Swiss Re Predicts Growth in Global Insurance Premiums

Swiss Re projects global life insurance premiums to grow significantly, reaching $4.8 trillion by 2035, driven by factors such as rising real wages, elevated interest rates, and the ageing population, with individual annuity sales in the US expected to surpass $400 billion in 2024. The life insurance sector is forecasted to expand at an annual rate of 3% in 2025 and 2026, more than double the growth of the past decade. Meanwhile, non-life insurance premium growth is anticipated to moderate to 2.3% annually, influenced by the re-pricing of risk and the rising exposure to natural catastrophes. Despite this slowdown, demand for property catastrophe reinsurance is expected to increase significantly, with at least $10 billion in new demand anticipated for upcoming renewals. Overall, global insurance premiums are set to grow by 2.6% per year in 2025 and 2026, amid geopolitical risks and varying regional economic performances. Swiss Re's forecasts highlight a complex landscape for the insurance industry, balancing growth opportunities with structural challenges.