Sunday, February 5th, 2023

Allianz International Insurance coverage Report: 2021 was a great yr for the trade

“Thus, 2021 represents an uncommon finish to the previous decade through which progress was a lot decrease (+3.6% per yr on common) and pushed by Asia, which accounted for 40% of all extra premiums, greater than half of them written in China. As a consequence, China’s world market share doubled to 12%,” the report stated.

Learn extra: Allianz: New wave of rising dangers threatens the worldwide transport trade

For this yr, Allianz analysts count on the Ukraine-Russia battle to impression the worldwide insurance coverage trade, forecasting premium earnings to develop by roughly 1 proportion level slower than initially assumed because the battle takes its toll on financial exercise and confidence, at the same time as inflation helps the highest line.

“Total, we now count on world premium earnings to develop by +4.8% in 2022, with life and P&C [property and casualty] growing nearly in step (+4.9% and +4.6%, respectively). This determine should be thought of in opposition to the backdrop of a world inflation charge of 6.2% this yr,” the analysts stated.

Regardless of the uncertainties this yr, Allianz analysts stay optimistic as they count on local weather change and demographic change to be the primary drivers of danger safety demand. In addition they forecast a +4.8% annual progress over the following 10 years (life: +4.9%; P&C: +4.6%), equivalent to a rise in premium earnings by +67% or €2.8 trillion, of which beneath €1.8 trillion shall be generated by the life section and over €1 trillion by the P&C section (+63%).

“The pandemic and the struggle in Ukraine are wake-up requires higher danger administration and much more demand for cover,” stated Ludovic Subran, chief economist of Allianz. “The trade should reach sustaining its financial and social relevance, providing modern options for brand new and rising dangers. The questions of insurability and affordability are prone to develop into more and more pressing within the coming years. This requires a stage of creativity and collaboration with all stakeholders, prospects, carriers, and policymakers even past earlier efforts.”

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