Swiss Re's chief economist Thomas Hess predicted despite a global economic slowdown, 2005 and 2006 would be “quite profitable years” for the general insurance industry.
Hess said over the next two years growth would be “slow” although a global recession seemed “unlikely”.
The improvement in premium rates over recent years, he said, would have a positive influence over 2005 and 2006 and better terms and conditions would reap rewards.
Commenting on the 2005 outlook, Hess said: “insurers are continuing to build financial strength. The focus remains on underwriting quality, even as rates like having peaked, discipline is being maintained.
“As a consequence, prices will stay at attractive levels, while top line growth is likely to be slower than in recent years.”
