Revealed – world insurance coverage premium revenue

Total world insurance coverage premium revenue amounted to almost €5.6 trillion (about $6.05 trillion) final 12 months, in line with a brand new report by Allianz Trade.

Life remained the most important insurance coverage phase at €2.6 trillion, adopted by property-casualty (€1.8 trillion) and well being (€1.1 trillion). The premium pool grew by 4.9%, or €259 billion, amid a world inflation fee of 8.6%, Allianz Trade stated.

The three segments fared fairly in another way when it got here to development. While P&C grew at a sturdy 8.7%, well being grew by a extra modest 4.9%. The life insurance coverage market grew solely 2.4% as households felt the squeeze of inflation on their incomes.

P&C development

The rise in P&C premiums was pushed by all areas of the world. However, greater than half (€77.5 billion) of final 12 months’s world improve got here from North America alone. With premium revenue of €860 billion, North America stays the most important market on the earth by a major margin, Allianz Trade stated.

Asia additionally noticed vital development of 8.4% (€31 billion) final 12 months. With complete premium revenue of just about €403 billion, Asia overtook Europe for the primary time final 12 months. 

Life insurance coverage sector woes

While P&C loved sturdy development, the life insurance coverage market took successful final 12 months, significantly in Western Europe, the place premium revenue fell by virtually 3% (€22 billion) to €740 billion in 2022.

Sector development was additionally disappointing in Asia, with a rise of solely 3% (€33 billion) to €925 billion.

As with the P&C sector, North America was the principle development driver for the life insurance coverage phase final 12 months, including €61 billion in new premiums – a development of seven.8% to €840 billion. North American dominance was even clearer within the well being sector, the place the US accounts for about two thirds of world premium revenue.

North American dominance

North America – and particularly the US, which accounts for 94% of the area’s premium pool – has dominated the worldwide insurance coverage market over the past decade, Allianz Trade reported.

More than half of the rise in world premium revenue in P&C and well being was generated in North America. In the life phase, the North American share continues to be barely under a 3rd, with Asia dominating that market.

As a end result, the area’s world share rose from 39.6% in 2012 to 43.9% in 2022, Allianz Trade reported.

That’s in direct distinction to Western Europe, which tumbled greater than six share factors to 23.8%.

Japan fell 3.7 share factors to five.5%, whereas China almost doubled its world share to 11.4%.

Inflation continues to chunk

Navigating the inflationary setting would be the business’s largest financial problem over the approaching years, Allianz Trade reported.

Still, premiums are predicted to extend by 5.2percentpa over the subsequent decade, including €4,190 billion to the worldwide premium pool. In 2033, premium revenue is projected to hit €4.3 trillion in life, €3.1 trillion in P&C and €2.3 trillion in well being.

Have one thing to say about this story? Let us know within the feedback under.