Posted on 17 May 2013 by Neilson
German reinsurer Munich Re AG is expecting strong growth in the global insurance industry in the years ahead, particularly in emerging market countries, the company said in its insurance market outlook published Thursday.
Growth in the reinsurance market will be slower than in the primary insurance market, Munich Re added.
The property-casualty insurance market will expand by about 50% by the year 2020, while the life insurance market will rise nearly two-thirds, to 3.1 trillion euro ($3.97 trillion), Munich Re predicted.
"Growth in insurance and reinsurance in emerging countries will be significantly stronger than in industrialized countries," Munich Re said.
Nevertheless, around half of all additional premium earned between 2013 and 2020 is expected to come from the U.S., China and Japan, the company said.
This year, growth in the primary insurance market is likely to be just under 3%, and at around 1% for the reinsurance market.
The insurance market outlook is prepared annually by the company's research department based on Munich Re's models and estimates, as well as economic data.