Worldwide general insurance premium grew 2.5% last year, according to the International Association of Insurance Supervisors (IAIS).

Its Global Insurance Market Report says this compares with a 2.8% increase in 2014.

“Non-life insurance premium growth in emerging markets slowed down notably, reflecting weaker economic growth. Insurance premium growth will probably continue to be driven mainly by emerging markets and developing economies.

“Although they are likely to face diminishing growth in the coming years, affecting demand for non-life insurance products, overall economic growth is still expected to remain well above growth rates in the advanced economies of the US, Japan or Europe.”

The report says higher real estate prices will aid the drive for more premium, but again there is uncertainty, with downturns in Chinese property and stock markets.

“Higher levels of debt pose questions about financial stability and whether some emerging markets face the risk of a crisis,” the report says.

Insurance industry profitability is also under pressure due to low interest rates and GDP growth.

“Regulatory and accounting changes continue to challenge insurance companies,” the report says. “In Europe, insurers and supervisors alike are consumed by the preparation and implementation of Solvency II.”

The IAIS says the US property and casualty insurance industry’s combined operating ratio improved by 1.2 percentage points to 97.8% last year.

In Europe general insurance underwriting results remained stable, with the combined operating ratio averaging about 95% in the first half of last year.

“Japan and Australia had strong underwriting results,” the report says.