Global premium will grow by 2.3% in the next two years as the world economy enters an expansionary phase, Swiss Re Institute says.

The reinsurer forecasts the non-life sector will record real premium growth of 1.7% next year and 2.5% in 2027, with solid profitability based on higher investment yields and disciplined underwriting.

The push by countries to reindustrialise, plus technological transformation, will power activity and support underwriting.  

Globally, life premium will grow 2.5%, with high long-dated bond yields underpinning investment income and strengthening profitability, the institute says.

It notes population ageing is reshaping life protection needs, with demand shifting from family protection to longevity, retirement income and health solutions, requiring insurers to innovate and extend cover across longer life spans. 

Insurers are investing in artificial intelligence to achieve efficiency gains and improve workflow, with 3%-8% of IT budgets allocated to developing AI capabilities.

Swiss Re Institute does not expect job losses in the near term, saying insurers want to use AI to augment rather than replace staff processes.

“One of the main challenges for insurers will be to model and price risks with no historical precedent while leveraging AI’s potential to improve underwriting, claims and productivity.”