Swiss Re exec forecasts rise in primary insurance demand

LONDON — Demand for primary nonlife insurance likely will increase in the next two years, according to Swiss Re Ltd.'s chief economist, Kurt Karl.

An expected moderate strengthening in global economic growth in 2016 and 2017 will support insurance growth, Mr. Karl said during a briefing in London on Tuesday.

Global primary nonlife premium growth is forecast to be 3% in 2016 and 3.2% in 2017, compared with 2.5% this year, Mr. Karl said.

Emerging markets in particular are expected to see an uptick in demand for nonlife insurance, he said.

An increase in wages, health care costs and inflation in the United States, as well as certain other economies, likely will lead to an uptick in demand and a firming of rates for casualty insurance coverages over the next couple of years, Mr. Karl said.

The softening seen in property catastrophe reinsurance rates is likely to moderate or stop as reserve releases slow, among other factors, he said.