In 2025, social inflation remains a top concern for insurers and reinsurers. Swiss Re noted that US liability claims have increased by 57% in the past decade, and nuclear verdicts are rising in frequency, with jury awards above US$10 million.
The Swiss Re Institute identified other key themes shaping the re/insurance industry. Geopolitical instability, social tensions, and economic uncertainty are having far – reaching impacts, potentially driving up claims. Natural catastrophe losses continue to increase; 2024 marked the fifth consecutive year with insured losses over US$100 billion, and the trend shows no signs of abating. Life insurance drives global premium growth as interest rates remain higher for longer, with a forecasted 3% annual growth in 2025 and 2026.
The three business unit CEOs shared their views. Urs Baertschi, CEO of P&C Reinsurance, emphasized the importance of protecting people in times of need. Amid geopolitical uncertainties, risks are getting more severe, and protectionist policies may slow growth, lead to inflation, and disrupt supply chains. Insurers need reinsurer support beyond traditional risk transfer. Ivan Gonzalez, CEO of Corporate Solutions, highlighted three key themes in the commercial insurance space. Corporations will adapt to loss trends, insurers need to find innovative ways to support clients, and the balance between primary insurance, reinsurance, and alternative risk transfer solutions will be crucial. Paul Murray, CEO of L&H Reinsurance, expects life and health insurers to continue growing in 2025, with good profitability prospects as inflation moderates, and sees opportunities for life insurers to use reinsurance to optimize their balance sheets.
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