China will drive the recovery of the global insurance market in the coming years, according to Switzerland-based insurance company Swiss Re. The insurer in its report said that premiums in China will grow at an estimated rate of 10 percent in non-life business and by 8.5 percent in the life business next year.
The report, titled ‘Rebuilding better: global economic and insurance market outlook 2021/22’ also points out that the global premium volume is set to decline by 1.4 percent this year due to the coronavirus pandemic. However, they are expected to grow by 3.4 percent in 2021 and by 3.3 percent in 2022.”
Swiss Re expects China to be the world’s fastest-growing insurance market. This is mostly attributed to the growth of its health insurance business which received a boost this year as a result of the coronavirus pandemic.
Andreas Berger, chief executive at Swiss Re Corporate Solutions told the media, “Market conditions from both the demand and supply sides point to continued pricing strength. The low-interest rate environment and the ongoing social inflation in the US will be key drivers of market hardening.”
According to UK-based data and analytics company GlobalData’s report published in September, China’s general insurance industry is forecasted to grow at a rate of 3.8 percent in 2020.
The market recorded a growth rate of 5.7 percent in 2019. The report revealed that China’s general insurance industry is predicted to grow at CAGR rate of 5.2 percent during the period between 2019 and 2023. However, prior to the pandemic, the industry was expected to grow at a rate of 8.6 percent.