Globally, the total amount of non-life insurance premiums (P&C Property and Casualties) is set to double, from the current 1.8 trillion dollars paid annually to 4.3 trillion dollars by 2040. Swiss Re reinsurance in the study “More risk: the changing nature of P&C insurance opportunities to 2040”.
In particular, a robust expansion is expected for the property branch over time, with an estimated + 5.3% for this year and global premium income that should rise from the current $ 450 billion up to $ 1,300 billion in the year. 2040. The development of this sector, says the Swiss Re report, is strongly linked to the trend of the economic cycle, which could contribute up to 75% of the increase, or up to 616 billion dollars in additional premium income. Climate-related risks will cause a 22% increase, or $ 183 billion more.
The traditionally low-risk and high-volume automotive sector currently continues to make up the lion’s share of the entire P&C sector. However, due to improvements in safety standards, the adoption of intelligent technologies and the foreseeable decline in claims, the percentage share of P&C premiums as a whole is expected to decrease from the current 42% to 32% in 2040. In absolute terms , on the other hand, the collection should go from 766 billion dollars in 2020 to 1,400 billion in 2040.