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Latest sigma report predicts market hardening and higher interest rates will be silver lining for insurers as global economy slows

Inflation continues to be the key concern for insurers according to Swiss Re Institute’s latest sigma report published today (17 November 2022). The effect of inflation on the global economy has led to total global insurance premium falling slightly by an estimated 0.2% in real terms in 2022. Looking forward, Swiss Re Institute expects the insurance industry to return to premium growth of 2.1% annually on average in real terms in 2023 and 2024, supported by a combination of easing inflation, market hardening in property and casualty lines, as well as stronger life insurance demand. A silver lining for the insurance industry comes from central bank interest rate increases that are expected to improve investment results over the medium term.