Global P&C Insurance Premiums Expected To More Than Double To $4.3 Tln By 2040 : Swiss Re Institute

(RTTNews) - Global Property & casualty or P&C premiums are expected to more than double to $4.3 trillion in 2040 from $1.8 trillion in 2020, as the P&C portfolio composition is expected to shift from lower-risk motor insurance towards higher-risk property and liability lines, according to Swiss Re Institute's sigma study.

Property insurance is forecast to grow by 5.3% annually with global insurance premiums rising to $1.3 trillion in 2040 from $450 billion in 2020. Climate-related risks are expected to result in a 22% increase in global property premiums, or up to $183 billion, over the next 20 years as weather-related catastrophes will likely become both more intense and frequent.

As social inflation is expected to drive up the frequency of large verdicts and settlements, especially in the US, liability premiums are forecast to grow by 4.7% per year on average to $583 billion until 2040 from $214 billion in 2020.