Premium in Australia and other advanced Asia-Pacific economies grew 2.9% last year, according to Swiss Re’s latest Sigma report.

Growth is predicted to slow to 2.1% this year, partly due to moderating price increases in Australia.

The report – titled World Insurance in 2025: A Riskier, More Fragmented World Order – says the highest US trade tariffs since the Great Depression will have widespread impacts.

“Global growth is slowing at a time of large macroeconomic regime shifts. Trade wars and protectionism leave no winners, but over the longer term will relocate trade and production globally.”

The report says the US tariffs have led to “extreme policy uncertainty” for global commerce.

“The long-term shift towards fragmentation of economies and markets implies serious risks and costs for insurance. Trade barriers and supply chain disruptions or reshoring may push up inflation for prolonged periods, feeding into higher claims costs.

“Restrictions on free capital flows for (re)insurers can lead to inefficient capital allocation, higher capital costs and higher insurance prices, possibly curtailing insurability of peak risks.”

The report says premium in Australia totalled $114.1 billion last year – $98.38 billion for property and casualty, and $15.71 billion for life.