Swiss Re has stated that as the global economy returns to growth, rates will start to rebuild.
The second largest reinsurer in the world, Swiss Re Ltd., has just released its latest predictions about next year, and it has stated that the sectors for global primary coverage in non-life, as well as life insurance and health will all be on the rise as the worldwide economy starts to grow.
Property and casualty premiums are predicted to face an increase of 3 percent in real terms.
Moreover, after a year without movement in 2012, the reinsurer is predicting a 2 percent rise in the life insurance environment. The Zurich based company released a statement that said that this movement will be driven by emerging markets.
The life insurance increases will be the result of improving overall economic activity.
Swiss Re released the statement which said “Economic activity is expected to be moderately stronger next year, and insurance pricing is projected to improve.” This was a part of its overall 2013 industry and life insurance outlook, which it presented this week in London.
In the non life insurance sectors, the premiums had already experienced an increase of 3.4 percent throughout the length of this year. Furthermore, according to the reinsurer’s forecasts for 2013, it will undergo another advancement of 4.9 percent. These figures are a direct reflection of the upswing that the global economy is finally expecting over the upcoming several months.
The company also predicted that the reinsurance premiums for life and health will decrease next year by approximately 0.7 percent. This follows closely on the heels of the decline that was experienced this year, in which the industry faced an overall drop of 1.6 percent. That said, Swiss Re didn’t provide any of the specific figures for life insurance, nor for non life or health coverages.
The data used in the report came on November 15, which was two weeks after the impact of the superstorm (Sandy) that struck the American northeast. In terms of the impact on life insurance and other forms of coverage, the report said that the catastrophic losses from the storm “are expected to produce a negative underwriting result and subdue overall profitability.”