The multiple large natural catastrophe events this year and the current low prices could push prices in non-life insurance and reinsurance to increase next year and in 2019, according to a report released by Swiss Re Institute.
The report, Global insurance review 2017 and outlook 2018/19, forecasts global non-life premiums to rise by at least 3% and life premiums by about 4% in real terms annually in 2018 and 2019.
It expects the emerging markets, particularly in Asia, to continue driving the premium volume gains.
In the second half of this year, a string of large natural catastrophes resulted in significant losses in property and casualty insurance and reinsurance.
This could lead to rate hardening next year and in 2019, said Kurt Karl, Swiss Re’s group chief economist.
He added that that while the ultimate volume of losses is not yet known, it appears to be large enough to cause price increases beyond the affected sectors.