Life stays largest insurance coverage phase
Whole 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 Commerce.
Life remained the biggest 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 worldwide inflation fee of 8.6%, Allianz Commerce stated.
The three segments fared fairly in a different way when it got here to progress. Whereas P&C grew at a strong 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.
The rise in P&C premiums was pushed by all areas of the world. Nevertheless, greater than half (€77.5 billion) of final 12 months’s world enhance got here from North America alone. With premium revenue of €860 billion, North America stays the biggest market on the earth by a big margin, Allianz Commerce stated.
Asia additionally noticed vital progress of 8.4% (€31 billion) final 12 months. With complete premium revenue of virtually €403 billion, Asia overtook Europe for the primary time final 12 months.
Life insurance coverage sector woes
Whereas P&C loved sturdy progress, the life insurance coverage market took successful final 12 months, notably in Western Europe, the place premium revenue fell by nearly 3% (€22 billion) to €740 billion in 2022.
Sector progress 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 primary progress driver for the life insurance coverage phase final 12 months, including €61 billion in new premiums – a progress 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 Commerce reported.
Greater than half of the rise in world premium revenue in P&C and well being was generated in North America. Within the life phase, the North American share continues to be barely under a 3rd, with Asia dominating that market.
Consequently, the area’s world share rose from 39.6% in 2012 to 43.9% in 2022, Allianz Commerce reported.
That’s in direct distinction to Western Europe, which tumbled greater than six proportion factors to 23.8%.
Japan fell 3.7 proportion factors to five.5%, whereas China almost doubled its world share to 11.4%.
Inflation continues to chunk
Navigating the inflationary surroundings would be the trade’s greatest financial problem over the approaching years, Allianz Commerce reported.
Nonetheless, 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.
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