Overview of the insurance market According to the data released by the Munich Re Economic Research, the global insurance sector is expected to grow stronger in the year 2019. The average percentage growth is expected to be approximately 5.3% which is equivalent to €460bn. When adjusted to inflation, this growth is roughly 3.7%. This figure is actually higher than the anticipated global GDP growth rate which is around 3.3% after inflation adjustments. Life insurance, in specific, seems set for strong growth after the past years of weak progression.
Property casualty insurance is also gaining some substantial ground to have a huge upsurge due to the favorable economic environment. Actually, this insurance premium is expected to have a 3.9% growth in the year 2019. Developing countries are the major drivers of this growth although industrialized and already developed countries have also contributed a lot to this positive development. While reporting the long-term perception of the insurance industry in general, Munich Re Economic Research stated that the future of this sector is bright since it is anticipated to hit a value of €8tn by the year 2030. This is a double-figure when compared to the current worth of the industry.
Property –Casualty Insurance This category of insurance covers the property owned by an individual such as a car, home, and many others. It also provides liability coverage to offer protection once a person has been found legally responsible for an accident which might have caused damage to other people. Motor trade insurance is a good example of this type of cover scheme. Under this program, the key parties along the distribution line as well as repair and maintenance of motor vehicles are protected. These include the vehicle mechanics, car sellers, and the motor vehicle body shops.
According to the report by the Munich Re Economic Research, the growth rate of this Property –Casualty Insurance is postulated to be 2% in the year 2019 in the entire of United States. However, in Latin America, particularly Brazil, the recovery of the economy in that region might lead to the huge growth rate of the premiums to as much as 4% in adjusted inflation figure. In the Asian region, a slight improvement is also expected but the premeditated VAT increase in Japan might dwindle the premium growth. InNorth Africa increased constant growth is also expected while normalization is anticipated in sub-Saharan countries as a result of strong economic growth. Click here to know more about this
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Basically, the insurance sector is at its prime period and more growth is anticipated. This is due to the increased sensitization on the importance of this industry especially in the developing countries where the acceptance has been slow. However, with the increased economic activities as well as enlightening of the public on the importance of undertaking insurance schemes, more revenue is expected to be generated. For developed countries, diversification is also gaining root as the emerging areas such as the gig economy and self-driving cars also require some form of insurance. For now, there are bright expectations from this sector.