The global insurance industry gained momentum last year thanks to “very strong growth” in Oceania and “solid” results in western Europe and Japan, Swiss Re’s latest Sigma report shows.

These regions offset yet another year of contraction in North America.

Total premium written globally grew 3.7% last year to $US4.78 billion ($6.24 trillion) after five years of stagnation.

Non-life premium increased 2.9% to $US2.12 billion ($2.77 trillion), compared with 2.7% growth in 2013.

The economic environment for insurers improved only marginally last year, Swiss Re says – global GDP grew 2.7%, close to the 10-year average of 2.8%.

In Oceania, including Australia, non-life insurance premium growth eased to 2.6% from 5% the previous year.

In Australia, non-life premium grew 2.2% – less than half the 5.7% growth achieved in 2013.

Motor and personal property premium growth eased and commercial property insurance premium declined.

Professional indemnity and employer liability premiums were “sluggish”, but growth in public and product liabilities was “solid”, Swiss Re says.

Non-life insurers reported a 9.1% drop in after-tax net profit last year, reflecting rising claims due to the Brisbane hailstorm in November and weaker investment yields.

In New Zealand, non-life insurance premiums grew 3.9% last year, up from 2.5% in 2013.

Globally, Swiss Re forecasts a bumpy road next year – premium rates are expected to remain low in most markets; North America and western Europe remain “subdued” and the outlook is “challenging” for most key advanced Asian markets; growth in emerging markets is expected to remain stable, with non-life premiums in China expected to benefit from the Government’s push to raise insurance penetration.

Closer to home, Swiss Re says there are challenges ahead.

“Non-life premium growth in Oceania is expected to decelerate this year amid a combination of benign natural catastrophe losses, low underlying claims inflation and ample capacity. An expansive range of regulatory changes present major challenges for non-life insurers in the region.”

Swiss Re gives the example of revised capital standards in Australia, which have led to a 7% increase in the non-life industry’s total insurance concentration risk charge.