Swiss Re reports on premiums

The latest sigma report from Zurich-based reinsurer Swiss Re has shown a 17.1-per-cent rise in the total premiums of 13 Middle East and North African (MENA) markets in 2011, taking the total combined figure to US$31.4 billion (a 0.7-per-cent share of global premiums). These markets also showed an 18-per-cent year-on-year increase in non-life premiums, while life insurance maintained a relatively small 15.9-per-cent share of total premiums. Of the 13 markets, Iran accounted for the largest portion of total premiums in 2011 with 26.3 per cent, followed by the United Arab Emirates (UAE) with 21.1 per cent. Iran also showed the highest growth rate – 43.3 per cent –while Egypt was the only market to report negative growth, with -0.4 per cent. Meanwhile, the reinsurer has reported that insurance premiums in Australia and New Zealand rose significantly above the national average last year, despite deteriorating profitability. Life premiums increased by 2.2 per cent in both countries, although premiums decreased globally by 2.7 per cent, while non-life premiums grew by 3.7 per cent in New Zealand and nine per cent in Australia. “Growth of Australian and New Zealand life insurance markets should remain stable in the near future as the economies steadily recover from natural disasters,” said Kurt Karl, Swiss Re’s chief economist. “Rising disaster awareness, the higher than expected frequency of catastrophic events and increased risk management preparedness measures are putting upward pressure on premium and reinsurance rates.” Swiss Re also expects 2012 to see robust growth in the non-life market, as prices harden in support of premium growth.