15th December 2020
Olivier Aeschlimann, Senior Financial Analyst
According to the Swiss Re Institute, insurance premiums collected in 2020 have globally contracted by -1.4%. However, they should rebound by +3.4% in 2021 and +3.3% in 2022. Indeed, the recovery will be supported by increased awareness of the risks following the pandemic. That said, the industry as a whole will need to revisit its models as insurers have faced an unexpected flow of business interruption claims that were not factored into their risks models. Swiss Re estimates that the insurance industry will have to bear damages of USD 50 to 80 billion. In the future, insurance companies will have to help create more inclusive and resilient economic growth by expanding their digital offerings. Better data analysis should help understand customer needs and deliver tailor-made and flexible offers such as pay-as-you-go covers. Thus, global economy will be able to better withstand future shocks.