Swiss Re Foresees Rising Premiums Amid Increasing Global Risks

In a comprehensive analysis, Swiss Re Institute predicts that global property and casualty insurance premiums will rise in tandem with GDP over the upcoming decade.

This growth is driven by amplified natural catastrophe losses, asset accumulation, and heightened economic and litigation claims inflation.

The institute's report outlines the evolving insurance landscape amid increasing global risks.

The report anticipates reduced market concentration with heightened competition. It highlights an emerging trend where brokers and managing general agents are becoming more integral in distribution and underwriting processes. By leveraging these entities, insurers can access specialised skills and scale efficiently.

The global property and casualty market has experienced significant expansion, doubling over the past two decades to reach a value of $US2.4 trillion ($3.6 trillion). With ongoing innovation expanding coverage access through both traditional and alternative methods, projections indicate that the market could grow to $US4.3 trillion ($6.5 trillion) by 2040.

Furthermore, captive insurers are estimated to control $US60-$US80 billion ($91-$122 billion) in global premiums. These entities enable corporations to self-insure frequent risks while utilising reinsurance for major exposures. Meanwhile, insurance pools and mechanisms like US fair access programs and wind pools are increasingly addressing market volatility by ensuring availability where traditional options may be limited.

Swiss Re's Group Chief Economist, Jerome Jean Haegeli, notes that pricing, risk management, and transformation have become more efficient within the insurance sector. This efficiency supports capacity even as uncertainties rise, with insurers increasingly shifting risk burdens to reinsurers. This trend reflects growing demands for risk transfer amid an evolving risk landscape.

The report, titled "Growing Stronger: How the Property and Casualty Market Adapts to a Riskier World," highlights a marked 7% compound annual growth rate in reinsurance premiums over the past decade, outpacing the 4.2% rate in primary property and casualty insurance.

Swiss Re's findings were shared during the Reinsurance Rendezvous in Monte Carlo, providing a backdrop for industry stakeholders assessing and adapting to the complexities of a riskier global environment.

Published:Wednesday, 10th Sep 2025
Source: Paige Estritori

Share this news item:

Insurance News

Cyber Insurance Becomes Essential Amid Rising Digital Threats

12 Sep 2025: Paige Estritori

The recent cyberattack on Fortnum Private Wealth, accompanied by ASIC's legal action, has spotlighted the critical risks cyber threats pose to financial advice companies in Australia. With digital integration intensifying across the finance sector, the owner of Fortnum, Entireti, plans to defend the case, underscoring the necessity for ongoing vigilance in cybersecurity measures. - read more

Swiss Re Foresees Rising Premiums Amid Increasing Global Risks

10 Sep 2025: Paige Estritori

In a comprehensive analysis, Swiss Re Institute predicts that global property and casualty insurance premiums will rise in tandem with GDP over the upcoming decade. This growth is driven by amplified natural catastrophe losses, asset accumulation, and heightened economic and litigation claims inflation. The institute's report outlines the evolving insurance landscape amid increasing global risks. - read more

Insurance Council of Australia Assists NSW Flood Claimants

09 Sep 2025: Paige Estritori

In response to the devastating floods that swept across New South Wales' Mid North Coast in May, the Insurance Council of Australia (ICA) is taking proactive steps to support the affected residents. Insurers, organised by the ICA, will be meeting with flood victims in Kempsey, Taree, and Port Macquarie to provide guidance and support as they navigate their insurance claims. - read more

Ombudsman Upholds Policyholder’s Claim Despite Fraud Allegations

08 Sep 2025: Paige Estritori

A motor insurance policyholder has won a significant dispute over fraud allegations, with the industry ombudsman ruling in favour of a payout following a controversial car accident claim. The case revolved around an incident where the claimant's wife crashed at an intersection one evening, reportedly failing to yield. The lack of photographic evidence due to shock and subsequent involvement of towing services complicated matters. - read more

NM Insurance Secures Growth with Five-Year Zurich Partnership

05 Sep 2025: Paige Estritori

In a strategic move set to bolster its market position, NM Insurance has announced a five-year agreement with capacity provider Zurich, positioning itself for further growth and increased broker confidence in its success. Since its establishment two decades ago as Nautilus Marine Insurance Agency, NM Insurance has expanded its focus beyond the recreational boat market in Australia, branching into New Zealand and diversifying into the commercial marine, caravan, and motorcycle sectors. - read more

Click for more Insurance News

Real Estate Agents Insurance Articles

Common Real Estate Risks and How to Mitigate Them with Insurance

In the vibrant world of real estate, understanding and managing risks is crucial for success. Real estate agents face a variety of risks that can impact their reputation, financial stability, and client relationships. Navigating these risks effectively is essential for maintaining a thriving business and ensuring client satisfaction. - read more

Common Insurance Pitfalls for Real Estate Professionals

As a real estate professional, safeguarding your business through adequate insurance is crucial. The real estate industry is fraught with risks, from property damage to client disputes, and insurance serves as a safety net, ensuring that you're protected against unforeseen circumstances. - read more

Understanding Income Protection Insurance for Real Estate Professionals

Income protection insurance is designed to provide financial support if you're unable to work due to illness or injury. It ensures a portion of your income continues to be paid during times when you cannot earn. This type of insurance acts as a safety net, offering peace of mind by securing your financial stability during challenging times. - read more

Top 5 Risk Management Strategies Every Real Estate Agent Should Know

In the ever-changing world of real estate, understanding and managing risks are crucial tasks for any real estate agent. From fluctuating market conditions to regulatory shifts, several elements can affect the value and profitability of property investments. Effective risk management practices are essential for protecting assets and ensuring long-term success in this dynamic industry. - read more

Navigating the Risks: Essential Insurance Solutions for Real Estate Agents

In the dynamic world of real estate, managing risks is as crucial as closing a sale. Real estate agents in Australia constantly navigate a landscape full of potential pitfalls, from market fluctuations to client disputes. Understanding these risks and having strategies to manage them is essential for a successful career. - read more

Knowledgebase

Underwriting:
The process by which an insurer determines the risk of insuring a client and decides the terms of coverage.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008, authorised Financial Services Representative of Unique Group Broker Services Pty Ltd, Australian Financial Services License 509434. Visit the ASIC website for additional licensing information.

IMPORTANT: We are neither authorised nor licensed to provide finance or finance products. We do not recommend any specific financial products and we do not offer any form of credit or other financial advice. All product enquiries and requests for financial and/or other advice on this website are referred to third party, qualified intermediaries with whom you can deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third part to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs.