Swiss Re: P&C Insurance Premiums to Reach $4.3T by 2040
A new sigma report notes that P&C business will become more volatile as portfolios shift to higher risk lines.
Over the next 20 years, property and casualty (P&C) insurance is poised to undergo “fundamental transformation” as the market becomes riskier and more complex, according to the Swiss Re Institute’s most recent sigma report, “More risk: the changing nature of P&C insurance opportunities to 2040.” As a result of changing conditions, Swiss Re predicts global P&C premiums will more than double from $1.8 trillion in 2020 to $4.3 trillion in 2040, with property insurance becoming the fastest-growing business line and motor insurance remaining the largest market.
“With the global portfolio shifting from lower risk motor insurance to higher risk lines, P&C insurance business will become more volatile. At the same time, risk modeling will become more complex, which will lead to higher capital requirements and an increased demand for reinsurance. In this fundamentally different risk environment, reinsurers will play a crucial role in keeping risks insurable,” said Swiss Re’s Head of Global Reinsurance Gianfranco Lot in a release.
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