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Global insurance outlook
Globally, increased risk awareness following the COVID-19 pandemic will help drive the value of insurance premiums above Shs 24,791 trillion for the first time in 2022, according to Swiss Re forecast.
The reinsurance giant’s latest sigma study suggests that insurance premiums will grow by 3.4% in real terms in 2021, and by 3.3% and 3.1% in 2022 and 2023, respectively.
The outlook is also supported by a strong cyclical recovery from COVID-19, although economic growth is expected to slow in the next two years due to an unfolding energy price crisis, prolonged supply-side issues, and inflation risks. Global GDP growth is forecast to reach 5.6% this year, slowing to 4.1% in 2022, and 3.0% in 2023.
“The economic recovery we are experiencing is cyclical and not structural, with macroeconomic resilience weaker today than before the COVID-19 crisis,” Jerome Haegeli, chief economist at Swiss Re Group said.
“As such, we should be anything but complacent. Given its capacity and expertise to absorb risks, the insurance industry is crucial in making societies and economies more resilient.”
The study also outlines how climate change and digitalisation are significant trends shaping the world economy and insurance markets, with societies’ approach to transitioning to a green economy set to determine the economic outlook.
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