The global insurance industry is expected to produce above-average growth, aided by improved economies in the US and other developed markets, Munich Re says.

Sturdy growth in “emerging” economies including Brazil and Russia is also lifting the industry’s prospects.

In the primary insurance market, premium growth of 4.5% is projected for this year and next year, outpacing the almost 2% average rise of the past decade.

“In most of the industrialised world – in the eurozone, the US and Japan – demand has been bolstered by a solid economic environment,” Chief Economist Michael Menhart said.

“The economies of many emerging markets, such as Brazil, but even Russia, are experiencing a significant recovery. This is leading to increased growth in property and casualty insurance.

“Growth prospects for insurers are therefore looking a little brighter worldwide.”

Premium volume in property and casualty business is tipped to grow an average of 4% this year and next year.

Emerging markets’ share of additional premium volume is set to reach 47% by 2025, up from 20% last year.