Global insurance industry
Tuesday, May 6, 2008 | | |Global insurance premiums grew by 8.0% in 2006 (or 5% in real terms) to reach 3.7 trillion dollars due to improved profitability and a favourable economic environment characterized by economic growth solid, moderate inflation and strong equity markets. Profitability improved in both life and non-life insurance in 2006 compared to the previous year. Life insurance premiums grew by 10.2% in 2006 as demand annuity and pension products rose. Non-life insurance premiums grew by 5.0% due to growth in premium rates. During the last decade, global insurance premiums grew by more than half the annual growth ranged between 2% and 11%.
The advanced economies account the bulk of global insurance. With premium income of $ 1485bn, Europe was the most important region, followed by North America ($ 1258bn) and Asia ($ 801bn). The four countries accounted for almost two-thirds of premiums in 2006. The USA and Japan alone accounted for 43% of world production insurance, much higher than their 7% share of the global population. Emerging markets accounted for more than 85% of the world population but only generated about 10% of premiums. The volume of insurance business UK amounted to $ 418bn in 2006, representing 11.2% of total premiums.
The advanced economies account the bulk of global insurance. With premium income of $ 1485bn, Europe was the most important region, followed by North America ($ 1258bn) and Asia ($ 801bn). The four countries accounted for almost two-thirds of premiums in 2006. The USA and Japan alone accounted for 43% of world production insurance, much higher than their 7% share of the global population. Emerging markets accounted for more than 85% of the world population but only generated about 10% of premiums. The volume of insurance business UK amounted to $ 418bn in 2006, representing 11.2% of total premiums.
