2007 will be another profitable year for non-life insurance, according to Thomas Hess, Swiss Re's chief economist.
“A key to sustaining these attractive profits will be for the insurance industry to remain disciplined towards competition and pricing,” he said. Speaking at Swiss Re's annual review, Hess noted that 2006 appears set to be an excellent year for insurance, with few catastrophe losses, double-digit profits and renewed investor interest in insurance stocks.
For the life industry, Hess also forecasts positive developments in 2007. Growth will be robust at around 4.5%, and profitability will gradually continue to improve. Further consolidation in the life sector will continue to drive the increasing trend in the US and Europe for transferring closed blocks of life business to third parties to administer.
Swiss Re also highlighted the leading role that re/insurers can play in providing insurance for emerging markets to cover natural hazards. Talking about the reinsurer's involvement in public private partnerships, Roger Ferguson, head of Financial Services, said: “Strong partnerships can narrow the gap between economic and insured losses in case of natural disasters, stabilising government finances and providing immediate relief to victims.”
