Global Trends

The decision whether to operate purely on a domestic basis or to expand globally is a key one for many companies. Cultural, economic, political and regulatory differences can make for a challenging global environment. For those considering a global presence, the good news is that world insurance premium growth in 2006 accelerated, with total premium volume growing by 5 percent, according to a study from Swiss Re sigma. However, the same study indicates the world insurance outlook for 2007 is mixed. While healthy growth is expected to continue in life insurance, boosted by solid development of savings and pensions products, Swiss Re notes that premiums in non-life are expected to stagnate. Overall profitability is set to remain robust. As always, the findings of this annual world insurance report reflect contrasting growth between life and non-life sectors. For example, 2006 saw the life insurance market grow by 7.7 percent, while global non-life business grew by just 1.5 percent. There was also a sharp divergence in performance between the industrialized world and the emerging markets. For non-life the industrialized world saw marginal growth of 0.6 percent, while the emerging markets saw robust growth of 11 percent. For life insurance, industrialized countries produced growth of 6.6 percent, while growth in emerging markets was 21.1 percent. For further info check out I.I.I.’s international insurance site.  

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