Life premium growth in Australia and other advanced Asia-Pacific economies is expected to hit 0.4% this year and 1.1% next year, according to Swiss Re.

Easing cost-of-living pressures and repricing of disability income policies should underpin 1.7% real growth this year in the Australian market, the reinsurer says.

Incurred claims should remain stable in 2025-26, but last year’s gains from post-covid reserve releases are unlikely to be repeated.

“Investment returns are expected to stay above pre-pandemic levels on elevated bond yield,” Swiss Re said in its latest Sigma report.

Life premium volume in Australia was $US10.36 billion ($15.8 billion) last year, down 33.6% on the previous year, according to the paper.

Swiss Re expects global primary life insurance premium growth to slow to 1% this year in real terms, after a 6.1% gain last year.

“Protection business should stay resilient unless uncertainty weighs on economic growth and labour markets for an extended time.

“Resilient demand for spread-based business, rising investment returns and mortality rate reversion to pre-pandemic norms underpin a positive profitability outlook.”

Access the report here.