Lowest Premium Growth Since 1980`s
Thursday, December 5th, 2002 Auto Liability Life & Health Property Workers' CompensationA new Swiss Re Sigma report released yesterday concluded that overall global premium income reached $2.408 trillion in 2001; while that’s a lot, it’s only a “modest 1 percent growth over 2000,” according to the report — “ the lowest growth rate recorded since the beginning of the 1980s.” The study cited the combination of “continuing turbulence in the financial markets and a high claims burden” as the main causes for the relative decrease in growth last year. The life insurance sector recorded premiums of $1.439 trillion, while the P/C sector accounted for $969 billion. “Adjusted for inflation, the life markets, which had performed well in recent years, suffered a rare decline in premium income of 1.8% in 2001 compared with 2000,” said the bulletin. “In contrast, non-life insurance premiums rose by 5.4% in 2001, a higher growth rate than the previous 10 years had delivered.”
