Very few people anticipated a global pandemic occurring, never mind the resulting human tragedy and economic turmoil the world has faced in the last two years. No industry has been immune to its impact but some have certainly been more affected than others. The global insurance industry faced slowed premium growth, falling profits and strong competition from the insurtech industry across 2020.
Fortunately, 2021 brought better news as government support programmes prevented a deep depression with data indicating growth and profits were rebounding. The Allianz Global Insurance report found international premiums grew by more than 5% in 2021 and the outlook was positive for 2022.
Now we are halfway through the year, how is the year panning out for the global insurance industry and brokers that are operating within it?
Despite the pandemic, industry growth is predicted to continue to 2025 at a compound rate of 6% per year, buoyed by strong growth in emerging markets like China and Latin America. There has also been a value shift towards intermediaries in the last decade as public and private investors realise their power in the insurance value chain.
However, 2022 is already presenting some challenges including a combination of political, economic and environmental unknowns which may impact the industry: