, explained, “In the commercial insurance space, three key themes are set to shape the coming year: Firstly, corporations around the world will continue to adapt their risk management to heightened loss trends driven by factors such as climate change and social inflation. Secondly, as pricing is plateauing at attractive levels, insurers need to find innovative ways to support their clients. Finally, the balance between primary insurance, reinsurance, and alternative risk transfer solutions will play a pivotal role in enhancing resilience of both insurers and corporates.”
