NON-LIFE PREMIUMS ROSE 1.5% IN REAL TERMS LAST YEAR

Worldwide non-life premiums in non-life rose 1.5% in real terms to $1,514bn, according to the latest sigma report from Swiss Re. The report noted that the headline figure “masks a sharp divergence in performance” between the industrialised world, which recorded growth of 0.6%, and the emerging world, which saw growth of 11%. The report claimed that strong economic development and the introduction of mandatory cover in several sectors and geographies had contributed to premium growth. It was observed that downward pressure on rates was not equally counterbalanced by a growth in demand. Hong Kong, Singapore, Taiwan and South Korea were reclassified by Swiss Re as industrialised countries for 2006, raising the premium share of the industrialised world to 92% from the previous 87%. The sigma report said that for 2007, premiums in the non-life sector were expected to stagnate, with combined ratios expected to deteriorate slightly.