
Swiss Re executives have identified critical challenges and growth opportunities for the re/insurance industry as 2025 approaches. Key concerns include geopolitical instability, social tensions, and economic uncertainty, which could lead to increased claims. Natural disaster losses remain significant, with 2024 marking the fifth consecutive year of insured losses exceeding $100 billion, a trend that is likely to persist.
Social inflation continues to pressure liability claims in the U.S., with a 57% increase over the past decade and a growing frequency of jury awards exceeding $10 million. However, life insurance is emerging as a growth driver, with global premiums projected to grow by 3% annually in 2025 and 2026. Fixed income yields and interest rates are supporting profitability and presenting opportunities for balance sheet optimization in the life and health insurance sectors.
Swiss Re leaders emphasize the need for innovation in commercial insurance. Companies are adapting to climate and social inflation-driven loss trends while exploring alternative risk transfer solutions. Reinsurers are urged to provide not just financial support but also insights and tools to enhance risk awareness and management.