Report: global insurance survey shows booming life business

The Swiss Reinsurance company of Zurich reported this week that world insurance in 1997 showed a booming life business but stagnating non-life business.

The Swiss Reinsurance company of Zurich reported this week that world insurance in 1997 showed a booming life business but stagnating non-life business.

In a study of markets in 86 countries — the most comprehensive analysis of the global insurance industry — Swiss Re says that worldwide premium volume rose to $2129 billion from $2016 billion in 1996, representing an increase of 1.1 percent on a U.S. dollar basis.

The study says this modest growth rate is somewhat deceptive as the development in some countries was, on average, clearly positive.

Measured in original currencies, premium volume in 1997 increased by 4.5 percent after adjustment for inflation. The direct insurance sector experienced clearly higher real growth than the global economy ( 3.1 percent).

The increase of 4.5 percent came entirely from the life insurance sector ( 7.7 percent). Non-life business in contrast remained virtually stagnant ( 0.2 percent).

While life business grew at its highest rate for nine years, non-life business recorded its lowest growth in ten years.

In 1997, Switzerland spent the most on insurance with $4289 per inhabitant. Japan was again beaten into second place with an average of $3896.

Most industrialised countries had an insurance density in 1997 in the range of $1200 to $2500.

In most emerging markets, per capita insurance spending was less than $100, with far more being channelled into non-life policies.

On average, $423 was spent per capita on insurance worldwide in 1997, of which $177 went on non-life insurance and $246 on life insurance.