By Warren S. Hersch
North America’s share of life insurance and non-life insurance premiums written globally will decline by 5 percent over the next decade, according to a new report.
The Swiss Re Group, Zurich, Switzerland, discloses this finding in a new sigma study, “World Insurance in 2012.”
The report pegs the share of global life premiums
held by North America and Oceania (a region centered on the islands of the tropical Pacific Ocean) in 2023 at 23 percent, down from 25 percent in 2012. Likewise, Western Europe’s share declines to 28 percent from 33 percent over the same period.
And Advanced Asia’s (including Japan and South Korea) falls to 23 percent from 28 percent. By contrast, Swiss Re expects market share gains in other regions between 2012 and 2023, including:
● Non-Asian emerging markets: rising to 8 percent from 5 percent;
● China: increasing to 13 percent from 5 percent; and
● Emerging Asia (except for China): edging up to 6 percent from four percent.
“The expansion in emerging markets will likely accelerate as insurers in China and India adapt to the new regulatory environment, but the weakness in Western Europe will dampen development in advanced markets,” the report states. “The non-life side is more positive since the sector will benefit from the strong economic performance of emerging markets and selective rate increases in advanced markets.”
The report additionally shows the share of global non-life premiums held by North America and Oceania dipping to 36 percent in 2023 from 41 percent in 2012. Also declining over the 11-year period is Western Europe’s share, which is projected to fall to 26 percent from 30 percent; and that of advanced Asian countries, which declines to 10 percent from 11 percent.
However, the Swiss Re report again expects emerging nations to boost their shares between 2012 and 2023. Among them:
● China: increasing to 13 percent from 5 percent
● Emerging Asia, except for China: rising to 4 percent from 3 percent;
● Non-Asian emerging markets: rising to 11 percent from 9 percent.
The study adds that global premiums written increased by 2.4 percent in real terms in 2012 to $4.6 trillion. Life premiums expanded by 2.3 percent, thanks to “improvements in emerging markets and solid demand in the U.S. and Asian markets.”
Originally published on LifeHealthPro.com