Non-life insurance premiums to surge to $7t by 2022: Swiss Re

General insurance premiums to rise to 10% above pre-COVID-19 levels in 2021.

The rising demand for insurance will see the global non-life insurance premiums reach $7t in 2022 for the first time ever according to a report by Swiss Re.

Swiss Re also predicted that general insurance premiums will rise to 10% above pre-COVID-19 levels. The growth in premiums is mainly driven by increased exposures, risk awareness, and evolving needs of clients.

“There is a clear recognition that claims’ frequency and severity is rising as demonstrated by recent natural catastrophes or cyber incidents. This means the need for protection is growing, and the industry has important work to do in offering insurance and closing the protection gap,” Swiss Re’s CEO Reinsurance Moses Ojeisekhoba said

Swiss Re also warned that reinsurers and insurers need to prepare for elevated inflation risks. Consumer price inflation pressure is expected to remain high in the near term and medical and wage inflationary pressures, which are particularly relevant for non-life claims inflation, are expected to build up in the medium term.