Finnacord has now released the results of a research study looking into the future of the commercial P&C market.
According to the outcomes of a research study conducted by the Finaccord financial research firm, by the close of the year 2018, the global commercial property and casualty insurance market will break the $895 billion mark in gross written premiums.
It also pointed out that commercial liability coverage premiums would see the fastest growth rate.
By the end of 2014, the worldwide commercial non-life premiums for property and casualty insurance were $728.6 billion. That showed a nominal compound annual growth rate (CAGR) of 5.1% since 2010, when the figure had been $596.3 billion. That said, in real terms, the growth rate was actually only 3.0 percent. Furthermore, last year the global market value was broken down between the commercial motor insurance premiums (28.9 percent of the total, at $210.3 billion), and all other forms of commercial non-life coverage (at $518.3 billion), which was composed of mainly property and commercial liability.
When looking forward the property and casualty insurance premiums growth will start to speed up.
Finaccord stated that it predicts a higher rate of growth in the global commercial non-life market in both the nominal compound annual growth rates and the real CAGR spanning from 2014 through 2018 than was the case during the same number of years that ran from 2010 through 2014. The forecast was that by 2018, the premiums would reach a value of about $895.1 billion. When taking into account the predicted rate of inflation, that will come to around $824.5 billion.
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Finaccord managing consultant, David Parry, explained that “Worldwide, we expect commercial liability insurance premiums to increase at more than three times the rate of commercial motor, commercial property and commercial MAT premiums through to 2018.” He also added that overall, the results that will be seen will be greatly related to growth activity within the United States, which comprises over half the commercial liability insurance market in the world.
Parry pointed out that despite the fact that commercial motor and property and casualty insurance coverage markets remain stable within the United States, premiums for liability cover continue to see a strong growth, particularly in the case of workers’ accident policies.