sigma No3/2012 – World insurance in 2011

sigmaNo 3/2012

World insurance in 2011Non-life ready for take-off

1 Executive summary

3 Global economy: recovery faded and interest rates very low

6 World insurance: the life sector dragged down overall premium growth

14 Advanced markets: premium growth restricted by weak economic environment

20 Emerging markets: China and India weighed on otherwise solid growth

28 Methodology and data

30 Statistical appendix

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Thomas SeilerTelephone +41 43 285 9277

Daniel StaibTelephone +41 43 285 8136

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1Swiss Re, sigma No 3/2012

The insurance industry faced a difficult economic environment in 2011. While global life insurance premiums fell, non-life insurance prices began to harden in some markets and premiums grew. Overall, direct premiums declined 0.8% in real terms.1 However, direct premiums reached a record high of USD 4 597 billion in nominal terms, increasing 6% over 2010 as the US dollar depreciated against the major currencies. Historically low interest rates and extraordinarily costly natural catastrophe events affected insurers’ overall results. Yet, the insurance industry was able to maintain its capital strength because falling interest rates increased insurers’ asset values but not their liabilities.

Real growth in the world economy slowed to 3% in 2011. After getting off to a strong start, the economy gradually weakened in the second half of the year, undermining demand for insurance cover and leading to a continuation in accommodative monetary policies that kept interest rates low. The economic landscape ahead looks challenging for insurers. Although the emerging markets are set to continue to grow at a fairly robust pace and moderate growth is expected in the US, Western Europe is not likely to emerge from its recession until the second half of 2012.

No data > –20% –20% to –10% –10% to –5% –5% to 0% 0% to 5% 5% to 10% 10% to 20% > 20%

Source: Swiss Re Economic Research & Consulting

Global life insurance premiums shrank 2.7%. Advanced markets contracted 2.3%, with the sharpest decline observed in Western Europe (–9.8%). Meanwhile, the US market resumed moderate growth (2.9%). Japan and the newly industrialised Asian countries grew 4.4% – well above their ten-year average. In emerging markets, premium growth proved robust in most cases, but was negative overall due to steep premium drops in China and India in the wake of regulatory changes that restricted the use of certain distribution channels. The low interest rate environment also continued to weigh on life insurers’ investment results. In 2012, life premium growth is likely to remain sluggish in advanced economies, but is expected to resume in emerging markets as Chinese and Indian insurers adapt to the new regulations.

1 All premium growth rates provided in this study are in real terms adjusted for inflation (measured using local consumer price indices), unless otherwise noted.

Real premium growth in 2011

Markets Life Non-life TotalAdvanced –2.3% 0.5% –1.1%Emerging –5.1% 9.1% 1.3%World –2.7% 1.9% –0.8%

Growth of the world economy slowed and interest rates remained very low.

Figure 1 Total premium real growth rates in 2011

In 2011, global life insurance premiums shrank. The outlook remains sluggish for advanced economies but premium growth in emerging markets is expected to resume.

Executive summary

Swiss Re, sigma No 3/20122

Global non-life insurance premiums grew a moderate 1.9% in 2011. In advanced mar-kets, the unfolding recession in Europe and weak growth in the US in the second half of the year dampened insurance demand. Premiums grew by 0.5%. Emerging market growth remained robust at 9.1%, but also slowed. Overall, non-life insurer results were significantly impaired by the large catastrophe losses in 2011, the worst catastrophe year on sigma record in terms of total economic losses and the second worst ever in terms of insured losses. Nevertheless, the non-life industry’s capital position remains strong. For 2012, growth is expected to remain modest due to the adverse economic environment. Although premium rates in some markets began picking up in 2011, the turn of the cycle is expected to be only gradual and limited to certain markets and lines of business in 2012.

The strongest driver of property penetration2 is GDP per capita. Open economies with a strong rule of law exhibit a higher insurance penetration than others. However, because of differences in risk awareness, a country’s property insurance penetration is not directly related to its exposure to natural catastrophes. Therefore, risk awareness at all levels of society is needed to improve insurance protection for people living in natural catastrophe-prone regions.

The economic outlook remains challenging in 2012. The European debt crisis poses an enduring threat to insurers due to their large balance sheet exposures to banks and sovereign debt. Further increases in already elevated oil prices or a sharp reversal in growth in China could choke off the fragile global recovery.

This sigma study contains the latest market data available at the time of going to press. The final 2011 figures were not available for most insurance markets. Consequently, this sigma also contains Swiss Re Economic Research & Consulting estimates and provisional data released by supervisory authorities and insurance associations.

2 Property insurance penetration is measured as the ratio of property premiums to GDP.

In part due to the euro zone crisis, non-life premium growth was weak in 2011. It is expected to remain modest in the difficult economic environment.

GDP per capita is the most important driver of property insurance penetration. A strong rule of law is associated with higher penetration, too.

The European debt crisis remains a key risk to insurers due to their large balance sheet exposure on the asset side.

Executive summary


The global economic recovery faded in the second half of 2011

Growth of global real gross domestic product (GDP)3 slowed from 4.1% in 2010 to 3% in 2011. In the first half of 2011, the global economy continued to recover at a fairly robust pace. Business and consumer sentiment were positive, credit spreads narrowed, corporate profits recovered further and banks eased their lending conditions. Robust global demand pushed up commodity prices, especially for food and energy. However, due to several factors, the pace of economic expansion slowed, particularly in the second half of the year.

Japan was hit by a devastating earthquake and tsunami in March. The resulting power outages and supply chain disruptions not only plunged the country back into recession but also negatively affected the still fragile recovery in the US. Weakening global demand and the resurgent sovereign debt crisis, particularly its contagion to large peripheral European economies such as Spain and Italy, also caused Europe’s economy to slow. Overall, advanced economies grew only 1.5% in 2011, after growing 2.8% in 2010.

Emerging markets did not entirely escape the slowdown in advanced economies, on which they depend heavily for exports. Although overall economic growth was still slightly above the average for the past decade, it slowed to 5.8% in 2011 (versus 6.8% in 2010). The Chinese economy grew a still very high 9.3% and the Latin American economy expanded 4.1%, above its ten-year average. Riding on the surge in oil prices, the Middle Eastern and Central Asian economies also expanded above trend. In con-trast, given their strong trade and financial interconnections with Western Europe, the Central and Eastern European economies grew below trend. While growth was solid in most countries in Africa, headline figures were depressed due to political turmoil in Egypt and the collapse of the oil-rich Libyan economy in the wake of a political regime overthrow.

0% 2% 4% 6% 8% 10%

Growth rate in 2011

Middle East and Central Asia

Africa

Central and Eastern Europe

Latin America and the Caribbean

South and East Asia

Emerging markets

Oceania

Japan and newly industrialised Asian economies

Western Europe

North America

Advanced markets

World

Real growth rates

0% 2% 4% 6% 8% 10%

Annual average growth rate 2001–2010


Africa



South and East Asia

Emerging markets

Oceania


Western Europe

North America

Advanced markets

World

Remarks: Countries’ GDP weighted with market exchange rates.

Source: Oxford Economics, Vienna Institute for International Economic Studies (WIIW), Swiss Re Economic Research & Consulting

3 The aggregation of the individual economies that make up the global economy is weighted using US dollar GDP (gross domestic product) based on market exchange rates. International statistics using purchasing-power parity show higher world GDP growth rates because they place more weight on fast-growing coun-tries such as China and India.

The economic recovery slowed down significantly in the second half of 2011.

The slowdown was most pronounced in advanced economies ...

… but emerging markets were also affected.

Figure 2Real GDP growth by region

Global economy: recovery faded and interest rates very low


Despite expansionary monetary policies, inflation remained relatively low in advanced economies due to unused industrial capacity and high unemployment. The economic slowdown in the second half of 2011 further softened labour market conditions, thereby reducing wage pressures and further abating inflationary risks. Inflation was more of a concern in emerging markets due to rising food and energy prices in the first half of 2011. Emerging markets also grew close to or above trend, thereby further buoying inflation. However, tightened monetary policies in the first half of the year and the slowdown in economic growth in the second half helped reduce inflationary pressure.

Capital market conditions strengthened insurers’ capital position but reduced investment returns

The aforementioned expansionary monetary policies pushed long-term interest rates to historical lows at the end of 2011, undermining insurers’ investment returns. Although falling interest rates supported the capital position of many insurers by increasing the value of their corporate and government bond portfolios, these capital gains will disap-pear once interest rates rise. Yet, interest rates were not low everywhere. As the Euro-pean debt crisis unravelled, yields rose in Italy, Spain, Ireland, Portugal, and Greece, leading to a capital squeeze for those insurers with a high exposure to these markets.

Long-term interest rates

US Germany France Japan UK

0%

2%

4%

6%

8%

10%

12%

14%

UK

Japan

France

Germany

US

2012

2011

2010

200

9

200

8

2007

200

6

200

5

200

4

200

3

200

2

2001

200

0

199

9

199

8

1997

199

6

199

5

199

4

1993

1992

1991

199

0

Source: Datastream

After performing solidly in the first half of 2011, the major stock markets fell in summer 2011 as advanced economies began to slow and the spectre of a renewed recession emerged. Stock markets remained highly volatile throughout the remainder of 2011 and embarked on a solid path of recovery only at the beginning of 2012.

Inflation, particularly in the emerging markets, was mainly driven by rising food and energy prices.

Long-term interest rates have reached historical lows, bolstering insurers’ capital but eating into profitability.

Figure 3The downward trend of long-term government bond yields for major advanced economies

The stock market recovery in 2011 was interrupted by the European sovereign debt crisis and the deceleration in global economic growth.

Global economy: recovery faded and interest rates very low


40

50

60

70

80

90

100

110

120

MSCI Emerging Markets

France (MSCI France)

Germany (DAX 30)

UK (FTSE 100)

Japan (Nikkei 225)

US (DJ Industrials)

May

12

Mar

12

Jan

12

Nov

11

Sep

11

Jul 1

1

May

11

Mar

11

Jan

11

Nov

10

Sep

10

Jul 1

0

May

10

Mar

10

Jan

10

Nov

09

Sep

09

Jul 0

9

May

09

Mar

09

Jan

09

Share index, local currency, 31 December 2010 = 100

US (DJ Industrials)

Germany (Dax 30)

Japan (Nikkei 225)

France (MSCI France)

UK (FTSE 100)

MSCI Emerging Markets

Source: Datastream

What’s ahead: curbed growth, low interest rates and the European debt crisis

Going forward, the economic environment for insurers in advanced economies will remain challenging. Europe is likely to remain in recession until late 2012, and although the US has avoided a recession, recovery is nonetheless proving slow and fragile. Japan will likely suffer from a strong yen and weak external demand. In the emerging markets, growth is likely to remain solid and self-sustained, but is expected to decelerate during 2012 as global demand weakens. Given their close ties to Western Europe, Central and Eastern Europe will feel the effects of the renewed recession. Meanwhile, Latin America is likely to profit from elevated commodity prices and strong domestic consumption. Weak external demand due to the global slowdown will continue to dampen emerging Asia’s growth prospects. However, internal consumption remains resilient and is likely to continue gaining in importance.

Interest rates are not expected to rise significantly in 2012. As long as inflation expecta-tions remain well contained, the recession-like environment in advanced economies and the slowdown in emerging markets will support a continuation in accommodative monetary policies and keep interest rates low as a result.

The ongoing European sovereign debt crisis remains a key risk. Although the threat of a near-term financial market disruption has weakened, policymakers now must devise a way to make the euro zone more viable in the long run. This implies structural reforms and enhanced fiscal discipline in individual countries together with improved economic and fiscal governance on a European level. However, such structural reforms are politi-cally challenging to implement and take time to become effective. The risk of new set-backs will therefore keep markets volatile in the foreseeable future.

Other key risks to the economic outlook include further increasing oil prices from already elevated levels and a sharp growth reversal in China. Supply disruptions in Iran, Sudan, Libya, and Nigeria pushed up the price of Brent oil from USD 95 at the end of 2010 to about USD 105 at the end of 2011. Oil prices rose further to peak at USD 125 in March 2012. Prolonged high oil prices or even a further rise could particularly under-mine the fragile US recovery. In China, inflation, a potential overheating of the property sector, and excessive local government debt will need to be handled via a balanced monetary and fiscal policy mix in an environment of slower economic growth.

Figure 4Stock market performance since 2009

Growth is expected to be tepid in 2012; recovery is likely to be slow in advanced markets, while emerging markets will see their high growth rates decelerate.

Low interest rates are expected to prevail throughout 2012.

The European debt crisis remains a key risk.

Rising oil prices and a hard landing in China are further concerns.


World insurance: the life sector dragged down overall premium growth

Global insurance premiums contract

Global direct premiums contracted 0.8% in 2011. However, because the US dollar de-preciated against the major currencies, premiums increased 6% in nominal terms to USD 4 597 billion. In advanced markets, premium volume contracted (–1.1%), while barely growing in emerging markets (1.3%). These overall figures, however, mask signif-icant differences across regions and business lines. In advanced markets, for instance, life premiums dropped a staggering 9.8% in Western Europe, while growing 2.3% in North America. In emerging markets, life premiums declined mainly due to new distri-bution regulations in China and India, while strong non-life premium growth continued.

Life insurance premiums accounted for 57% (USD 2 627 billion) of total premiums, down slightly from 58% in 2010. The share is higher in advanced economies (58%) than in emerging markets (52%) mainly due to the low share of life insurance in the Middle East and Central and Eastern Europe.

Real growth rates

–10%

–5%

0%

5%

10%

15%

20%

20

11

20

09

20

07

20

05

20

03

20

01

19

99

19

97

19

95

19

93

19

91

19

89

19

87

19

85

19

83

19

81

Total Advanced markets Emerging markets


Life insurance premiums fell in 2011

Lifeinsurancepremiumdevelopment Global life insurance premiums dropped 2.7% to USD 2 627 billion in 2011. However,

there are remarkable differences in the development of premium income across mar-kets.

In advanced markets, life insurance premiums declined 2.3%, thereby reversing their short-lived recovery in 2010. In the US, where in-force life premiums had been declining massively in recent years, premiums improved modestly in 2011, driven by a rebound in savings products. However, in Western Europe, premiums declined 9.8%. Premiums continued to drop in the UK, and in-force premiums fell sharply in Germany, Italy, Portugal, and France. Among the advanced Asian economies, growth in Japan acceler-ated, underpinned by stronger sales of individual whole life policies and a recovery in sales of annuity products. Hong Kong and Singapore’s life markets remained robust, but business slowed in South Korea and declined in Taiwan on the back of falling sales of variable annuity products.

In 2011, total premiums declined by 0.8%. Premiums contracted in advanced markets and barely grew in emerging markets.

Life insurance premiums amounted to 57% of total premiums in 2011.

Figure 5Premium growth since 1980 shows an overall decline

Although global life insurance premiums fell in 2011, there are remarkable differ-ences across markets.

Life premiums declined in advanced markets overall, while premium growth accelerated in Japan, for example.




In emerging markets, life premium income fell sharply as premium volume shrank in China and India. The introduction of tighter regulations governing bancassurance in China and the distribution of unit-linked insurance products in India resulted in a sharp decline in new life premium growth. Premium income fell 15% and 8.5% in China and India, respectively. In contrast, other emerging regions upheld robust growth. Premium income rose 9.4% in the Middle East and 9.5% in Latin America. Overall, emerging markets’ share of global life premiums decreased slightly from 14.2% in 2010 to 13.9% in 2011.

–15% –10% –5% 0% 5% 10% 15% 20%

Growth rate in 2011


Africa



South and East Asia

Emerging markets

Oceania


Continental Europe

Western Europe

North America

Advanced markets

World

Real growth rates

-15 -10 -5 0 510

15 20



Africa



South and East Asia

Emerging markets

Oceania


Continental Europe

Western Europe

North America

Advanced markets

World


Figure 6Life: real premium growth in 2011

In emerging markets, life premiums fell overall but saw strong growth in the Middle East and Latin America.

Figure 7Life premiums dropped significantly in Western Europe, China and India. Growth was strong in Latin America.



Lifeinsurerprofitabilityandcapitalposition The life insurance industry’s capitalisation declined slightly in 2011, but is still well

above 2008 crisis levels. Balance sheets are solid, although some of the improvement is due to unrealised gains under GAAP accounting principles4 as a result of declining interest rates. Exposure to troubled European peripheral country (GIIPS5) debt is gener-ally very limited, although some insurers in GIIPS countries are under a great deal of stress. Investment portfolios are solid on the whole, hedging programmes have been improved, and products are better priced. Operating margins and the return on equity of life insurance companies have stabilised. Nevertheless, overall profitability remains below pre-crisis levels. Prudent investment strategies, low interest rates, volatile finan-cial markets, and sluggish sales have kept profitability from improving.

Risk capital (2011 USD bn, LHS)

0

200

400

600

800

1000

1200

1400

2011201020092008200720062005200420032002200120000%

10%

20%

30%

40%

50%

60%

70%

Solvency ratio (risk capital/premiums, RHS)

in USD bn

Note: This figure is based on a sample of countries: the UK, Germany, France, Italy, the Netherlands, Switzerland, the US, Canada, Japan, and Australia.


Lifeinsuranceoutlook Life insurers will face some serious challenges in 2012. Growth in advanced markets is

likely to remain sluggish given weak economic expansion that will limit premium growth. In emerging markets, premium growth is expected to recover in 2012, as life premiums in the two key emerging markets are expected to return to positive growth. In India and China, insurers have been adjusting to the new regulations by consolidating their distri-bution channels and restructuring products. Elsewhere, life premium growth should continue to benefit from rising income and increasing risk awareness, particularly in the Middle East and Latin America. Bancassurance as a distribution channel is expected to expand further as savings products and credit life insurance make deeper inroads into Latin America.

Interest rates will remain low for some time to come. Whereas new business can be adjusted to the low investment return environment, old books of business with interest rate guarantees pose significant risks to profitability.

4 GAAP stands for “Generally Accepted Accounting Principles”.5 Greece, Italy, Ireland, Portugal, and Spain.

Life insurer profitability remains low, but capital is solid. Prudence is needed going forward.

Figure 8 Risk capital and solvency development in life insurance

Life insurance business in emerging markets is expected to recover, but growth remains sluggish in advanced markets.

Continued low interest rates pose significant risks to profitability.


Non-life: ready for take-off as prices begin to harden

Non-lifeinsurancepremiumdevelopment Overall, at 1.9%, non-life premium growth in 2011 remained robust (2010: 1.9%).

Growth was supported by gradually increasing prices in certain markets and lines of business. Costly natural catastrophe events in Japan, New Zealand, and Australia led to significant rate increases in property markets. Rates increased in other advanced markets as well, partially offsetting the effects of the weak economic environment. In emerging markets, premium growth was mostly driven by robust economic growth.



Non-life insurance markets in emerging economies outpaced their equivalents in advanced economies, but the growth differential shrank in 2011. The only region outperforming its ten-year average growth rate was Latin America, where most markets reported solid growth.

–4% 0% 4% 8% 12% 16%

Growth rate in 2011


Africa



South and East Asia

Emerging markets

Oceania


Continental Europe

Western Europe

North America

Advanced markets

World

Real growth rates

-4 0 4 8

1216



Africa



South and East Asia

Emerging markets

Oceania


Continental Europe

Western Europe

North America

Advanced markets

World


Gradual price increases supported non-life premium growth in 2011.

Figure 9 Non-life: real premium growth in 2011

Non-life insurance premium growth was strong in emerging markets.

Figure 10Non-life insurance premium growth: recovering slowly, but still below the long-term average



Catastrophelosses6 In 2011, total economic losses to society due to disasters (both insured and uninsured)

reached an estimated USD 370 billion, compared to USD 226 billion in 2010. The earthquake in Japan, the country’s worst on record in terms of magnitude, alone ac-counted for 57% of global economic losses. Altogether, insured losses from natural ca-tastrophes came to around USD 110 billion, while man-made disasters cost the sector around USD 6 billion, making 2011 the second-highest catastrophe loss year ever for the insurance industry. The gap between economic and insured losses of USD 260 bil-lion points to the still widespread lack of insurance protection worldwide.

Non-lifeprofitability7 In 2011, the profitability of the non-life insurance industry came under pressure from

both the underwriting and investment sides. In the eight leading markets, the average after-tax return on equity was around 4% in 2011, down from an already low 6% in 2010.

The average combined ratio rose to 106%, compared to 102% in 2010. The exception-ally high catastrophe losses in 2011 weighed heavily on underwriting results in Japan, Australia, and the US, while European countries generally enjoyed low catastrophe claims. Apart from this, the underlying underwriting results also continued to be under pressure, due to competitive pricing and inadequate rates in many market segments. Rates in advanced economies remained broadly flat in 2011, with signs of market hardening in some personal lines. The weak economic environment of the second half of 2011 also kept commercial insurance rates broadly stable.

The low interest rate environment prevailing in 2011 made it difficult to generate adequate returns from investment activities; total investment income as a share of net premiums earned declined one percentage point to 9%.

Aggregate of US, Canada, France, Germany, Italy, UK, Japan and Australia

–15%

–10%

–5%

0%

5%

10%

15%

20%

Capital gains/losses as a % of net premiums earned

Current investment income as a % of net premiums earned

Underwriting result as a % of net premiums earned

20122011201020092008200720062005200420032002200120001999

-15

-10

-5

0

5

10

15

20

After-tax return on equity (%)

estimates /forecasts


6 Swiss Re, sigma No 2/2012 Natural catastrophes and man-made disasters in 2011: historic losses surface from record earthquakes and floods. These figures exclude liability losses.

7 The following section describing the performance of non-life insurance is based on the aggregate of eight large insurance markets: the US, Canada, the UK, Germany France, Italy, Japan, and Australia.

2011 was an exceptionally adverse catastrophe year, with economic losses estimated at USD 370 billion.

Profitability remained low due to low interest rates and very high losses from natural catastrophes.

Competition and the weak economic environment also weighed on underwriting results.

Figure 11Underwriting results worsened further in 2011 on the back of exceptional catastrophe events


Non-lifecapitalisation Despite the severe catastrophe losses experienced in 2011, the industry maintained its

strong capital position. Solvency declined only marginally, by 3%, to 113%. That said, GAAP figures overstate current capital levels: interest rates at year-end 2011 were lower than at the end of 2010, which increased the value of insurers’ fixed-income portfolios while the value of their liabilities remained unchanged. However, as soon as interest rates rise, these temporary capital gains will disappear.8 Solvency II and rating agency model adjustments will also bring higher capital requirements in the future. Finally, the large catastrophe losses in 2011 revealed hidden risks, particularly in emerging markets, that were insured at insufficient rates. At the same time, reserve adequacy has also weakened due to continued reserve releases in 2011.

Aggregate of the US, Canada, France, Germany, Italy, UK, Japan and Australia

0

200

400

600

800

1000

1200

Shareholders’ equity, USD bn

Premiums earned, USD bn

2012201120102009200820072006200520042003200220012000199920%

40%

60%

80%

100%

120%

140%

Solvency (Capital/Premiums) right-hand scale

estimates /forecasts


Non-lifeinsuranceoutlook Premium rates that began picking up in 2011 are expected to continue to harden and

support premium growth in 2012, although the turn of the cycle is expected to be grad-ual and limited to certain markets and lines of business. In emerging markets, robust economic growth will increase demand for insurance. Assuming average losses from natural catastrophes, underwriting results should improve slightly compared to 2011, but will still remain negative. Investment yields will remain under pressure as the low interest rate environment persists. As long as interest rates stay low, the high valuation of bond portfolios will strengthen insurers’ solvency position.

8 Insurers may decide to realise some of the capital gains on investments. However, this would lower invest-ment yields in the future since the freed-up funds would have to be reinvested in today’s lower yield bonds.

Non-life capitalisation remained high despite the difficult environment.

Figure 12Non-life insurer solvency remained high in 2011

Non-life insurance underwriting results are expected to improve in 2012.


A closer look at property insurance penetration drivers

2011 was a year of extraordinarily high losses due to natural catastrophes and man-made disasters. However, only one third of the economic losses incurred by natural catastrophes and man-made disasters were covered by the insurance industry because of the large coverage gap. Property insurance penetration is the ratio of property premi-ums to GDP and is a measure of the take-up rate for property insurance in a country. There are a number of factors reviewed here that can potentially explain the differences in property insurance penetration by country.

The familiar S-curve concept provides a good starting point to analyse property premium penetration trends. The S-curve hypothesis posits that income, as measured by GDP per capita, is the main factor driving insurance market penetration. Accordingly, coun-tries are aligned on an S-shaped curve based on insurance penetration and GDP per capita. In a low-income country, penetration is low and the insurance market grows at the same pace as the general economy. Once a certain per-capita income level is reached, a country’s insurance market enters a phase of rapid growth which continues until it reaches a saturation point.9 Although the S-curve fits the data reasonably well, Figure 13 shows that large, unexplained deviations from it remain.

1.0% Property insurance penetration

IndiaChina

South Africa

Russia

Japan

Mexico

ArgentinaBrazil

Italy

Chile

GDP per capita in 1 000 USD100101

0.8%

0.6%

0.4%

0.2%

0.0%

US


Deviations from the S-curve are presumed to be due to various country-specific eco-nomic, institutional, cultural, and geographical factors. An unbalanced panel data set covering 23 countries between 1970 and 2010 was used to analyse potential explana-tory factors for these deviations.10

9 This finding was presented in Swiss Re, sigma No 5/1999 and Enz, Rudolf, “The S-curve relation between per-capita income and insurance penetration,” The Geneva Papers on Risk and Insurance, Vol. 25, No 3, July 2000.

10 Swiss Re Economic Research & Consulting’s research included data for the major advanced and emerging economies from 1970 to 2010. Data sources: the International Religious Freedom Report 2004 as pub-lished by the US State Department; the United Nations Conference on Trade and Development (UNCTAD); La Porta et al, 2001, Law and Finance; the Centre for Research on the Epidemiology of Disasters (CRED); Ox-ford Economics; and Swiss Re Economic Research & Consulting.

The S-curve hypothesis postulates an S-curve relationship between property in-surance penetration and GDP per capita.

Figure 13The S-curve estimation for property premiums in 2010



Of all the factors tested, the strongest explanatory power for the deviations from the S-curve was average foreign direct investment as a share of GDP. This variable was used as a measure of the openness of an economy and is positively correlated with property insurance penetration, suggesting that more open economies tend to have higher insurance penetration.

A strong rule of law in a country is also positively correlated with higher property insur-ance penetration. Intuitively, a sound judicial system is a logical predictor of insurance penetration because insurance is basically a promise to make a payment following the occurrence of a specified event. If this payment cannot be enforced due to weak judi-cial systems, insurance loses its value proposition entirely.

Although recent natural catastrophes have led to significant rate increases in the affect-ed markets, thereby increasing insurance market penetration temporarily, no evidence was found in this study to suggest that natural catastrophe exposure drives property insurance market penetration. As a proxy for exposure, the average share of the popula-tion affected by storms, floods, or earthquakes in a country was used and found to be statistically insignificant.11 One possible explanation for this finding is that risk aware-ness in markets exposed to natural catastrophes is often very low before a catastrophe actually occurs. However, the case of Turkey shows that large natural catastrophes can trigger regulatory changes and, in turn, increased risk awareness. Following two major earthquakes in 1999, the Turkish government made earthquake insurance coverage mandatory for residential buildings that fall within municipal boundaries. Although coverage is still relatively low, earthquake insurance penetration is expected to deepen alongside increased awareness measures.

By working to raise risk awareness at all levels of society, the insurance industry can help populations secure better insurance protection without having to first face the harsh lessons exacted by a major catastrophe.

11 This result was tested for robustness by employing other measures for natural catastrophe exposure, eg the average number of catastrophes by year in the CREDT database and various indices based on Swiss Re in-ternal exposure assessment versus flood, earthquake and storm.

More open economies tend to have higher penetration rates.

A stronger rule of law in a country correlates with higher property insurance penetration.

Natural catastrophe exposure alone cannot explain property insurance market penetration. This is perhaps because risk awareness is often low before an actual catastrophe happens.

The insurance industry must therefore try to raise risk awareness at all levels of society.


Premiums decline slightly in advanced markets

In 2011, total premiums in advanced markets decreased by 1.1% to USD 3 897 billion. Life insurance in Western Europe weighed particularly on the overall result, while the newly industrialised economies in Asia pushed premium growth upward. The advanced countries’ share of global insurance premiums remained at 85%.

Lifeinsurance In 2011, life insurance premiums dropped 2.3% to USD 2 262 billion after staging an

initial recovery in 2010 (1.7%). Life insurance in Western Europe was particularly hard hit, with premiums falling 9.8%. On the upside, the slide in the US came to a halt and premiums rose by 2.9%. As in 2010, Japan and the newly industrialised Asian life markets grew robustly, expanding by 4.4% in 2011.

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Real GDP growth 2011

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Non-life insurance Life insurance

South KoreaAustralia

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Luxembourg

Italy

Portugal


Non-lifeinsurance In 2011, non-life premiums in advanced markets increased 0.5% to USD 1 635 billion.

Growth was negative in North America (–1.1%) and weak in Western Europe (+0.7%) due to feeble economic growth and the pricing cycle, which had only just begun turn-ing in selected markets. In the newly industrialised Asian economies, rates increased after Japan’s devastating earthquake in March 2011, fuelling 5% premium growth.

Insurancedensityandpenetration In 2011, an average of USD 3 712 per capita in nominal terms was spent on insurance

in the advanced markets (versus USD 118 in emerging markets). Of this amount, USD 2 168 was spent on life insurance and USD 1 544 on non-life insurance. Since economic growth surpassed insurance market growth, overall insurance penetration shrank further to 8.6%, even lower than a decade ago. The decline in life business volume, particularly in Western Europe, in combination with soft pricing12 in the major non-life markets, were the principle factors behind the drop.

12 Despite the high insured losses incurred, the devastating natural catastrophe events of 2011 have not led to a global change in insurance market pricing.

Total premiums in advanced markets declined by 1.1% in 2011 to USD 3 897 billion.

In advanced economies, life insurance premium income decreased 2.3%.

Figure 14Life and non-life premium growth versus GDP growth in advanced economies in 2011

Non-life insurance premiums in advanced markets increased 0.5%.

Insurance density in advanced markets in-creased to USD 3 712 per capita, while penetration shrank to 8.6%.

Advanced markets: premium growth restricted by weak economic environment


0 2000 4000 6000 8000

Life premiums per capitaNon-life premiums per capita

GreeceMalta

IcelandCyprus

PortugalIsraelSpain

New ZealandItaly

South KoreaAustria

EU, 27 countriesLiechtenstein

GermanyEuroland

SingaporeTaiwan

CanadaBelgiumAverage

United StatesHong Kong

G7France

AustraliaNorway

Japan and newly industrialised Asian economiesIreland

Sweden United Kingdom

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Premiums per capita in USD

Premiums as a % of GDP

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GreeceMalta

IcelandCyprus

PortugalIsraelSpain

New ZealandItaly

South KoreaAustria

EU, 27 countriesLiechtenstein

GermanyEuroland

SingaporeTaiwan

CanadaBelgiumAverage

United StatesHong Kong

G7France

AustraliaNorway

Japan and newly industrialised Asian economiesIreland

Sweden United Kingdom

FinlandJapan

DenmarkLuxembourgNetherlandsSwitzerland


Figure 15Insurance density and penetration in advanced markets in 2011


North America: premiums recover slightly but profitability is under pressure

Lifeinsurance Life insurance premiums in North America grew 2.3% to USD 590 billion in 2011. In the

US, life premiums grew for the first time since 2007, rising 2.9% on improving economic conditions. New business premiums rebounded, led by strong demand for variable annuity products with guarantees, while individual life premiums continued growing at a modest pace. Because of attractive cash value guarantees, whole life products saw another year of robust growth. However, the sale of universal life products slowed as profitability challenges and reduced guarantees affected supply and demand. Term sales also contracted, but the decline was less severe than in 2010. Low interest rates, volatile equity markets and sluggish economic growth all weakened US life insurers’ profitability and capital growth. In turn, profitability pressures led some life insurers to restructure and reduce underperforming lines of business. Nevertheless, following the financial crisis, the de-risking of assets and liabilities has kept balance sheets generally solid. The industry as a whole is well capitalised enough to deal with the challenging external conditions.

In Canada, life premium growth was negative for the second consecutive year in 2011(–3.2%). In an attempt to adjust to the low interest rate environment, many Canadian life companies re-priced and offered lower guaranteed rates on individual annuity products. The adjustments made the products less attractive for consumers and sales declined. However, Canadian life companies remain well capitalised. Profitability in 2011 was solid compared to historical norms, even though the result was largely driven by accounting conventions with regard to fixed-income assets.

Going forward, US life premiums are expected to continue growing, albeit beneath their long-term trend path. The slow and prolonged recovery of employment and income growth are the main factors behind this subdued growth. In Canada, life premium growth in 2012 is likely to remain flat due to economic uncertainty and a lack of clear growth drivers for the Canadian economy. Profitability in both markets is expected to remain below pre-crisis levels, at least through 2013, since interest rates remain low, equity markets volatile, and sales sluggish.

Non-lifeinsurance Nominal non-life premiums in North America increased from USD 719 billion in 2010

to USD 736 billion in 2011. However, inflation eroded the gain, meaning that premiums were down by 1.1% in real terms. In Canada, premiums grew 1.7%, driven largely by personal lines, while in the US premiums declined by 1.3% in 2011. The profitability of the North American non-life insurance industry deteriorated in 2011, but the sector remains strongly capitalised. In fact, in both the US and Canada, the statutory surplus declined only 1.4%. The combined ratio of US property and casualty insurers (excluding health) rose from 101% in 2010 to 107.5% in 2011. Profitability deteriorated primarily due to high catastrophe losses, low investment returns, and insufficient reserves. Statutory ROE fell from 8% in 2010 to 4% in 2011. Despite severe catastrophe losses, Canada’s property and casualty insurers reported a combined ratio of 100% in 2011, a slight improvement over the 101% recorded in 2010. ROE remained flat at 7%.

For 2012, continued rate increases in personal lines and rate-firming in select commer-cial lines are likely to drive up premiums in North America. Large first-quarter 2012 catastrophe losses may further boost rates in the US. However, the industry’s growth outlook for 2012 will continue to be hampered by competitive market pricing and inadequate rates in some commercial lines of business. Profitability will remain under pressure due to low investment yields and decreasing reserve adequacy.

Life insurance premium income increased 2.3% in North America to USD 590 billion. In the US, premiums recovered and the industry is back on track …

… while life premiums fell 3.2% in Canada.

In 2012, life premiums are expected to grow in the US and stagnate in Canada; in both markets profitability is likely to remain low.

Non-life premiums shrank by 1.1% in real terms. Profitability deteriorated in the US, but increased in Canada. In 2012, non-life premiums in North America should grow, but profitability will remain a challenge.


Premiums in 2011 in North America World USD bn market shareLife 590 22%Non-life 736 37%

Real premium growth

■ Growth rate 2011● Annual average growth rate 2001–2010

–1.5%

–1.0%

–0.5%

0.0%0.5%

1.0%1.5%2.0%

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Life Non-life


Western Europe: life premiums decline after a short recovery, non-life stagnates

Lifeinsurance In 2011, overall life insurance premiums in Western Europe fell 9.8% (versus 1.8% in

2010) to USD 916 billion. Premium income declined virtually across the board in Western Europe. Liechtenstein and Luxembourg’s life insurance savings business was hit the hardest, with premiums falling 52% and 37%, respectively. In Germany, Italy, Portugal and France, the life industry generally weathered the crisis years well until 2011, when in-force premiums fell sharply. New life business in the Dutch market fell for the third consecutive year due to competition from bank savings products. In the UK, premiums continued to decline to 3.3%, but at a much slower pace than in previous years (2010: –9.3%). In Scandinavia, the picture was mixed. Although premium income increased 5.7% in Norway, Denmark’s life insurance market stagnated and Sweden and Finland’s premium income declined 4.9% and 8.2%, respectively. Premium income also increased 6.1% in Spain, 3.1% in Switzerland and 3.1% in Ireland.

In the near term, life insurers will continue to face significant headwinds. Interest rates are likely to remain low for a prolonged period of time, weighing on insurers’ profitability. The weak macroeconomic outlook and elevated risks in the euro zone will also nega-tively impact demand for life insurance. While the life industry’s overall exposure to troubled GIIPS sovereign debt is limited and manageable, some insurers remain more vulnerable than others. Moreover, a re-escalation of the sovereign debt crisis in Europe could result in a renewed banking crisis that could spill over to the insurance sector. Regulatory changes will also challenge European life insurers. Once introduced, Solvency II will increase the capital requirements for asset risk and long-term guarantees. Companies will need to balance their search for high investment returns against higher risk capital charges and strategically calibrate the guarantees embedded in their savings products. Insurers are likely to focus on risk protection rather than on savings products with long-term guarantees.

Non-lifeinsurance In 2011, non-life insurance premiums increased slightly in Western Europe by 0.7% to

USD 642 billion (2010: 1.1%). However, individual market development varied. The largest European markets contributed most to business growth, riding on moderate economic performance and premium rate increases, predominantly in personal lines. Non-life premiums increased 1.2% in Germany, 1.8% in France and 1.4% in the UK. Smaller markets such as Switzerland, with 1.2% growth in premiums, and Norway, with 3.4%, also added significantly to overall growth in the region. By contrast, non-life insurance in crisis-ridden countries shrank in 2011. Premium volume in Italy declined 1.8% despite significant rate increases in personal lines. Spain contracted 3.4%, reflect-ing difficult economic conditions and falling insurance rates.

In terms of profitability, underwriting results improved somewhat. The average com-bined ratio for direct business in the four largest European markets declined 1.3 per-centage points to 100.6%. Higher motor insurance prices were a key driver for this improvement in underwriting performance. However, investment results suffered due to the difficult economic climate.

For 2012, premium growth is expected to pick up somewhat despite the weak eco-nomic outlook. The recession in southern European markets is likely to persist for some time yet, so any expansion in insurance business in the region will be limited. However, in the rest of Europe, economic activity is likely to increase in the second half of 2012, paving the way for premium growth. Rate increases are likely to spread gradually from personal to commercial lines and support top-line growth in all markets. Nonetheless, profitability will remain weak as price increases will be slow to lend any substantial support to underwriting results, while investment returns will continue to suffer from low interest rates and adverse economic conditions.

In 2011, life insurance premiums in Western Europe declined by 9.8% to USD 916 billion.

In Western Europe, the confluence of a weak macro environment, low interest rates, and upcoming regulatory changes are particularly challenging.

In 2011, non-life premiums in Western Europe increased slightly overall. The largest European markets supported business growth, while crisis-ridden countries such as Italy and Spain restricted it.

Premiums in 2011 in Western Europe World USD bn market shareLife 916 35%Non-life 642 33%

Real premium growth


–14%–12%–10%

–8%–6%–4%–2%

0%2%

4%

Life Life excl. UK Non-life


Japan and the newly industrialised Asian economies: economic uncertainty lies ahead despite positive premium growth

Lifeinsurance Life insurance premiums in advanced Asian economies grew 4.4% to USD 704 billion

in 2011. Premium growth in Japan accelerated to 6.5%, versus 1.9% in 2010, under-pinned by stronger individual whole life policy sales and a recovery in the sales of annu-ity products. Operating results are expected to remain largely stable as lower benefit payments were partly offset by higher expenses. Japanese insurers kept their invest-ment portfolios conservative, reducing their exposure to equities and retaining a high share of government securities. At 2%, investment yields remained as low as in past years. In Hong Kong and Singapore, life insurance premium growth remained robust, riding on stable economic growth and rising incomes.

However, business slowed to 2% in South Korea and declined 7.9% in Taiwan as a result of falling sales in variable annuity products. Insurers in Taiwan were further belea-guered by the appreciation of the Taiwan dollar, which led to losses on overseas invest-ments that were not fully hedged. Although the regulator allowed insurers to set up a special reserve in response to absorb the losses, better risk management is needed to address the underlying issues.

Japan’s life insurance outlook remains relatively positive. Its economy is on track to recover from the earthquake and tsunami in 2011. The catastrophe raised insurance awareness and drove demand for protection-type insurance policies. However, due to the still large number of in-force policies offering high guaranteed yields, low investment yields remain a key concern. In other advanced Asian markets, Taiwan’s life insurance sector is expected to recover modestly and lower economic growth may restrict premi-um growth in South Korea. Low interest rates and tightening solvency requirements are also major hurdles for insurers.

Non-lifeinsurance In 2011, overall non-life premiums in advanced Asian markets increased 5% to

USD 208 billion. Growth was strongest in South Korea (11%) given the strong demand for long-term products.13 Singapore (7.3%) and Taiwan (4.9%) showed solid expansion as well. The devastating earthquake and ensuing tsunami in March 2011 raised risk awareness and premium rates in Japan, keeping premium growth at 2.8%.

However, Japanese insurance companies bore very high losses not only from the earth-quake and ensuing tsunami, but also from the Thai flooding, which together cancelled out the profits from higher tariffs for third party motor liability insurance. Korean insur-ers saw underwriting results worsen due to a surge in motor business claims and high losses overseas. Meanwhile, improvements in motor business lent support to profitability in Singapore, while Taiwanese insurers experienced low losses from major catastro-phes. In Hong Kong, motor premium income deteriorated but was partly compensated by reserve releases in other lines.

The near-term outlook for non-life business remains challenging amidst low interest rates and moderating economic growth in the region. However, increasing risk aware-ness is expected to bolster demand for property insurance. In Japan, demand for household and commercial earthquake insurance is expected to remain strong, and rising motor premium rates will also support premium growth. In South Korea, recent regulations imposing higher penalties for traffic violations should help keep the loss ratio low.

13 These are insurance policies under which parts of the premiums are returned to the policyholder if no claims are made after a number of years.

In 2011, life insurance premiums in advanced Asian economies grew 4.4% to USD 704 billion.

However, life premium growth slowed in South Korea and saw a sharp drop in Taiwan.

Looking ahead, slowing economic growth will weigh on life insurance premium growth in advanced Asian economies.

Non-life premiums grew 5% in 2011 in advanced Asian markets.

Non-life insurance results were poor in Japan and Korea, but were positive for Singapore, Taiwan, and Hong Kong.


Premiums in 2011 in Japan and the newly industrialised Asian economies World USD bn market shareLife 704 27%Non-life 208 11%

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Oceania: massive natural catastrophe losses in 2011, market hardening in 2012

Lifeinsurance In 2011, life insurance premiums in Oceania moderated slightly, but continued to grow

by 2.2%. Australia’s life insurance premiums increased 2.2% to USD 47 billion, supported by sales of individual lump sum risk products. However, demand for investment-linked products was affected by the volatile investment environment. Risk product sales also moderated due to weaker housing market activities following the aggressive interest rate hikes of 2010. Although individual disability product sales slowed, group disability products remained stable. Profitability deteriorated slightly alongside a steep drop in in-vestment income. In New Zealand, total life insurance premiums are estimated to have also increased 2.2%. Strong growth was reported in individual and group risk products, while sales of whole life and endowment policies remained low.

Growth of the Australian and New Zealand life insurance markets should remain stable in the near future as the economies steadily recover from the natural disasters of late 2010 and early 2011. While rising risk awareness is likely to fuel insurance demand, Australians remain heavily underinsured despite the recent strong increase in penetra-tion in the life risk insurance sector. Meanwhile, recent company mergers are expected to consolidate the Australian and New Zealand markets further.

Non-lifeinsurance Non-life insurance premium growth in Oceania is estimated to have jumped from 2.8%

in 2010 to 8.1% in 2011, underpinned by higher premium rates and rising demand for insurance coverage after a spate of natural disasters. Non-life insurance premiums grew 9% to USD 44 billion in Australia and 3.7% to USD 8.5 billion in New Zealand.14

However, the year was characterised by rising losses from catastrophic events that im-pacted the industry’s profitability. The Queensland flooding in early 2011 was Australia’s worst natural catastrophe ever in terms of insured losses, triggering claims of more than USD 2 billion. Tropical Cyclone Yasi led to a further USD 1.4 billion in insured losses, resulting in a sharp drop in underwriting results and a rise in the Australian non-life insurers’ loss ratio to 101%. Australian non-life insurers’ operating results also tumbled 35%. In New Zealand, about 80% of the USD 15 billion in economic losses sustained by the Christchurch earthquake was covered by insurance, making it the third most expensive earthquake in history for the insurance industry. Although the Christchurch earthquake was dwarfed by Japan’s earthquake and tsunami, it generated high insured losses because of New Zealand’s strong residential earthquake insurance penetration.

Looking ahead, the Australian and New Zealand non-life direct insurance markets are expected to grow solidly. The high losses incurred by direct insurers in 2011 were substantially mitigated by extensive reinsurance coverage. Rising disaster awareness, the higher expected frequency of catastrophic events, and increased risk management preparedness measures are also putting upward pressure on premium and reinsurance rates. In response to the devastating series of floods that affected Australia in early 2011, the government set up a National Disaster Insurance Review to investigate the availability and affordability of flood insurance and related matters and help encourage a higher penetration of flood and property insurance. Follow-up recommendations include the introduction of a standard definition of flooding and a Key Fact Sheet (KFS) that highlights information in insurance contracts. The provisions are meant to reduce ambiguity over the definition of flooding and help policyholders understand to what extent they are covered.

14 The growth rates between 2010 and 2011 are not directly comparable as figures from September 2010 are reported on an AASB 1023 basis, whereas prior figures are based on a prospective reporting framework. Premium incomes are deferred under AASB 1023, whereas under the previous prospective accounting re-porting framework, premium income was recognised fully upfront and was not deferred.

Life premiums grew 2.2% in both Australia and New Zealand, but profitability deteriorated slightly.

Growth of life insurance in Oceania is expected to remain stable in the near future.

In 2011, non-life insurance premiums in Oceania grew resolutely.

However, major losses from natural catastro-phes impacted the industry’s profitability. The non-life insurance market in Oceania has hardened and is expected to grow solidly. The Australian government has set up a National Disaster Insurance Review to promote flood and property insurance.

Premiums in 2011 in Oceania World USD bn market shareLife 47 1.8%Non-life 53 2.7%

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China and India put a drag on growth

In 2011, total insurance premiums in emerging markets grew only 1.3% in 2011 to USD 700 billion, largely due to the poor performance of the two biggest emerging markets − China and India. Premiums in China and India, which account for over 42% of total emerging market premium volume, declined 6.4% and 5.5%, respectively. However, in the other two BRIC countries (Brazil and Russia), growth remained solid, keeping emerging markets’ share of global premium volume stable at 15%. Together, the BRIC countries continue to dominate insurance growth in the emerging markets, accounting for about 60% of total emerging market premiums, up from 37% in 2000. While growth was strong in the Middle East, Latin America, and the rest of emerging Asia, Africa’s growth was sluggish.

Lifeinsurance Due to shrinking premium volume in China and India, life premiums in emerging markets

contracted 5.1% in 2011 to USD 365 billion. During the year, China set more stringent rules regarding bancassurance while India tightened its regulations on the distribution of unit-linked insurance products, resulting in a sharp decline in insurance premium income. Elsewhere, life business continued to benefit from rising premium income and increasing risk awareness. Premium growth remained especially robust in the Middle East at 9.4% and in Latin America at 9.5%. Overall, the emerging market share of global life premiums dropped slightly, from 14.2% in 2010 to 13.9% in 2011.

Total premiums in emerging markets grew only 1.3% in 2011 to USD 700 billion, largely due to the poor performance of China and India.

Life premiums contracted 5.1% to USD 365 billion.

Emerging markets: China and India weighed on otherwise solid growth


Non-lifeinsurance In 2011, non-life premiums continued to grow much faster in emerging markets (9.1%)

than in the advanced markets. South and East Asia saw 10% premium growth up to USD 119 billion, although it failed to match its exceptional 2010 performance of 22%. Premiums in Central and Eastern Europe recovered, increasing 6.7%, driven mainly by Russia and Poland’s strong economic performance. Meanwhile, non-life premium growth in Latin America accelerated to 11%. Non-life insurance in Africa rose 3.3%. Overall, emerging markets’ share of global non-life premiums is estimated to have risen slightly from 15.9% in 2010 to 17% in 2011.

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Insurancedensityandpenetration In 2011, an average of USD 118 per capita was spent on insurance in the emerging

markets (versus USD 3 712 in advanced markets). Of this amount, USD 62 was spent on life insurance and USD 56 on non-life insurance. After 15 years of solid economic growth and increasing insurance penetration15 in emerging markets, overall insurance penetration declined slightly for the first time to 2.7%. However, penetration surges and dips varied by country. Although penetration declined in China and India, it continued to increase in Russia and resumed its uptrend in Brazil.

15 Insurance penetration is defined as premiums as a percentage of GDP.

Non-life premiums expanded 9.1% to USD 334 billion, but growth remained below the ten-year average.

Figure 16 Life and non-life premium growth versus GDP growth in emerging markets

Insurance density in emerging markets increased to USD 118 per capita, while penetration dropped slightly for the first time in 15 years to 2.7%.


Figure 17 Emerging markets: insurance density and penetration

0 200 400 600 800 1 000 1 200 1 400 1 600

Life premiums per capita

Non-life premiums per capita

BangladeshPakistan

NigeriaEgypt

VietnamKenya

PhilippinesSri Lanka

AlgeriaGuatemala

AngolaBelarus

IndiaIndonesia

UkraineDominican Republic

KazakhstanTunisia

MoroccoPeruIran

EcuadorJordanSerbia

AverageRomania

TurkeyBulgaria

ColombiaPR China

Costa RicaSaudi Arabia

MexicoThailandJamaica

OmanLebanon

KuwaitPanama

RussiaArgentinaVenezuela

CroatiaHungary

BrazilNamibiaBahrain

MauritiusPoland

MalaysiaSlovakia

QatarChile

Trinidad and TobagoCzech Republic

MacaoSouth Africa

United Arab EmiratesSlovenia

Premiums per capita in USD

0% 2% 4% 6% 8% 10% 12% 14% 16%


BangladeshPakistan

NigeriaEgypt

VietnamKenya

PhilippinesSri Lanka

AlgeriaGuatemala

AngolaBelarus

IndiaIndonesia

UkraineDominican Republic

KazakhstanTunisia

MoroccoPeruIran

EcuadorJordanSerbia

AverageRomania

TurkeyBulgaria

ColombiaPR China

Costa RicaSaudi Arabia

MexicoThailandJamaica

OmanLebanon

KuwaitPanama

RussiaArgentinaVenezuela

CroatiaHungary

BrazilNamibiaBahrain

MauritiusPoland

MalaysiaSlovakia

QatarChile

Trinidad and TobagoCzech Republic

MacaoSouth Africa

United Arab EmiratesSlovenia

Life premiums per capitaNon-life premiums per capita Premiums as a % of GDP




South and East Asia: life premium recovery and non-life motor reforms on the way

Lifeinsurance After expanding 16% in 2010, life insurance premiums in South and East Asia shrank

in 2011 for the first time in fifteen years, by 10%. The decline resulted from a 15% con-traction in premium volume in China due to tighter regulations on the distribution of in-surance products through banks and because of new regulations governing the sales of unit-linked insurance products in India, where life insurance premiums decreased 8.5%.

However, most other South and East Asian markets enjoyed robust premium growth, fuelled by rising income levels and heightened risk awareness. Bancassurance is be-lieved to have spearheaded growth in many markets, although the use of other channels such as the internet and telemarketing was also observed. Overall profitability remained stable in most markets, but insurers are facing increasing capital constraints due to tightening solvency regulations and robust premium growth.

Life insurance premiums in South and East Asia are expected to rebound in 2012, as insurers in China and India adapt to the new regulations. Despite the deterioration in the economic outlook, most regional markets should be able to sustain trend growth now that governments are adopting monetary easing and fiscal stimulus policies to support growth. Heightened risk awareness is also likely to support life premium growth in 2012 and beyond. In China and India, regulators are looking to implement more sophisticated solvency standards in the near future. However, inflation has reached its pinnacle in most markets and interest rates are likely to decrease as monetary policies loosen. This does not bode well for insurers in the region, since investment yields will come under increasing pressure. Looking ahead, insurers will seek to improve profitability, which is likely to trigger the use of alternative channels in an attempt to reduce distribution costs.

Non-lifeinsurance In 2011, South and East Asia’s aggregate non-life premium growth remained a strong

10%, even though premium growth in China was down to 10% (2010: 28%). The slow-down in China was mainly attributable to slower growth in motor premiums as a result of the phasing out of subsidised schemes for cars, higher oil prices, and a tightening of car ownership restrictions in major cities due to congestion and pollution concerns. Meanwhile, premium growth in India was supported by rising motor premium rates across different vehicle categories. In most markets, infrastructure projects and stable economic growth have vibrantly fuelled non-life premiums. Profitability in most markets is estimated to have remained favourable, with the exception of Thailand, where under-writing losses reached USD 3.5 billion (94% incurred by foreign branches in Thailand). The extent of the loss is most apparent when viewed against the USD 70 million in profit reported in 2010. Nonetheless, in the aftermath of the flooding in Thailand, the Thai government approved a USD 1.6 billion Natural Catastrophe Insurance Fund to reinsure the more than 60 local non-life insurance companies. The fund will also provide disaster protection for households and small and medium-sized enterprises.

The outlook for the non-life insurance sector in South and East Asia remains cautiously positive. While moderate economic growth is likely in 2012, structural changes, partic-ularly in the motor market, could help support underwriting results. In Malaysia, for instance, tariffs are being increased over a four-year period to improve efficiency and pave the way for eventual market liberalisation. This will benefit insurers’ operating results from 2012 onwards. China has begun liberalising motor tariffs and has recently started allowing foreign insurers to participate in the compulsory motor third party liability market. India has taken steps to revamp its motor market, too, by abolishing the current third party motor liability pool for commercial vehicles and replacing it with a pool for declined risks. These changes are expected to positively impact insurance growth by allowing more open market participation and greater freedom in pricing.

Life insurance premiums in South and East Asia shrank for the first time since 1994, mainly because of tighter regulations in China and India.

Aside from China and India, most other South and East Asian markets saw robust life premium growth.

A rebound in life premium growth is expected in 2012, as China and India adapt to the new regulations. However, falling interest rates are expected to put pressure on profitability.

Non-life premium growth in South and East Asia was robust in 2011 and the outlook remains cautiously positive.

Premiums in 2011 in South and East Asia World USD bn market shareLife 228 8.7%Non-life 119 6.0%

Real premium growth


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Latin America and the Caribbean: premium growth is expected to slow after expanding solidly in 2011

Lifeinsurance In 2011, life insurance premiums in Latin America and the Caribbean grew a solid 9.5%

to USD 65 billion. Despite this apparent robustness, growth has fallen since 2010 (12%) and is below the average growth for the last decade (10%). The main contributors to premium growth were some of the largest regional markets. In Brazil, premiums expanded 10%, fuelled by credit life and by VGBL16, a retirement savings product with protection elements. Mexico’s life insurance market grew 7.2%, benefitting from a dynamic individual life market that more than compensated for shrinking pension-related life business. Premiums expanded strongly in Argentina (28%), as well as in Colombia (11%) and Ecuador (22%). However, premium growth slowed markedly in Chile and Peru to 2.4% and 4.3%, respectively, from double-digit growth rates in 2010. Panama was the only market where life premiums declined, by 5%, on the back of shrinking individual life premiums. Premiums had already shrunk 6% in 2010.

In 2012, life premium growth is expected to slow due to the weakening economic environment, but should remain above 5% overall. In the medium term, products aimed at saving for retirement are likely to grow rapidly and outperform protection products. Credit life is also expected to expand quickly as financial markets mature and loan volume expands across the region. Bancassurers are expected to be the main benefici-aries of growth in credit life.

Non-lifeinsurance In 2011, non-life premiums in Latin America and the Caribbean increased 11% to

USD 89 billion, doubling the 2010 growth rate and two percentage points above the long-term average. All major countries showed solid performance. Argentina, which grew 20%, and Mexico, which grew 12%, contributed significantly to the overall results. Mexico’s performance was boosted by the Pemex account renewal,17 but even after adjusting for the account, non-life premiums grew 8%. With double-digit growth rates, Chile, Colombia, Ecuador, and Panama also exceeded the regional average, although their contribution to regional growth was limited due to their smaller insurance markets. In Brazil, the biggest regional market, growth was below the regional average, but still a solid 7.1%, fuelled by marine, engineering, and oil risk business.

Non-life premium growth is expected to slow temporarily in 2012 due to the weakening

economic environment. The mid-term outlook, however, remains robust. Rising car ownership will contribute to motor insurance business, while accident and health insur-ers will benefit from the projected rise in formal employment and ensuing employer-provided covers. Commercial insurance is also expected to grow solidly as governments roll out infrastructure projects. Finally, credit and transport will benefit from increasing trade activity. As a result, insurance premiums are likely to grow faster than the under-lying economy and penetration should increase.

16 Vida Gerador de Beneficios Livre17 The multi-line, multi-year policy of the state-owned oil company Pemex was placed in June 2011.

In 2011, life insurance premiums in Latin America and the Caribbean grew 9.5% to USD 65 billion.

Life insurance premium growth is expected to slow in 2012, but should remain above 5%.

Non-life insurance in Latin American and the Caribbean grew 11% to USD 89 billion. All major countries showed solid performance.

In 2012, non-life premium growth is expected to slow temporarily before resuming its strong positive trend in the mid-term.


Premiums in 2011 in Latin America and the Caribbean World USD bn market shareLife 65 2.5%Non-life 89 4.5%

Real premium growth


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Central and Eastern Europe: Poland and Russia drive regional development

Lifeinsurance Life insurance premium growth in Central and Eastern Europe (CEE) weakened from

5.8% in 2010 to 0.1% in 2011. The regional premium volume was USD 21 billion, with growth varying widely across the region. In Poland, the largest life market, premiums shrank by 2.3% as pure savings business declined, while unit-linked business supported growth by expanding more than 20%. In Slovakia, premiums stagnated and business declined in most of the other European Union (EU) countries in the region. Notable exceptions included Lithuania, which grew 17%, and Latvia, which grew 36%. In the Czech Republic, premiums fell 1.6% due to a decline in single premium business, while regular premiums increased marginally. The weak performance of many life markets in the region reflected the gradually deteriorating economic environment in 2011 and the fact that the private sector is still highly indebted in many countries. Nevertheless, unit-linked business performed relatively well, growing in many markets or registering the least contraction, with the exception of Romania. Among the Commonwealth of Independent States (CIS), Russia and the Ukraine saw premiums soar by an estimated 42% and 34%, respectively. Growth in Russia was strong in all reported categories except annuities. Nevertheless, market penetration in the life sectors remained low in both countries.

The weak economy and the ongoing household deleveraging are likely to rein in premium volume growth in 2012 and keep it below pre-crisis levels. Unlike in many other coun-tries in the region, global insurance companies do not have a very high market share in Russia, from which several multinational companies announced their exit recently. Elsewhere – including Poland − M&A activity increased of late, with further consolida-tion a possibility as insurance companies streamline operations and concentrate their capital allocation on key markets. There are signs that Polish life insurers are shifting their attention to risk products because the predominant savings business is not profita-ble from an economic point of view and will become even less viable under Solvency II. The Polish regulator has taken steps to put an end to commission practices in bancas-surance, which is likely to reduce the sales volume generated via this channel.

Non-lifeinsurance Non-life insurance premiums grew 6.7% in the CEE to USD 72 billion in 2011 after two

years of decline. The region’s two largest markets, Russia and Poland, contributed the most, as economic growth was solid throughout the year. In Russia, growth was robust across most business lines, while in Poland the key driver was property and motor business, supported by improved pricing. Premium volume rebounded in Latvia but declined in the other Baltic States. In the rest of the EU member states in the region, the picture was mixed. In Slovakia, premiums stagnated – an improvement after two years of outright contraction − unlike in the Czech Republic, where premiums continued to decline 3.3%. Hungary and Romania saw premium volume drop sharply by more than 10%, mainly on declining motor business, while property insurance performed better. Competition remained very strong throughout the region, particularly in motor lines, thereby further softening prices. These very mixed results also reflect the differences in the strength of the economic environment. Underwriting results recovered in Poland on lower natural catastrophe losses and firmer pricing. Results improved likewise in Russia, Hungary and Romania, while worsening slightly in the Czech Republic.

Going forward, premium growth is likely to be dampened by the economic slowdown, which is expected to be sharpest in the EU member states, with the exception of Poland. Competition is unlikely to let up and pricing is set to remain soft. In Russia, buoyant commodity prices will help boost the economy, which in turn should create more demand for insurance cover. In Poland, meanwhile, the recent price increases have levelled off and premium growth rates should follow suit.

In Central and Eastern Europe, life insurance premium growth weakened in 2011 to 0.1%.Life insurance premiums increased marginally across markets − a few expanded rapidly, while the majority declined.

The outlook for life insurance in the CEE is challenging given a weak economic environment that is likely to lead to further market consolidation.

Non-life premium growth in the CEE revived in 2011 on diverging developments across the region. In the future, non-life premium growth will be dampened everywhere by the economic slowdown, with the exception of Poland.

Premiums in 2011 in the CEE region World USD bn market shareLife 21 0.8%Non-life 72 3.7%

Real premium growth


–4%

–2%

0%

2%

4%

6%

8%

10%

12%

Life Life excl. Russia Non-life


The Middle East, Central Asia, and Turkey: growth momentum continues despite spots of political turmoil18

Lifeinsurance Life premiums in the Middle East, Central Asia and Turkey are estimated to have grown

a strong 16% in 2011. Total life premium volume in the region was estimated at USD 5 billion in 2011. A full third of this came from Turkey, where life premium volume grew 15%, mainly due to strong increases in health and annuity business. In Saudi Ara-bia, premium growth was about 6%, virtually reversing the 8% decline of the prior year. The Kingdom’s insurance regulator has made its cooperative model exclusive, out-ruling the takaful models which were in predominant use among life insurers.19 In the United Arab Emirates, life premium volume expanded 13% in 2011, down from the 20% ex-pansion recorded in the prior year. Iran’s life sector continued to expand at a growth rate of more than 30% for the second straight year. The life insurance market continued to develop strongly in Kazakhstan, growing an estimated 51% in 2011, compared to a moderate 5% in Lebanon.

In the medium to long term, the life insurance market will continue to benefit from in-creasing insurance awareness. However, it remains to be seen how regulatory changes in Saudi Arabia will affect future growth. Life insurance penetration is still very low, highlighting strong future growth potential in the regional life insurance market. The Middle East, Central Asia, and Turkey are also likely to benefit from favourable demo-graphics in the form of a high proportion of people of working age and rising affluence among its population.

Non-lifeinsurance The non-life insurance sector in the Middle East, Central Asia, and Turkey is estimated

to have expanded 12% in 2011 to USD 32 billion in terms of total premiums. Growth was strong in Saudi Arabia (8.5%) and Qatar (8.9%) driven by an expansion of personal lines, increased public expenditure and investments in industrial and infrastructure projects. Growth steepened in Iran, where non-life premium volume grew 20% (2010: 12%). In nations hit by political turmoil, such as Syria, Yemen, and Bahrain, non-life growth remained subdued or declined sharply. In Turkey, non-life premiums are estimated to have soared 14% in 2011 (3.6% in 2010) on strong growth in motor, property and health insurance business. Although motor insurance including motor third party liability is the largest non-life branch in Turkey, it is among the least profitable due to fierce price competition.

Political uncertainty in the Middle East and the slowing global economy will have a

negative impact on regional economic activity, thereby affecting non-life insurance growth prospects in 2012. In the medium to long term, however, strong growth is expected in personal lines as more people join the expanding middle class, awareness and acceptance of takaful and conventional insurance products rises, and more banks begin selling insurance products. Health insurance is likely to make further inroads into the region as governments enact laws requiring compulsory health coverage (for nationals and/or expatriates). Dubai, Qatar, and Oman are thought to be the likeliest candidates in the short to medium term. Strong infrastructural development and in-creased government outlays, particularly in the oil-exporting countries, will continue to support demand for commercial property and engineering insurance. Nevertheless, competition in the regional insurance markets is likely to remain high as the influx of regional and global players continues. This competition is expected to apply pressure on rates and thereby affect the profitability of insurers in the medium term.

18 The figures in this section exclude Israel, which falls under advanced countries.19 More background on takaful and Islamic insurance can be found in the 2011sigma expertise publication,

“Islamic insurance revisited”.

Life premiums grew 16% in the Middle East, Central Asia and Turkey in 2011. Life premiums grew robustly in Turkey and the oil-exporting countries.

LIfe insurance will continue to benefit from increasing risk awareness and favourable demographics.

In 2011, non-life premiums expanded 12% in the Middle East, Central Asia and Turkey. Compulsory insurance lines, including health and increased infrastructure outlays, supported non-life insurance sector growth.

The near-term growth outlook may be clouded with uncertainty on the political front, but it remains solid in the medium to long term.


Premiums in 2011 in the Middle East, Central Asia, and Turkey: World USD bn market shareLife 5 0.2%Non-life 31 1.6%

Real premium growth


0%

2%

4%

6%

8%

10%

12%

14%16%

Life Non-life


Africa: life premiums return to growth, non-life expands

Lifeinsurance Life insurance premiums in Africa are estimated to have increased 1.3% to USD 46 bil-

lion in 2011, having declined 11% in 2010. South Africa, the region’s dominant market, accounts for around 90% of regional life premium volume. Premium income in South Africa is estimated to have been up 1.5% in 2011, against a drop of 12% in 2010. Growth was supported by an increase in recurring premiums for individual in-force policies in 2011. Retirement annuities also gained popularity and experienced a strong shift from single premium to recurring premium fund polices. Meanwhile, life insurance net flows (total premiums minus total payments) improved in 2011 after languishing for a number of years. Premiums in Egypt, which ranks a distant third by market size, shrank 10% in 2011 (2010: –0.6%). Premiums in Angola, the tenth largest market, are estimated to have grown 18% in 2011 (2010: –13.5%). Recent data is unavailable for the other countries in the region. In 2010, premium volumes expanded in the majority of African countries, but contracted between –0.6% and –12.4% in the top four markets in the region. A number of takaful companies have set up operations in Egypt as well as in other African countries, potentially broadening the appeal of life insurance among the continent’s significant Muslim population.

Life insurance in the region is set to experience growth in the medium term as the economic recovery gains momentum. In South Africa, annuity sales are expected to hold up despite the currently low interest rate environment.

Non-lifeinsurance Non-life premiums in Africa rose 3.3% in 2011, according to the limited information

available. This is similar to the data for 2010 and below the average real growth achieved in the previous five years. The total masks significant country-level differences, however. For instance, political and social unrest in some states in northern Africa adversely hit economic activity and, by extension, hurt the insurance markets. More specifically, lost output from the disruptions together with reduced foreign direct investment have led external commentators to significantly revise down their real GDP growth estimates for 2011 for the countries most affected. Consistent with the worsening economic backdrop, non-life premiums in Egypt fell 1.6% in real terms. By contrast, insurance markets in Sub-Saharan Africa remained robust. Most notably, non-life premiums in South Africa − by far the region’s largest insurance market − rose 3.4%, up slightly from 2010. Despite the economic headwinds afflicting its largest export markets in Europe, South African GDP growth held up last year, supporting the country’s insurance premium volume. In the less developed markets in Sub-Saharan Africa, little information is available for 2011, but growth has been solid in much of the region in recent years. For Angola, estimates suggest that premium growth remained strong in 2011, at 7.9%.

Barring any lasting economic impact from the political turmoil in some parts of the

region, the outlook for African insurance markets remains positive. In the near term, high commodity prices will benefit economic activity in those countries rich in natural resources, which will underpin premium growth. Looking further ahead, greater wealth and an emerging middle class should translate into rising market penetration as demand for insurance grows, although structural factors (including in the oil/energy insurance business) mean developments will likely vary widely across the continent.

Life insurance premiums in Africa increased in 2011. The South African life insurance industry was impacted by lower sales of annuities.

Life insurance in Africa is set to grow more in the medium term as the economy recovers.

According to available data, non-life premiums rose 3.3% in Africa in 2011. The worsening economic conditions and political and social unrest in some African states are hurting the non-life insurance market in Africa. Barring political turmoil, the non-life insurance outlook for Africa is positive.

Premiums in 2011 in Africa World USD bn market shareLife 46 1.8%Non-life 22 1.1%

Real premium growth


0%

1%

2%

3%

4%

5%

6%

7%

Life Non-life


Methodology and data

This sigma study is based on the direct premium volume of insurance companies, re-gardless of whether they are privately or state owned. Premiums paid to state social in-surers are not included. Life and non-life premium volume in 147 countries is examined. Detailed information on the largest 88 countries in terms of total insurance premium volume can be found in the statistical appendix.

The designation of the economies mentioned in this sigma as “advanced” or “emerging” is generally in keeping with the conventions of the International Monetary Fund (IMF). Advanced economies include the US, Canada, Western Europe (excluding Turkey), Israel, Oceania, Japan and the newly industrialised Asian economies (Hong Kong, Singapore, South Korea and Taiwan). All other countries are classified as “emerging” and generally correspond to the IMF’s “emerging and developing” economies.20

The insurance data and estimates contained in the study originate primarily from national supervisory authorities and, in some cases, from insurance associations. Macroeconomic data was sourced from the International Financial Statistics of the IMF, Oxford Economics, the Economist Intelligence Unit and the Wiener Institut für internationale Wirtschaftsvergleiche.

Figures for past years are adjusted as new information becomes available, while the sigma world insurance tables are updated and published21 by the beginning of each calendar year. Since the publication of last years’ sigma, global premium volume for 2010 has been revised by -0.2% for life insurance and by 0.01% for non-life insurance.

This report is based on information concerning the premiums written for direct business by all registered insurers. This means:

1. Direct insurance premiums, including commissions and other charges, are consid-ered prior to cession to a reinsurance company.

2. Domestic insurers – regardless of their ownership – and domestic branches of for-eign insurers are regarded as domestically domiciled business units. By contrast, business undertaken by the foreign branches of domestic insurers is not regarded as domestic business.

3. Business that has been written in the domestic market includes premiums for cover of domestic risks as well as those covering foreign risks, as long as they are written by domestic insurers (cross-border business).

Life and non-life business areas in this sigma study are categorised according to standard EU and OECD conventions: health insurance is allocated to non-life insurance, even if it is classified differently in the individual countries.

Only premium income from domestic risks is used to calculate insurance penetration and density. Cross-border business is not included. This has a significant effect in Luxembourg, Italy, and Ireland.

20 The only exceptions are the Czech Republic, Estonia, Slovenia, and Slovakia.21 The update of the tables can be found on www.swissre.com/sigma.

This sigma study is based on the direct premium volume of insurance companies in 147 countries.

Country classifications generally follow IMF conventions.

Data sources

Data revisions

Definition of premium income

Health insurance is allocated to non-life business.

Density and penetration do not include cross-border business.


Unless otherwise stated, premium growth rates indicate changes in real terms. These real growth rates are calculated using premiums in local currencies and adjusted for inflation using the consumer price index for each country. The statistical appendix also provides the nominal change in growth for each country. Regional aggregated growth rates are calculated using the previous year’s premium volumes and converted into US dollars at market exchange rates. The same procedure applies to the economic aggregates in Table X, where the previous year’s nominal GDP figures in US dollars are used as weights.

Using the average exchange rate for the financial year, premium volumes are converted into US dollars to facilitate comparisons between markets and regions.22 Where no premium data is available (indicated by “na.” for the local currency value in the tables), the premium income in US dollars is estimated assuming a constant ratio of insurance premiums to GDP. Regional growth rates are calculated using a weighted average of the real growth rates of the individual countries. The weighting is based on the relevant premiums of the previous year in USD.

The statistical appendix contains additional calculations and the macroeconomic data used for currency conversions.

The sigmaeditorial team would like to thank the supervisory authorities, associations, and companies that helped with data compilation.

22 In Egypt, India, Iran, Japan, South Korea and Malaysia, the financial year is not the same as the calendar year. Precise details about the differences in dates are given in the notes to the statistical appendix.

Growth rates in local currency are adjusted for inflation.

Figures are converted into US dollars to facilitate international comparisons.

Acknowledgements


Statistical appendix

Legend for Tables I to X 1 Excluding cross-border business 2 Excludes advanced countries in South and East Asia (Hong Kong, Singapore, South Korea and Taiwan) 3 Insurance penetration (premiums as a percentage of GDP) and density (premiums per capita) include

cross-border business 4 North America, Western Europe (excluding Turkey), Japan, Hong Kong, Singapore, South Korea, Taiwan

(counted as an emerging market in earlier editions), Oceania, Israel 5 Latin America, Central and Eastern Europe, South and East Asia, the Middle East (excluding Israel),

Central Asia, Turkey, Africa 6 34 member countries 7 The US, Canada, the UK, Germany, France, Italy, Japan 8 The US, Canada, Mexico 9 Singapore, Malaysia, Thailand, Indonesia, the Philippines and Vietnam. The four remaining member

countries – Brunei, Cambodia, Laos and Myanmar – are not included. 10 Life insurance: premiums are supplemented by estimated premiums for group pension business,

which has not been included in the statistics for some regions since 2001. Non-life insurance includes state funds.

11 Life insurance: net premiums 12 Non-life insurance: gross premiums, including reinsurance premiums 13 Financial year 1 April 2011 – 31 March 2012 14 Financial year 21 March 2011 – 20 March 2012 15 Financial year 1 July 2010 – 30 June 2011 16 Non-life insurance: financial year 1 July 2010 – 30 June 2011 17 Inflation-adjusted premium growth rates in local currency, see Tables II, IV and VI 18 Including the remaining countries

+ provisional * estimated ** estimated USD value assuming constant insurance penetration


Table I: Premium volume by region and organisation in 2011

Premium volume (in millions of USD)

Change (in %)inflation-adjusted

Share of worldmarket (in %)

2011

Premiums1

in % of GDP2011

Premiums1 percapita (in USD)

2011Total business 2011 2010 2011 2010America 1 480 164 1 403 784 1.3 0.3 32.21 6.64 1 575.4

North America 1 325 890 1 275 854 0.4 –0.4 28.85 7.94 3 814.6Latin America and Caribbean 154 275 127 930 10.1 8.1 3.36 2.76 260.6

Europe 1 650 866 1 615 190 –5.2 1.5 35.93 7.06 1 885.7Western Europe 1 557 927 1 526 867 –5.8 1.5 33.90 7.93 2 947.1Central and Eastern Europe 92 940 88 323 5.3 0.1 2.02 2.62 286.7

Asia 1 298 139 1 172 176 2.2 7.4 28.24 5.85 313.9Japan and newly industrialised Asian economies 911 520 804 341 4.6 3.7 19.84 11.30 4 297.8South and East Asia2 346 852 334 034 –4.3 17.7 7.55 3.04 96.6Middle East and Central Asia 39 767 33 800 9.4 6.5 0.87 1.48 123.6

Africa 68 080 63 072 1.8 –6.8 1.48 3.62 65.2Oceania 99 438 81 466 5.2 2.7 2.16 5.94 2 759.2World3 4 596 687 4 335 687 –0.8 2.4 100.00 6.60 661.0

Advanced markets4 3 897 175 3 690 322 –1.1 1.3 84.81 8.58 3 711.6Emerging markets5 699 512 645 364 1.3 9.9 15.22 2.73 117.8

OECD6 3 842 501 3 632 549 –0.9 1.1 83.62 8.07 2 999.5G77 2 979 638 2 839 994 –1.0 0.4 64.84 8.71 3 928.1Euroland 1 067 417 1 072 417 –7.5 3.3 23.23 7.58 2 997.4EU, 27 countries 1 498 677 1 475 886 –5.9 1.4 32.61 7.89 2 756.7NAFTA8 1 348 121 1 295 088 0.6 –0.4 29.34 7.55 2 914.6ASEAN9 67 799 57 550 7.6 8.8 1.48 3.06 122.0

Life businessAmerica 654 935 611 466 2.9 0.2 24.93 2.94 697.1

North America 589 737 557 007 2.3 –0.7 22.45 3.53 1 696.7Latin America and Caribbean 65 197 54 459 9.5 12.0 2.48 1.17 110.1

Europe 937 168 956 617 –9.6 1.9 35.68 4.06 1 083.2Western Europe 916 297 937 012 –9.8 1.8 34.88 4.74 1 759.5Central and Eastern Europe 20 871 19 605 0.1 5.8 0.79 0.59 64.4

Asia 941 958 865 753 0.5 6.9 35.85 4.26 228.5Japan and newly industrialised Asian economies 703 793 621 917 4.4 3.8 26.79 8.77 3 333.8South and East Asia2 228 060 235 246 –10.4 15.8 8.68 2.00 63.5Middle East and Central Asia 10 105 8 589 9.4 8.8 0.38 0.38 31.4

Africa 46 298 43 106 1.3 –10.9 1.76 2.46 44.3Oceania 46 810 39 435 2.2 2.6 1.78 2.80 1 298.9World3 2 627 168 2 516 377 –2.7 2.9 100.00 3.77 377.7

Advanced markets4 2 261 740 2 159 728 –2.3 1.7 86.10 5.01 2 168.1Emerging markets5 365 428 356 648 –5.1 10.9 13.90 1.42 61.5

OECD6 2 190 748 2 086 889 –2.0 1.3 83.40 4.63 1 719.6G77 1 718 182 1 641 054 –1.7 0.5 65.41 5.10 2 300.1Euroland 600 681 639 387 –12.7 5.2 22.87 4.19 1 657.1EU, 27 countries 880 706 904 942 –9.9 1.8 33.53 4.71 1 646.7NAFTA8 599 820 565 952 2.4 –0.6 22.83 3.36 1 296.8ASEAN9 41 945 35 522 8.0 9.7 1.60 2.02 80.4

Non-life businessAmerica 825 230 792 318 0.0 0.3 41.93 3.70 878.3

North America 736 152 718 847 –1.1 –0.2 37.40 4.41 2 117.9Latin America and Caribbean 89 078 73 471 10.7 5.6 4.53 1.59 150.5

Europe 713 699 658 573 1.3 0.8 36.26 3.01 802.5Western Europe 641 630 589 855 0.7 1.1 32.60 3.20 1 187.6Central and Eastern Europe 72 069 68 718 6.7 –1.4 3.66 2.03 222.3

Asia 356 180 306 423 7.0 9.0 18.08 1.59 85.4Japan and newly industrialised Asian economies 207 727 182 424 5.0 3.3 10.55 2.53 964.0South and East Asia2 118 792 98 788 10.2 22.3 6.04 1.04 33.1Middle East and Central Asia 29 662 25 211 8.9 5.8 1.51 1.10 92.2

Africa 21 782 19 965 3.3 3.4 1.11 1.16 20.9Oceania 52 628 42 031 8.1 2.8 2.67 3.15 1 460.3World3 1 969 519 1 819 310 1.9 1.9 100.00 2.83 283.2

Advanced markets4 1 635 435 1 530 594 0.5 0.7 83.09 3.57 1 543.5Emerging markets5 334 084 288 716 9.1 8.8 16.96 1.30 56.3

OECD6 1 651 753 1 545 660 0.7 0.7 83.92 3.45 1 279.9G77 1 261 456 1 198 939 –0.1 0.2 64.09 3.61 1 628.1Euroland 466 735 433 030 0.3 0.5 23.71 3.39 1 340.3EU, 27 countries 617 971 570 944 0.4 0.8 31.40 3.18 1 110.1NAFTA8 748 301 729 135 –0.9 –0.3 38.02 4.19 1 617.8ASEAN9 25 854 22 028 7.1 7.5 1.31 1.04 41.5


Table II: Total premium volume in local currency in 2011

Premium volume Change (in %) Change (in %)(in millions of local currency) nominal inflation-adjusted

Country Currency 2011 2010 2009 2011 2010 2011 2010North America United States10 USD 1 204 677 * 1 162 160 1 149 758 3.7 1.1 0.5 –0.6

Canada11 CAD 119 911 * 117 117 113 578 2.4 3.1 –0.5 1.3Total 0.4 –0.4

Latin America and Caribbean

Brazil BRL 131 127 + 113 113 97 304 15.9 16.2 8.7 10.7Mexico MXN 276 185 + 243 041 234 774 13.6 3.5 9.9 –0.6Argentina ARS 52 800 + 39 467 29 676 33.8 33.0 21.9 20.4Venezuela VEB na. 34 860 * 27 550 na. 26.5 na. –1.3Chile CLP 4 677 344 4 228 292 3 457 953 10.6 22.3 7.4 18.7Colombia COP 14 082 420 + 12 261 648 11 436 694 14.8 7.2 11.1 4.8Peru PEN 7 212 6 552 5 190 10.1 26.2 6.5 24.3Ecuador USD 1 337 1 108 943 20.7 17.5 15.5 13.5Panama PAB 1 053 919 847 14.6 8.5 8.2 4.8Uruguay UYU na. 14 580 12 693 na. 14.9 na. 7.7Trinidad and Tobago TTD na. na. na. na. na. na. na.Costa Rica CRC na. 377 750 339 680 na. 11.2 na. 5.3Dominican Republic DOP na. 24 899 23 194 na. 7.4 na. 1.0Jamaica JMD na. 52 409 48 751 na. 7.5 na. –4.5Guatemala GTQ na. 3 916 3 665 na. 6.8 na. 2.9

Total 10.1 8.1Europe United Kingdom GBP 199 326 * 194 205 199 207 2.6 –2.5 –1.8 –5.6

France EUR 196 204 * 213 602 203 581 –8.1 4.9 –10.0 3.3Germany EUR 176 125 + 177 212 172 082 –0.6 3.0 –2.8 1.8Italy EUR 115 314 131 491 121 529 –12.3 8.2 –14.7 6.6Netherlands EUR 79 693 * 77 138 74 200 3.3 4.0 0.9 2.7Spain EUR 57 463 * 55 110 59 255 4.3 –7.0 1.0 –8.6Switzerland CHF 56 446 + 55 078 53 626 2.5 2.7 2.2 2.0Ireland EUR 37 536 * 36 214 * 34 736 3.7 4.3 2.4 5.9Russia RUB 1 270 921 1 041 094 977 526 22.1 6.5 12.0 –0.6Sweden SEK 273 328 + 275 167 253 160 –0.7 8.7 –3.5 7.4Belgium EUR 29 517 * 29 806 29 100 –1.0 2.4 –4.3 0.2Denmark DKK 175 214 * 169 995 160 839 3.1 5.7 0.3 3.3Finland EUR 18 250 + 18 874 16 413 –3.3 15.0 –6.5 13.6Luxembourg EUR 16 874 * 24 439 19 993 –31.0 22.2 –33.4 18.9Austria EUR 16 560 + 16 748 16 416 –1.1 2.0 –4.3 0.2Norway NOK 126 887 119 628 113 349 6.1 5.5 4.7 3.1Poland PLN 56 632 + 53 581 50 834 5.7 5.4 2.1 2.6Portugal EUR 11 720 16 426 * 13 891 * –28.7 18.3 –31.2 16.6Turkey TRY 16 796 13 816 12 145 21.6 13.8 14.2 4.8Czech Republic CZK 155 081 + 155 996 144 171 –0.6 8.2 –2.5 6.9Greece EUR na. 5 332 5 448 na. –2.1 na. –6.5Liechtenstein CHF 4 740 9 373 8 933 –49.4 4.9 –49.5 4.2Hungary HUF 797 028 826 473 807 236 –3.6 2.4 –7.4 –2.2Ukraine UAH 24 569 * 23 082 20 442 6.4 12.9 –3.2 3.2Slovenia EUR na. 2 094 2 073 na. 1.0 na. –1.0Slovakia EUR 2 061 * 2 004 1 973 2.9 1.5 –0.1 0.8Romania RON 7 948 + 8 305 8 870 –4.3 –6.4 –10.1 –11.7Malta EUR na. 1 504 1 040 na. 44.5 na. 41.7Croatia HRK 9 144 + 9 246 9 411 –1.1 –1.8 –3.5 –2.8Cyprus EUR 839 * 815 778 2.9 4.8 –0.5 2.2Bulgaria BGN 1 591 1 623 1 662 –2.0 –2.3 –5.8 –5.2Serbia RSD 57 314 56 521 53 535 1.4 5.6 –7.8 –1.1

Total –5.2 1.5Asia Japan13 JPY 51 707 976 48 939 512 + 48 484 708 5.7 0.9 5.8 1.6

PR China CNY 1 433 925 + 1 452 797 1 113 735 –1.3 30.4 –6.4 26.2South Korea13 KRW 144 794 192 132 364 816 + 119 113 680 9.4 11.1 5.3 7.7Taiwan TWD 2 310 836 2 418 655 2 108 418 –4.5 14.7 –5.8 13.6India13 INR 3 477 143 * 3 389 778 3 046 730 2.6 11.3 –5.5 –0.7Hong Kong HKD 216 782 + 197 835 179 035 9.6 10.5 4.1 8.0Singapore SGD 24 483 + 21 859 20 794 12.0 5.1 6.4 2.2Thailand THB 464 572 + 421 041 368 574 10.3 14.2 6.3 10.6Malaysia13 MYR 43 581 * 39 654 35 778 9.9 10.8 6.5 8.6Indonesia IDR 123 857 264 * 105 234 696 + 86 243 632 17.7 22.0 11.7 16.1Israel ILS 44 556 41 186 39 607 8.2 4.0 4.6 1.3Iran14 IRR 87 321 000 * 59 161 988 46 438 224 47.6 27.4 20.6 13.3United Arab Emirates12 AED 24 390 * 21 924 + 20 039 11.2 9.4 10.3 8.5Saudi Arabia SAR 18 642 * 16 387 14 610 13.8 12.2 8.3 6.5Philippines PHP 124 801 * 106 412 87 929 17.3 21.0 12.3 16.6Vietnam VND 37 983 620 + 30 843 700 25 493 240 23.1 21.0 3.8 11.1Pakistan PKR na. 100 158 85 531 na. 17.1 na. 2.8Lebanon LBP 1 841 404 1 680 125 1 553 630 9.6 8.1 4.3 4.0Kazakhstan KZT 175 529 139 964 113 290 25.4 23.5 15.7 15.4Bangladesh BDT na. na. na. na. na. na. na.Qatar QAR 3 499 * 3 195 * 3 090 + 9.5 3.4 7.5 6.0Kuwait KWD na. 206 * 172 na. 20.0 na. 15.3Oman OMR na. 266 * 238 na. 11.7 na. 8.3Sri Lanka LKR na. 68 493 57 252 na. 19.6 na. 12.9Jordan JOD 442 * 409 365 8.1 11.9 3.5 6.6Bahrain BHD na. 210 201 na. 4.9 na. 2.9Macao MOP 4 352 + 3 775 + 3 263 15.3 15.7 9.0 12.5

Total 2.1 7.4Africa South Africa11 ZAR 380 233 * 355 341 377 660 7.0 –5.9 1.9 –9.8

Morocco MAD na. 21 873 20 982 na. 4.2 na. 3.2Egypt15 EGP 9 956 9 482 8 630 5.0 9.9 –5.4 –1.7Nigeria NGN na. 201 459 190 310 na. 5.9 na. –6.9Algeria DZD na. 81 314 77 339 na. 5.1 na. 1.2Kenya KES na. 79 069 64 472 na. 22.6 na. 18.0Angola KZR 93 500 * 76 054 55 081 22.9 38.1 8.3 20.6Namibia NAD na. 6 491 6 186 na. 4.9 na. 0.4Tunisia TND na. 1 109 1 017 na. 9.1 na. 4.5Mauritius MUR na. na. 14 745 na. na. na. na.

Total 1.8 –6.8Oceania Australia16 AUD 86 379 79 244 75 057 9.0 5.6 5.4 2.7

New Zealand16 NZD 12 703 11 768 + 11 150 7.9 5.5 3.5 3.2

Total 5.2 2.7World –0.8 2.4


Table III: Total premium volume in USD in 2011

Premium volume Change (in %) 2011 Share of world(in millions of USD) nominal inflation- market

Ranking Country 2011 2010 (in USD) adjusted17 2011 (in %)North America 1 United States10 1 204 677 * 1 162 160 3.66 0.50 26.22

9 Canada11 121 213 * 113 694 6.61 –0.49 2.64Total 1 325 890 1 275 854 3.92 0.41 28.85

Latin America and Caribean

14 Brazil 78 287 + 64 264 21.82 8.71 1.7028 Mexico 22 231 + 19 234 15.58 9.92 0.4835 Argentina 12 846 + 10 129 26.82 21.87 0.2837 Venezuela 10 803 ** 8 179 * 32.08 na. 0.2440 Chile 9 669 8 287 16.67 7.40 0.2142 Colombia 7 624 + 6 458 18.06 11.07 0.1754 Peru 2 613 2 319 12.67 6.49 0.0662 Ecuador 1 337 1 108 20.68 15.48 0.0368 Panama 1 053 919 14.57 8.21 0.0274 Uruguay 867 727 19.23 na. 0.0275 Trinidad and Tobago 838 ** 769 ** 8.92 na. 0.0276 Costa Rica 815 ** 718 13.43 na. 0.0281 Dominican Republic 740 ** 675 9.58 na. 0.0283 Jamaica 676 ** 601 12.50 na. 0.0187 Guatemala 555 ** 486 14.27 na. 0.01

Other countries 3 321 3 057 0.07Total 154 275 127 930 20.59 10.13 3.36

Europe 3 United Kingdom 319 553 * 300 242 6.43 –1.77 6.954 France 273 112 * 283 221 –3.57 –10.05 5.945 Germany 245 162 + 234 970 4.34 –2.84 5.347 Italy 160 514 174 347 –7.93 –14.68 3.49

10 Netherlands 110 931 * 102 280 8.46 0.95 2.4112 Spain 79 987 * 73 072 9.46 1.04 1.7416 Switzerland 63 576 + 52 827 20.35 2.25 1.3818 Ireland 52 250 * 48 017 * 8.82 2.44 1.1419 Russia 43 257 41 644 3.87 12.00 0.9420 Sweden 42 111 + 38 218 10.19 –3.52 0.9221 Belgium 41 087 * 39 520 3.96 –4.35 0.8922 Denmark 32 691 * 30 226 8.15 0.31 0.7124 Finland 25 404 + 25 025 1.51 –6.51 0.5525 Luxembourg 23 489 * 32 401 –27.51 –33.35 0.5126 Austria 23 051 + 22 207 3.80 –4.25 0.5027 Norway 22 638 19 780 14.45 4.72 0.4930 Poland 19 107 + 17 759 7.59 2.12 0.4231 Portugal 16 313 ** 21 780 * –25.10 –31.17 0.3638 Turkey 10 051 9 220 9.01 14.18 0.2241 Czech Republic 8 764 + 8 168 7.29 –2.54 0.1943 Greece 6 879 ** 7 070 –2.71 na. 0.1546 Liechtenstein 5 339 8 990 –40.61 –49.55 0.1248 Hungary 3 964 3 975 –0.25 –7.45 0.0949 Ukraine 3 084 * 2 909 6.02 –3.23 0.0750 Slovenia 3 008 ** 2 777 8.32 na. 0.0752 Slovakia 2 869 * 2 657 7.98 –0.14 0.0655 Romania 2 607 + 2 613 –0.24 –10.14 0.0656 Malta 2 194 ** 1 994 10.02 na. 0.0559 Croatia 1 711 + 1 682 1.75 –3.51 0.0466 Cyprus 1 167 * 1 080 8.05 –0.55 0.0367 Bulgaria 1 131 1 099 2.90 –5.80 0.0279 Serbia 781 727 7.46 –7.82 0.02

Other countries 3 085 2 693 0.07Total 1 650 866 1 615 190 2.21 –5.15 35.93

Asia 2 Japan13 655 408 ** 571 359 + 14.71 5.76 14.266 PR China 221 858 + 214 626 3.37 –6.37 4.838 South Korea13 130 383 ** 115 061 + 13.32 5.34 2.84

13 Taiwan 78 416 76 425 2.61 –5.80 1.7115 India13 72 628 * 74 379 –2.35 –5.46 1.5823 Hong Kong 27 850 + 25 464 9.37 4.08 0.6129 Singapore 19 463 + 16 032 21.40 6.42 0.4232 Thailand 15 246 + 13 283 14.78 6.29 0.3333 Malaysia13 14 272 * 12 637 12.94 6.54 0.3134 Indonesia 14 092 * 11 583 + 21.65 11.71 0.3136 Israel 12 452 11 015 13.05 4.58 0.2744 Iran14 8 268 * 5 770 43.30 20.61 0.1845 United Arab Emirates12 6 641 * 5 970 + 11.25 10.26 0.1447 Saudi Arabia 4 971 * 4 370 13.76 8.34 0.1151 Philippines 2 881 * 2 359 22.16 12.32 0.0657 Vietnam 1 845 + 1 657 11.35 3.80 0.0461 Pakistan 1 376 ** 1 176 17.04 na. 0.0363 Lebanon 1 221 1 115 9.60 4.28 0.0365 Kazakhstan 1 197 950 26.04 15.73 0.0369 Bangladesh 1 044 ** 939 ** 11.18 na. 0.0273 Qatar 961 * 878 * 9.51 7.47 0.0278 Kuwait 812 ** 718 * 13.11 na. 0.0280 Oman 766 ** 691 * 10.90 na. 0.0282 Sri Lanka 701 ** 606 15.66 na. 0.0284 Jordan 622 * 576 8.05 3.50 0.0186 Bahrain 579 ** 560 3.45 na. 0.0188 Macao 544 + 472 + 15.31 9.01 0.01

Other countries 1 640 1 508 0.04Total 1 298 139 1 172 176 10.75 2.17 28.24

Africa 17 South Africa11 52 376 * 48 575 7.83 1.91 1.1453 Morocco 2 859 ** 2 599 10.03 na. 0.0658 Egypt15 1 714 1 720 –0.37 –5.44 0.0460 Nigeria 1 557 ** 1 340 16.13 na. 0.0364 Algeria 1 201 ** 1 093 9.88 na. 0.0370 Kenya 1 036 ** 998 3.78 na. 0.0271 Angola 1 000 * 828 20.84 8.32 0.0272 Namibia 971 ** 887 9.47 na. 0.0277 Tunisia 812 ** 775 4.81 na. 0.0285 Mauritius 614 ** 508 ** 20.79 na. 0.01

Other countries 3 941 3 749 0.09Total 68 080 63 072 7.94 1.77 1.48

Oceania 11 Australia16 89 086 ** 72 728 22.49 5.43 1.9439 New Zealand16 10 051 ** 8 482 + 18.50 3.50 0.22

Other countries 302 256 0.01Total 99 438 81 466 22.06 5.23 2.16

World 4 595 123 4 335 687 5.98 –0.81 100.00


Table IV: Life insurance premium volume in local currency in 2011

Premium volume Change (in %) Change (in %)(in millions of local currency) nominal inflation–adjusted

Country Currency 2011 2010 2009 2011 2010 2011 2010North America United States10 USD 537 570 + 506 709 501 675 6.1 1.0 2.9 –0.6

Canada11 CAD 51 607 * 51 812 51 545 –0.4 0.5 –3.2 –1.2Total 2.3 –0.7


Brazil BRL 68 751 + 58 518 49 465 17.5 18.3 10.2 12.6Mexico MXN 125 260 + 113 033 103 896 10.8 8.8 7.2 4.5Chile CLP 2 698 188 2 558 734 2 051 997 5.5 24.7 2.4 21.0Argentina ARS 10 670 + 7 595 5 289 40.5 43.6 28.0 30.0Colombia COP 4 214 159 + 3 674 255 3 617 176 14.7 1.6 10.9 –0.7Peru PEN 3 407 3 159 2 054 7.8 53.8 4.3 51.5Venezuela VEF na. 1 396 * 1 103 na. 26.5 na. –1.3Trinidad and Tobago TTD na. na. na. na. na. na. na.Panama PAB 234 233 239 0.6 –2.7 –5.0 –6.0Ecuador USD 231 181 157 27.5 15.6 22.0 11.6Jamaica JMD na. 17 557 16 538 na. 6.2 na. –5.7Uruguay UYU na. 3 472 2 719 na. 27.7 na. 19.7Guatemala GTQ na. 763 687 na. 11.1 na. 6.9Dominican Republic DOP na. 3 535 3 560 na. –0.7 na. –6.6Costa Rica CRC na. 33 235 31 207 na. 6.5 na. 0.8

Total 9.5 12.0Europe United Kingdom GBP 131 032 * 129 735 138 468 1.0 –6.3 –3.3 –9.3

France EUR 125 543 + 145 659 139 175 –13.8 4.7 –15.6 3.1Germany EUR 81 804 + 86 104 80 366 –5.0 7.1 –7.1 5.9Italy EUR 75 496 92 058 82 730 –18.0 11.3 –20.2 9.6Ireland EUR 30 919 * 29 636 * 28 230 4.3 5.0 3.1 6.7Spain EUR 28 202 * 25 768 28 119 9.4 –8.4 6.1 –10.0Switzerland CHF 31 148 + 30 129 29 420 3.4 2.4 3.1 1.7Sweden SEK 207 450 211 761 193 360 –2.0 9.5 –4.9 8.3Netherlands EUR 22 421 * 21 534 21 514 4.1 0.1 1.7 –1.2Belgium EUR 18 640 * 19 276 18 905 –3.3 2.0 –6.6 –0.2Denmark DKK 115 141 * 111 247 103 278 3.5 7.7 0.7 5.3Finland EUR 14 660 15 440 13 068 –5.0 18.1 –8.2 16.7Luxembourg EUR 14 623 * 22 244 17 905 –34.3 24.2 –36.5 20.9Norway NOK 72 142 67 352 62 779 7.1 7.3 5.7 4.8Portugal EUR 7 568 12 217 * 10 023* –38.1 21.9 –40.2 20.2Austria EUR 7 005 + 7 552 7 416 –7.2 1.8 –10.2 0.0Poland PLN 27 378 + 27 082 25 875 1.1 4.7 –2.3 1.9Liechtenstein CHF 4 300 8 859 8 450 –51.5 4.8 –51.6 4.1Czech Republic CZK 72 011 + 71 765 60 209 0.3 19.2 –1.6 17.8Greece EUR na. 2 272 2 444 na. –7.1 na. –11.2Hungary HUF 440 794 444 194 410 603 –0.8 8.2 –4.8 3.3Turkey TRY 2 638 2 149 1 776 22.8 21.0 15.3 11.4Slovakia EUR 976 * 952 907 2.6 5.0 –0.4 4.2Russia RUB 34 826 22 534 15 713 54.6 43.4 41.8 33.9Slovenia EUR na. 656 630 na. 4.1 na. 2.0Malta EUR na. 478 324 na. 47.4 na. 44.4Romania RON 1 688 + 1 627 1 598 3.8 1.8 –2.5 –4.0Cyprus EUR 390 * 375 353 4.0 6.2 0.5 3.6Croatia HRK 2 431 + 2 458 2 489 –1.1 –1.2 –3.5 –2.3Ukraine UAH 1 339 * 907 827 47.7 9.6 34.3 0.2Bulgaria BGN 230 223 200 2.9 11.7 –1.1 8.5Serbia RSD 9 230 8 646 7 314 6.8 18.2 –2.9 10.7

Total –9.6 1.9Asia Japan13 JPY 41 393 288 38 896 832 + 38 398 848 6.4 1.3 6.5 1.9

PR China CNY 869 559 + 967 951 745 744 –10.2 29.8 –14.8 25.6South Korea13 KRW 87 910 136 83 007 440 76 956 792 5.9 7.9 2.0 4.6Taiwan TWD 1 889 930 2 022 912 1 730 110 –6.6 16.9 –7.9 15.8India13 INR 2 893 702 * 2 916 050 2 654 473 –0.8 9.9 –8.5 –1.9Hong Kong HKD 191 148 + 173 906 156 081 9.9 11.4 4.4 8.9Singapore SGD 14 183 + 12 740 12 013 11.3 6.1 5.8 3.1Indonesia IDR 82 945 280 * 70 354 928 + 57 291 952 17.9 22.8 11.9 16.8Malaysia13 MYR 28 419 * 25 739 23 193 10.4 11.0 7.0 8.7Thailand THB 280 895 + 253 509 219 816 10.8 15.3 6.7 11.7Israel ILS 23 909 21 656 19 785 10.4 9.5 6.7 6.6Philippines PHP 81 863 * 67 400 54 548 21.5 23.6 16.3 19.0United Arab Emirates12 AED 4 502 * 3 954 + 3 273 13.9 20.8 12.9 19.8Vietnam VND 16 839 344 + 13 791 860 11 849 280 22.1 16.4 2.9 6.9Bangladesh BDT na. na. na. na. na. na. na.Pakistan PKR na. 52 429 41 943 na. 25.0 na. 9.8Iran14 IRR 7 530 000 4 686 676 3 206 245 60.7 46.2 31.3 30.1Macao MOP 3 137 + 2 688 + 2 332 16.7 15.3 10.4 12.1Lebanon LBP 517 342 468 649 468 230 10.4 0.1 5.0 –3.7Sri Lanka LKR na. 31 151 23 767 na. 31.1 na. 23.7Saudi Arabia SAR 1 083 * 972 1 003 11.4 –3.1 6.1 –8.0Kazakhstan KZT 30 479 18 646 9 333 63.5 99.8 50.8 86.5Kuwait KWD na. 43 * 37 na. 14.9 na. 10.5Oman OMR na. 50 * 40 na. 22.8 na. 19.0Bahrain BHD na. 51 57 na. –10.4 na. –12.1Jordan JOD 40 * 38 35 5.5 9.1 1.0 3.9Qatar QAR 195 + 217 + 211+ –9.9 2.6 –11.6 5.1

Total 0.4 6.9Africa South Africa11 ZAR 301 522 * 282 862 309 560 6.6 –8.6 1.5 –12.4

Morocco MAD na. 6 659 6 719 na. –0.9 na. –1.9Egypt15 EGP 4 301 4 308 3 880 –0.2 11.0 –10.1 –0.6Namibia NAD na. 4 462 4 430 na. 0.7 na. –3.6Nigeria NGN na. 52 242 36 833 na. 41.8 na. 24.7Mauritius MUR na. na. 9 510 na. na. na. na.Kenya KES na. 26 712 21 363 na. 25.0 na. 20.3Tunisia TND na. 162 135 na. 20.3 na. 15.2Algeria DZD na. 6 941 5 789 na. 19.9 na. 15.4Angola AOA 4 675 * 3 491 3 525 33.9 –1.0 18.0 –13.5

Total 1.3 –10.9Oceania Australia16 AUD 43 814 41 457 39 292 5.7 5.5 2.2 2.6

New Zealand16 NZD 1 957 1 835 + 1 725 6.6 6.3 2.2 4.0

Total 2.2 2.6World –2.7 2.9


Table V: Life premium volume in USD in 2011

Premium volume Change (in %) 2011 Share of total Share of world(in millions of USD) nominal inflation- business market

Ranking Country 2011 2010 (in USD) adjusted17 2011 (in %) 2011 (in %)North America 1 United States10 537 570 + 506 709 6.1 2.9 44.6 20.46

11 Canada11 52 167 * 50 298 3.7 –3.2 43.0 1.99Total 589 737 557 007 5.9 2.3 44.5 22.45


15 Brazil 41 046 + 33 246 23.5 10.2 52.4 1.5628 Mexico 10 083 + 8 945 12.7 7.2 45.4 0.3835 Chile 5 578 5 015 11.2 2.4 57.7 0.2139 Argentina 2 596 + 1 949 33.2 28.0 20.2 0.1040 Colombia 2 282 + 1 935 17.9 10.9 29.9 0.0946 Peru 1 234 1 118 10.4 4.3 47.2 0.0561 Venezuela 433 ** 328 * 32.1 na. 4.0 0.0269 Trinidad and Tobago 247 ** 227 ** 8.9 na. 29.5 0.0170 Panama 234 233 0.6 –5.0 22.2 0.0171 Ecuador 231 181 27.5 22.0 17.3 0.0172 Jamaica 227 ** 201 12.5 na. 33.5 0.0174 Uruguay 206 173 19.2 na. 23.8 0.0182 Guatemala 108 ** 95 14.3 na. 19.5 0.0083 Dominican Republic 105 ** 96 9.6 na. 14.2 0.0085 Costa Rica 72 ** 63 13.4 na. 8.8 0.00

Other countries 516 653 15.5 0.02Total 65 197 54 459 19.7 9.5 42.3 2.48

Europe 3 United Kingdom 210 067 * 200 571 4.7 –3.3 65.7 8.004 France 174 753 + 193 133 –9.5 –15.6 64.0 6.656 Germany 113 869 + 114 168 –0.3 –7.1 46.4 4.337 Italy 105 089 122 063 –13.9 –20.2 65.5 4.00

13 Ireland 43 038 * 39 296 * 9.5 3.1 82.4 1.6416 Spain 39 257 * 34 166 14.9 6.1 49.1 1.4917 Switzerland 35 083 + 28 898 21.4 3.1 55.2 1.3418 Sweden 31 961 29 411 8.7 –4.9 75.9 1.2219 Netherlands 31 210 * 28 553 9.3 1.7 28.1 1.1920 Belgium 25 947 * 25 559 1.5 –6.6 63.2 0.9922 Denmark 21 482 * 19 781 8.6 0.7 65.7 0.8223 Finland 20 406 20 472 –0.3 –8.2 80.3 0.7824 Luxembourg 20 355 * 29 491 –31.0 –36.5 86.7 0.7725 Norway 12 871 11 137 15.6 5.7 56.9 0.4927 Portugal 10 534 ** 16 199 * –35.0 –40.2 64.6 0.4029 Austria 9 751 + 10 013 –2.6 –10.2 42.3 0.3732 Poland 9 237 + 8 976 2.9 –2.3 48.3 0.3536 Liechtenstein 4 843 8 497 –43.0 –51.6 90.7 0.1837 Czech Republic 4 069 + 3 758 8.3 –1.6 46.4 0.1538 Greece 2 931 ** 3 012 –2.7 na. 42.6 0.1141 Hungary 2 193 2 136 2.6 –4.8 55.3 0.0843 Turkey 1 579 1 434 10.1 15.3 15.7 0.0645 Slovakia 1 359 * 1 262 7.7 –0.4 47.4 0.0548 Russia 1 185 901 31.5 41.8 2.7 0.0549 Slovenia 942 ** 870 8.3 na. 31.3 0.0455 Malta 697 ** 633 10.0 na. 31.8 0.0357 Romania 554 + 512 8.2 –2.5 21.2 0.0258 Cyprus 543 * 497 9.2 0.5 46.5 0.0260 Croatia 455 + 447 1.8 –3.5 26.6 0.0276 Ukraine 168 * 114 47.1 34.3 5.4 0.0177 Bulgaria 163 151 8.0 –1.1 14.4 0.0180 Serbia 126 111 13.1 –2.9 16.1 0.00

Other countries 451 394 14.6 0.02Total 937 168 956 617 –2.0 –9.6 56.8 35.68

Asia 2 Japan13 524 668 ** 454 113 + 15.5 6.5 80.1 19.975 PR China 134 539 + 142 999 –5.9 –14.8 60.6 5.128 South Korea13 79 161 ** 72 156 9.7 2.0 60.7 3.019 Taiwan 64 133 63 920 0.3 –7.9 81.8 2.44

10 India13 60 442 * 63 984 –5.5 –8.5 83.2 2.3021 Hong Kong 24 556 + 22 384 9.7 4.4 88.2 0.9326 Singapore 11 275 + 9 343 20.7 5.8 57.9 0.4330 Indonesia 9 437 * 7 744 + 21.9 11.9 67.0 0.3631 Malaysia13 9 307 * 8 202 13.5 7.0 65.2 0.3533 Thailand 9 218 + 7 998 15.3 6.7 60.5 0.3534 Israel 6 682 5 792 15.4 6.7 53.7 0.2542 Philippines 1 890 * 1 494 26.5 16.3 65.6 0.0747 United Arab Emirates12 1 226 * 1 077 + 13.9 12.9 18.5 0.0551 Vietnam 818 + 741 10.4 2.9 44.3 0.0352 Bangladesh 789 ** 710 ** 11.2 na. 75.6 0.0354 Pakistan 739 ** 615 20.2 na. 53.7 0.0359 Iran14 713 457 56.0 31.3 8.6 0.0364 Macao 392 + 336 + 16.7 10.4 72.1 0.0166 Lebanon 343 311 10.4 5.0 28.1 0.0167 Sri Lanka 319 ** 276 15.7 na. 45.5 0.0168 Saudi Arabia 289 * 259 11.4 6.1 5.8 0.0173 Kazakhstan 208 127 64.3 50.8 17.4 0.0175 Kuwait 185 ** 149 * 24.3 na. 22.8 0.0178 Oman 150 ** 129 * 16.0 na. 19.5 0.0179 Bahrain 148 ** 137 8.3 na. 25.6 0.0186 Jordan 56 * 54 5.5 1.0 9.1 0.0087 Qatar 54 + 60 + –9.9 –11.6 5.6 0.00


Africa 14 South Africa11 41 534 * 38 667 7.4 1.5 79.3 1.5850 Morocco 871 ** 791 10.0 na. 30.4 0.0353 Egypt15 740 782 –5.3 –10.1 43.2 0.0356 Namibia 667 ** 609 9.5 na. 68.7 0.0362 Nigeria 404 ** 348 16.1 na. 25.9 0.0263 Mauritius 396 ** 328 ** 20.8 na. 64.5 0.0265 Kenya 350 ** 337 3.8 na. 33.8 0.0181 Tunisia 119 ** 113 4.8 na. 14.6 0.0084 Algeria 103 ** 93 9.9 na. 8.5 0.0088 Angola 50 * 38 31.6 18.0 5.0 0.00

Other countries 1 065 1 000 27.0 0.04Total 46 298 43 106 7.4 1.3 68.0 1.76

Oceania 12 Australia16 45 187 ** 38 048 18.8 2.2 50.7 1.7244 New Zealand16 1 548 ** 1 323 + 17.1 2.2 15.4 0.06


World 2 626 944 2 516 377 4.4 –2.7 57.2 100.00


Table VI: Non-life insurance premium volume in local currency in 2011

Premium volume Change (in %) Change (in %)(in millions of local currency) nominal inflation–adjusted

Country Currency 2011 2010 2009 2011 2010 2011 2010North America United States10 USD 667 107 * 655 450 648 083 1.8 1.1 –1.3 –0.5

Canada11 CAD 68 304 * 65 305 62 033 4.6 5.3 1.7 3.4Total –1.1 –0.2


Brazil BRL 62 377 + 54 595 47 839 14.3 14.1 7.1 8.6Mexico MXN 150 925 + 130 008 130 878 16.1 –0.7 12.3 –4.6Venezuela VEF na. 33 464 * 26 447 na. 26.5 na. –1.3Argentina ARS 42 130 + 31 871 24 387 32.2 30.7 20.4 18.3Colombia COP 9 868 262 + 8 587 393 7 819 518 14.9 9.8 11.1 7.4Chile CLP 1 979 156 1 669 558 1 405 956 18.5 18.7 15.1 15.2Peru PEN 3 805 3 393 3 137 12.2 8.2 8.5 6.5Ecuador USD 1 105 926 786 19.4 17.9 14.2 13.8Panama PAB 819 686 608 19.3 12.9 12.7 9.0Costa Rica CRC na. 344 515 308 473 na. 11.7 na. 5.7Uruguay UYU na. 11 108 9 975 na. 11.4 na. 4.4Dominican Republic DOP na. 21 364 19 633 na. 8.8 na. 2.3Trinidad and Tobago TTD na. na. na. na. na. na. na.Jamaica JMD na. 34 852 32 214 na. 8.2 na. –3.9Guatemala GTQ na. 3 153 2 978 na. 5.9 na. 1.9

Total 10.7 5.6Europe Germany EUR 94 321 91 108 91 716 3.5 –0.7 1.2 –1.8

United Kingdom GBP 68 294 * 64 470 60 739 5.9 6.1 1.4 2.8France EUR 70 661 * 67 944 64 406 4.0 5.5 1.8 3.9Netherlands EUR 57 272 * 55 604 52 686 3.0 5.5 0.6 4.2Italy EUR 39 818 39 432 38 800 1.0 1.6 –1.8 0.1Russia RUB 1 236 095 1 018 560 961 812 21.4 5.9 11.3 –1.1Spain EUR 29 261 * 29 342 31 136 –0.3 –5.8 –3.4 –7.4Switzerland CHF 25 298 + 24 949 24 206 1.4 3.1 1.2 2.4Belgium EUR 10 877 * 10 529 10 195 3.3 3.3 –0.2 1.1Austria EUR 9 555 + 9 196 9 000 3.9 2.2 0.6 0.4Denmark DKK 60 073 58 748 57 561 2.3 2.1 –0.5 –0.2Sweden SEK 65 879 + 63 406 59 800 3.9 6.0 0.9 4.8Poland PLN 29 255 + 26 498 24 959 10.4 6.2 6.7 3.4Norway NOK 54 745 52 275 50 570 4.7 3.4 3.4 1.0Ireland EUR 6 617 * 6 577 * 6 506 0.6 1.1 –0.6 2.7Turkey TRY 14 158 11 667 10 369 21.4 12.5 14.0 3.6Portugal EUR 4 152 4 209 + 3 868 * –1.3 8.8 –4.8 7.3Finland EUR 3 590 + 3 434 3 344 4.5 2.7 1.1 1.4Czech Republic CZK 83 070 84 231 83 962 –1.4 0.3 –3.3 –0.9Greece EUR na. 3 060 3 004 na. 1.9 na. –2.7Luxembourg EUR 2 251 + 2 195 2 088 2.6 5.1 –1.0 2.3Ukraine UAH 23 230 * 22 175 19 615 4.8 13.1 –4.8 3.3Slovenia EUR na. 1 438 1 443 na. –0.3 na. –2.4Romania RON 6 260 + 6 679 7 272 –6.3 –8.2 –12.0 –13.4Hungary HUF 356 234 382 279 396 632 –6.8 –3.6 –10.6 –7.9Slovakia EUR 1 084 * 1 052 1 067 3.1 –1.4 0.1 –2.1Malta EUR na. 1 026 716 na. 43.3 na. 40.4Croatia HRK 6 713 + 6 788 6 923 –1.1 –1.9 –3.5 –3.0Bulgaria BGN 1 361 1 400 1 463 –2.8 –4.3 –6.5 –7.1Serbia RSD 48 084 47 875 46 221 0.4 3.6 –8.7 –3.0Cyprus EUR 448 * 440 424 2.0 3.6 –1.4 1.0Liechtenstein CHF 440 514 483 –14.4 6.4 –14.6 5.7

Total 1.3 0.8Asia Japan13 JPY 10 314 686 10 042 679 + 10 085 860 2.7 –0.4 2.8 0.2

PR China CNY 564 366 + 484 846 367 991 16.4 31.8 10.4 27.5South Korea13 KRW 56 884 052 49 357 380 + 42 156 888 15.2 17.1 11.0 13.5Taiwan TWD 420 906 395 742 378 308 6.4 4.6 4.9 3.6India13 INR 583 442 473 728 392 257 23.2 20.8 13.5 7.8Singapore SGD 10 300 + 9 120 8 781 12.9 3.9 7.3 1.0Iran14 IRR 79 791 000 * 54 475 312 43 231 980 46.5 26.0 19.7 12.1Thailand THB 183 678 + 167 533 148 757 9.6 12.6 5.6 9.1Israel ILS 20 647 19 529 19 821 5.7 –1.5 2.2 –4.1United Arab Emirates12 AED 19 888 * 17 970 + 16 766 10.7 7.2 9.7 6.2Malaysia13 MYR 15 162 * 13 915 12 585 9.0 10.6 5.6 8.3Saudi Arabia SAR 17 559 * 15 415 13 607 13.9 13.3 8.5 7.5Indonesia IDR 40 911 980 * 34 879 768 + 28 951 680 17.3 20.5 11.3 14.6Hong Kong HKD 25 634 + 23 929 22 954 7.1 4.2 1.8 1.9Vietnam VND 21 144 276 + 17 051 840 13 643 960 24.0 25.0 4.5 14.8Philippines PHP 42 938 * 39 012 33 381 10.1 16.9 5.4 12.6Kazakhstan KZT 145 050 121 318 103 956 19.6 16.7 10.3 9.0Qatar QAR 3 303 * 2 978 * 2 879 10.9 3.4 8.9 6.0Lebanon LBP 1 324 061 1 211 477 1 085 400 9.3 11.6 4.0 7.3Pakistan PKR 54 941 * 47 729 43 588 15.1 9.5 2.9 –3.8Kuwait KWD 180 * 163 134 10.3 21.3 5.3 16.7Oman OMR 237 * 216 * 197 9.7 9.4 5.5 6.0Jordan JOD 401 * 371 330 8.3 12.2 3.8 6.8Bahrain BHD 162 * 159 143 1.9 11.1 2.3 8.9Sri Lanka LKR na. 37 342 33 485 na. 11.5 na. 5.3Bangladesh BDT na. na. na. na. na. na. na.Macao MOP 1 215 + 1 087 + 932 11.8 16.7 5.7 13.5

Total 6.6 9.0Africa South Africa11 ZAR 78 711 + 72 479 68 100 8.6 6.4 3.4 2.1

Morocco MAD na. 15 213 14 263 na. 6.7 na. 5.6Nigeria NGN na. 149 217 153 477 na. –2.8 na. –14.5Algeria DZD na. 74 373 71 550 na. 3.9 na. 0.0Egypt15 EGP 5 655 5 174 4 750 9.3 8.9 –1.6 –2.5Angola AOA 88 825 * 72 563 51 556 22.4 40.7 7.9 23.0Tunisia TND na. 947 882 na. 7.4 na. 2.9Kenya KES na. 52 357 43 108 na. 21.5 na. 16.8Namibia NAD na. 2 029 1 756 na. 15.5 na. 10.6Mauritius MUR na. na. 5 235 na. na. na. na.

Total 3.3 3.4Oceania Australia16 AUD 42 565 37 787 35 765 12.6 5.7 9.0 2.7

New Zealand16 NZD 10 747 9 933 9 425 8.2 5.4 3.7 3.0

Total 8.1 2.8World 1.8 1.9


Table VII: Non-life premium volume in USD in 2011

Premium volume Change (in %) 2011 Share of total Share of world(in millions of USD) nominal inflation- business market

Ranking Country 2011 2010 (in USD) adjusted17 2011 (in %) 2011 (in %)North America 1 United States10 667 107 * 655 450 1.8 –1.3 55.4 33.89

8 Canada11 69 045 * 63 396 8.9 1.7 57.0 3.51Total 736 152 718 847 2.4 –1.1 55.5 37.40


14 Brazil 37 240 + 31 017 20.1 7.1 47.6 1.8920 Mexico 12 149 + 10 289 18.1 12.3 54.6 0.6223 Venezuela 10 370 ** 7 851 * 32.1 na. 96.0 0.5324 Argentina 10 250 + 8 180 25.3 20.4 79.8 0.5237 Colombia 5 343 + 4 523 18.1 11.1 70.1 0.2743 Chile 4 091 3 272 25.0 15.1 42.3 0.2154 Peru 1 379 1 201 14.8 8.5 52.8 0.0757 Ecuador 1 105 926 19.4 14.2 82.7 0.0667 Panama 819 686 19.3 12.7 77.8 0.0468 Costa Rica 743 ** 655 13.4 na. 91.2 0.0471 Uruguay 660 554 19.2 na. 76.2 0.0374 Dominican Republic 635 ** 579 9.6 na. 85.8 0.0378 Trinidad and Tobago 591 ** 542 ** 8.9 na. 70.5 0.0381 Jamaica 450 ** 400 12.5 na. 66.5 0.0282 Guatemala 447 ** 391 14.3 na. 80.5 0.02


Europe 2 Germany 131 292 120 802 8.7 1.2 53.6 6.674 United Kingdom 109 486 * 99 671 9.8 1.4 34.3 5.565 France 98 359 * 90 088 9.2 1.8 36.0 5.007 Netherlands 79 722 * 73 727 8.1 0.6 71.9 4.059 Italy 55 426 52 285 6.0 –1.8 34.5 2.82

12 Russia 42 071 40 742 3.3 11.3 97.3 2.1413 Spain 40 731 * 38 905 4.7 –3.4 50.9 2.0715 Switzerland 28 494 + 23 929 19.1 1.2 44.8 1.4516 Belgium 15 140 * 13 961 8.4 –0.2 36.8 0.7718 Austria 13 300 + 12 193 9.1 0.6 57.7 0.6821 Denmark 11 208 10 446 7.3 –0.5 34.3 0.5725 Sweden 10 150 + 8 806 15.3 0.9 24.1 0.5226 Poland 9 870 + 8 783 12.4 6.7 51.7 0.5027 Norway 9 767 8 644 13.0 3.4 43.1 0.5028 Ireland 9 211 * 8 721 * 5.6 –0.6 17.6 0.4730 Turkey 8 473 7 786 8.8 14.0 84.3 0.4334 Portugal 5 779 ** 5 580 + 3.6 –4.8 35.4 0.2938 Finland 4 997 + 4 553 9.7 1.1 19.7 0.2540 Czech Republic 4 694 4 410 6.4 –3.3 53.6 0.2444 Greece 3 948 ** 4 058 –2.7 na. 57.4 0.2046 Luxembourg 3 134 + 2 910 7.7 –1.0 13.3 0.1647 Ukraine 2 916 * 2 794 4.3 –4.8 94.6 0.1548 Slovenia 2 066 ** 1 907 8.3 na. 68.7 0.1049 Romania 2 053 + 2 102 –2.3 –12.0 78.8 0.1051 Hungary 1 772 1 838 –3.6 –10.6 44.7 0.0952 Slovakia 1 510 * 1 395 8.2 0.1 52.6 0.0853 Malta 1 497 ** 1 361 10.0 na. 68.2 0.0855 Croatia 1 256 + 1 235 1.7 –3.5 73.4 0.0663 Bulgaria 968 948 2.1 –6.5 85.6 0.0572 Serbia 656 616 6.4 –8.7 83.9 0.0376 Cyprus 624 * 583 7.1 –1.4 53.5 0.0380 Liechtenstein 496 493 0.5 –14.6 9.3 0.03


Asia 3 Japan13 130 741 ** 117 246 + 11.5 2.8 19.9 6.646 PR China 87 319 + 71 628 21.9 10.4 39.4 4.44

10 South Korea13 51 223 ** 42 905 + 19.4 11.0 39.3 2.6017 Taiwan 14 283 12 505 14.2 4.9 18.2 0.7319 India13 12 187 10 395 17.2 13.5 16.8 0.6231 Singapore 8 188 + 6 688 22.4 7.3 42.1 0.4232 Iran14 7 555 * 5 312 42.2 19.7 91.4 0.3833 Thailand 6 028 + 5 285 14.1 5.6 39.5 0.3135 Israel 5 770 5 223 10.5 2.2 46.3 0.2936 United Arab Emirates12 5 415 * 4 893 + 10.7 9.7 81.5 0.2839 Malaysia13 4 965 * 4 434 12.0 5.6 34.8 0.2541 Saudi Arabia 4 682 * 4 111 13.9 8.5 94.2 0.2442 Indonesia 4 655 * 3 839 + 21.2 11.3 33.0 0.2445 Hong Kong 3 293 + 3 080 6.9 1.8 11.8 0.1759 Vietnam 1 027 + 916 12.1 4.5 55.7 0.0560 Philippines 991 * 865 14.6 5.4 34.4 0.0561 Kazakhstan 989 823 20.2 10.3 82.6 0.0565 Qatar 908 * 818 * 10.9 8.9 94.4 0.0566 Lebanon 878 804 9.3 4.0 71.9 0.0473 Pakistan 636 * 560 13.6 2.9 46.3 0.0375 Kuwait 627 * 569 10.2 5.3 77.2 0.0377 Oman 617 * 562 * 9.7 5.5 80.5 0.0379 Jordan 565 * 522 8.3 3.8 90.9 0.0383 Bahrain 431 * 423 1.9 2.3 74.4 0.0284 Sri Lanka 382 ** 330 15.7 na. 54.5 0.0286 Bangladesh 255 ** 229 ** 11.2 na. 24.4 0.0188 Macao 152 + 136 + 11.8 5.7 27.9 0.01


Africa 22 South Africa11 10 842 + 9 908 9.4 3.4 20.7 0.5550 Morocco 1 989 1 807 10.0 na. 69.6 0.1056 Nigeria 1 153 ** 993 16.1 na. 74.1 0.0658 Algeria 1 099 ** 1 000 9.9 na. 91.5 0.0662 Egypt15 973 939 3.7 –1.6 56.8 0.0564 Angola 950 * 790 20.3 7.9 95.0 0.0569 Tunisia 694 ** 662 4.8 na. 85.4 0.0470 Kenya 686 ** 661 3.8 na. 66.2 0.0385 Namibia 303 ** 277 9.5 na. 31.3 0.0287 Mauritius 218 ** 180 ** 20.8 na. 35.5 0.01


Oceania 11 Australia16 43 899 ** 34 680 26.6 9.0 49.3 2.2329 New Zealand16 8 503 ** 7 159 18.8 3.7 84.6 0.43


World 1 968 179 1 819 310 8.2 1.8 42.8 100.00


Table VIII: Insurance density: premiums1 per capita in USD in 2011

Ranking Country Total business Life business Non–life businessNorth America 14 United States10 3 846 * 1 716 + 2 130 *

16 Canada11 3 529 * 1 519 * 2 010 *Total 3 815 1 697 2 118

Latin America and Caribbean 35 Trinidad and Tobago 622 ** 184 ** 439 **37 Chile 559 323 23745 Brazil 398 + 208 + 189 +48 Venezuela 367 ** 15 ** 352 **49 Argentina 315 + 64 + 251 +51 Panama 295 66 22955 Uruguay 256 61 19556 Jamaica 246 ** 82 ** 163 **58 Mexico 193 + 88 + 106 +60 Costa Rica 172 ** 15 ** 157 **62 Colombia 163 + 49 + 114 +68 Ecuador 91 16 7570 Peru 89 42 4774 Dominican Republic 74 ** 10 ** 63 **79 Guatemala 38 ** 7 ** 30 **

Total 261 110 150Europe 1 Switzerland 8 012 + 4 421 + 3 591 +

2 Netherlands 6 647 * 1 870 * 4 777 *3 Luxembourg1 5 974 * 3 748 * 2 226 +4 Denmark 5 619 * 3 858 * 1 7606 Finland 4 716 + 3 788 928 +7 United Kingdom1 4 535 * 3 347 * 1 188 *8 Sweden 4 455 + 3 382 1 074 +9 Ireland1 4 449 * 3 367 * 1 082 *

10 Norway1 4 251 2 604 1 64712 France1 4 041 * 2 638 + 1 403 *15 Belgium1 3 622 * 2 359 * 1 262 *19 Germany1 2 967 + 1 389 + 1 57820 Liechtenstein 2 849 2 822 2821 Austria 2 740 + 1 159 + 1 581 +23 Italy1 2 530 1 696 83425 Spain 1 729 * 849 * 880 *27 Portugal 1 523 ** 985 ** 538 **28 Slovenia 1 464 ** 459 ** 1 006 **29 Cyprus 1 435 * 668 * 767 *31 Malta 1 118 ** 757 ** 361 **34 Czech Republic 832 + 386 + 44536 Greece 608 ** 259 ** 349 **39 Slovakia 528 * 250 * 278 *41 Poland 500 + 242 + 258 +46 Hungary 397 220 17847 Croatia 389 + 104 + 286 +50 Russia 303 8 29563 Bulgaria 151 22 12964 Turkey 136 21 11565 Romania 122 + 26 + 96 +66 Serbia 107 17 9075 Ukraine 68 * 4 * 65 *

Total 1 886 1 083 802Asia 5 Japan13 5 169 ** 4 138 ** 1 031 **

13 Hong Kong 3 904 + 3 442 + 462 +17 Taiwan 3 371 2 757 61418 Singapore1 3 106 + 2 296 + 810 +22 South Korea13 2 661 ** 1 615 ** 1 045 **26 Israel 1 650 885 76530 United Arab Emirates12 1 380 * 255 * 1 126 *33 Macao 980 + 706 + 273 +38 Qatar 530 * 30 + 500 *40 Malaysia13 502 * 328 * 175 *43 Bahrain 425 ** 109 ** 316 *52 Kuwait 289 ** 66 ** 223 *53 Lebanon 287 81 20654 Oman 270 ** 53 ** 217 *57 Thailand 222 + 134 + 88 +59 Saudi Arabia 177 * 10 * 167 *61 PR China 163 + 99 + 64 +67 Jordan 99 * 9 * 90 *69 Iran14 111 10 10173 Kazakhstan 74 13 6176 Indonesia 60 * 40 * 20 *77 India13 59 * 49 * 1081 Sri Lanka 33 ** 15 ** 18 **82 Philippines 30 * 20 * 10 *84 Vietnam 21 + 9 + 12 +87 Pakistan 8 ** 4 ** 4 *88 Bangladesh 7 ** 5 ** 2 **

Total 314 229 85Africa 32 South Africa11 1 037 * 823 * 215 +

42 Mauritius 470 ** 303 ** 167 **44 Namibia 418 ** 287 ** 131 **71 Morocco 89 ** 27 ** 6272 Tunisia 77 ** 11 ** 66 **78 Angola 51 * 3 * 48 *80 Algeria 33 ** 3 ** 31 **83 Kenya 25 ** 8 ** 16 **85 Egypt15 21 9 1286 Nigeria 10 ** 2 ** 7 **

Total 65 44 21Oceania 11 Australia 4 094 ** 2 077 ** 2 017 **

24 New Zealand 2 277 ** 351 ** 1 926 **Total 2 759 1 299 1 460

World3 661 378 283


Table IX: Insurance penetration: premiums1 as a % of GDP in 2011

Ranking Country Total business Life business Non-life businessNorth America 13 United States10 8.1 * 3.6 + 4.5 *

18 Canada11 7.0 * 3.0 * 4.0 *Total 7.9 3.5 4.4

Latin America and Caribbean 33 Jamaica 4.5 ** 1.5 ** 3.0 **36 Chile 4.1 2.4 1.840 Venezuela 3.4 ** 0.1 ** 3.3 **41 Panama 3.4 0.8 2.643 Brazil 3.2 + 1.7 + 1.5 +44 Trinidad and Tobago 3.2 ** 0.9 ** 2.2 **47 Argentina 2.9 + 0.6 + 2.3 +54 Colombia 2.3 + 0.7 + 1.6 +58 Costa Rica 2.0 ** 0.2 ** 1.8 **59 Ecuador 2.0 0.3 1.661 Mexico 1.9 + 0.9 + 1.1 +63 Uruguay 1.8 0.4 1.470 Peru 1.5 0.7 0.873 Dominican Republic 1.3 ** 0.2 ** 1.1 **77 Guatemala 1.2 ** 0.2 ** 1.0 **

Total 2.8 1.2 1.6Europe 2 Netherlands 13.2 * 3.7 * 9.5 *

4 United Kingdom1 11.8 * 8.7 * 3.1 *8 Switzerland 10.0 + 5.5 + 4.5 +9 Finland 9.5 + 7.7 1.9 +

10 France1 9.5 * 6.2 + 3.3 *11 Denmark 9.4 * 6.4 * 2.912 Ireland1 9.1 * 6.9 * 2.2 *15 Sweden 7.9 + 6.0 1.9 +16 Belgium1 7.7 * 5.0 * 2.7 *17 Italy1 7.0 4.7 2.319 Germany1 6.8 + 3.2 + 3.620 Portugal 6.8 ** 4.4 ** 2.4 **23 Slovenia 5.9 ** 1.8 ** 4.0 **25 Austria 5.5 + 2.3 + 3.2 +26 Spain 5.4 * 2.6 * 2.7 *28 Malta 5.2 ** 3.5 ** 1.7 **29 Luxembourg1 5.2 * 3.2 * 1.9 +32 Cyprus 4.7 * 2.2 * 2.5 *35 Norway1 4.3 2.6 1.738 Czech Republic 3.9 + 1.8 + 2.139 Poland 3.7 + 1.8 + 1.9 +48 Slovakia 2.9 * 1.4 * 1.5 *50 Hungary 2.8 1.5 1.251 Croatia 2.7 + 0.7 + 2.0 +53 Russia 2.4 0.1 2.355 Greece 2.3 ** 1.0 ** 1.3 **57 Bulgaria 2.1 0.3 1.860 Ukraine 2.0 * 0.1 * 1.9 *65 Serbia 1.7 0.3 1.566 Liechtenstein 1.7 1.7 0.071 Romania 1.5 + 0.3 + 1.2 +74 Turkey 1.3 0.2 1.1

Total 7.1 4.1 3.0Asia 1 Taiwan 17.0 13.9 3.1

5 South Korea13 11.6 ** 7.0 ** 4.6 **6 Hong Kong 11.4 + 10.1 + 1.4 +7 Japan13 11.0 ** 8.8 ** 2.2 **

24 Singapore1 5.9 + 4.3 + 1.5 +30 Israel 5.2 2.8 2.431 Malaysia13 5.1 * 3.3 * 1.8 *34 Thailand 4.4 + 2.7 + 1.7 +37 India13 4.1 * 3.4 * 0.745 PR China 3.0 + 1.8 + 1.2 +46 Lebanon 2.9 0.8 2.152 Bahrain 2.4 ** 0.6 ** 1.8 *56 Jordan 2.2 * 0.2 * 2.0 *62 United Arab Emirates12 1.8 * 0.3 * 1.5 *67 Indonesia 1.7 * 1.1 * 0.6 *68 Macao 1.6 + 1.2 + 0.4 +69 Vietnam 1.5 + 0.7 + 0.9 +72 Iran14 1.8 * 0.2 1.7 *75 Philippines 1.3 * 0.8 * 0.4 *76 Sri Lanka 1.2 ** 0.6 ** 0.7 **78 Oman 1.1 ** 0.2 ** 0.9 *80 Bangladesh 0.9 ** 0.7 ** 0.2 **81 Saudi Arabia 0.9 * 0.1 * 0.8 *83 Kazakhstan 0.7 0.1 0.685 Pakistan 0.7 ** 0.4 ** 0.3 *87 Kuwait 0.5 ** 0.1 ** 0.4 *88 Qatar 0.5 * 0.0 + 0.5 *

Total 5.8 4.3 1.6Africa 3 South Africa11 12.9 * 10.2 * 2.7 +

14 Namibia 8.0 ** 5.5 ** 2.5 **27 Mauritius 5.2 ** 3.4 ** 1.9 **42 Kenya 3.2 ** 1.1 ** 2.1 **49 Morocco 2.9 ** 0.9 ** 2.064 Tunisia 1.8 ** 0.3 ** 1.5 **79 Angola 1.1 * 0.1 * 1.0 *82 Egypt15 0.7 0.3 0.484 Algeria 0.7 ** 0.1 ** 0.6 **86 Nigeria 0.6 ** 0.2 ** 0.5 **

Total 3.6 2.5 1.2Oceania 21 New Zealand 6.1 ** 0.9 ** 5.2 **

22 Australia 6.0 ** 3.0 ** 3.0 **Total 5.9 2.8 3.1

World3 6.6 3.8 2.8


Table X: Macroeconomic indicators in 2011

Gross domestic product Exchange ratePopulation Real change local currency per USD

Ranking (millions) USD bn (in %) Inflation rate (in %) Changeby GDP Country 2011 2011 2011 2010 2011 2010 2011 2010 (in %)

North America 1 United States 313.2 14 957 1.7 3.0 3.1 1.6 1.00 1.00 0.0011 Canada 34.3 1 737 2.5 3.2 2.9 1.8 0.99 1.03 –3.97

Total 347.6 16 694 1.8 3.0Latin America and Caribbean

6 Brazil 196.9 2 473 2.8 7.6 6.6 5.0 1.67 1.76 –4.8414 Mexico 115.0 1 155 4.0 5.6 3.4 4.2 12.42 12.64 –1.6827 Argentina 40.8 442 8.9 9.1 9.8 10.5 4.11 3.90 5.4933 Colombia 46.9 325 5.5 4.3 3.4 2.3 1 847.00 1 898.57 –2.7234 Venezuela 29.4 315 4.2 –1.6 26.1 28.2 4.30 4.26 0.8844 Chile 17.3 233 6.3 5.1 3.0 3.0 483.76 510.23 –5.1952 Peru 29.4 174 6.7 8.8 3.4 1.5 2.76 2.83 –2.3163 Ecuador 14.7 68 8.0 3.6 4.5 3.6 1.00 1.00 0.0068 Dominican Republic 10.1 57 4.5 7.8 8.3 6.3 38.08 36.88 3.2771 Uruguay 3.4 48 5.7 8.5 8.1 6.7 19.22 20.06 –4.1672 Guatemala 14.8 47 3.3 2.8 7.1 3.9 7.80 8.06 –3.1476 Costa Rica 4.7 41 4.0 4.1 4.9 5.7 505.66 525.83 –3.8479 Panama 3.6 31 9.6 7.5 5.9 3.5 1.00 1.00 0.0081 Trinidad and Tobago 1.3 27 0.9 –0.6 4.0 10.5 6.41 6.38 0.5584 Jamaica 2.8 15 1.2 –1.2 7.1 12.6 86.19 87.20 –1.15

Total18 591.9 5 592 4.1 5.7Europe 4 Germany 81.7 3 574 3.4 3.5 2.3 1.2 0.72 0.75 –4.74

5 France 65.2 2 778 1.7 1.4 2.1 1.5 0.72 0.75 –4.747 United Kingdom 62.8 2 420 0.8 2.1 4.5 3.3 0.62 0.65 –3.578 Italy 60.7 2 197 0.4 1.4 2.8 1.5 0.72 0.75 –4.749 Russia 142.8 1 808 3.7 4.3 9.0 7.1 29.38 25.00 17.52

12 Spain 46.3 1 494 0.7 –0.1 3.2 1.8 0.72 0.75 –4.7417 Netherlands 16.7 841 1.3 1.6 2.3 1.3 0.72 0.75 –4.7418 Turkey 73.7 775 8.5 9.2 6.5 8.6 1.67 1.50 11.5219 Switzerland 7.9 636 1.9 2.7 0.2 0.7 0.89 1.04 –14.8421 Sweden 9.5 534 4.0 5.8 3.0 1.2 6.49 7.20 –9.8522 Poland 38.2 518 4.0 4.0 3.5 2.7 2.96 3.02 –1.7623 Belgium 10.9 516 1.9 2.3 3.5 2.2 0.72 0.75 –4.7424 Norway 4.9 492 1.7 0.7 1.3 2.4 5.60 6.05 –7.3228 Austria 8.4 419 3.1 2.4 3.3 1.8 0.72 0.75 –4.7432 Denmark 5.6 334 1.1 1.4 2.8 2.3 5.36 5.62 –4.7035 Greece 11.3 297 –6.8 –4.4 3.3 4.7 0.72 0.75 –4.7437 Finland 5.4 266 2.9 3.7 3.4 1.2 0.72 0.75 –4.7442 Portugal 10.6 239 –1.5 1.4 3.7 1.4 0.72 0.75 –4.7445 Czech Republic 10.5 227 2.0 2.7 2.0 1.2 17.70 19.10 –7.3447 Ireland 4.5 218 1.0 –0.4 1.2 –1.6 0.72 0.75 –4.7451 Romania 21.4 175 2.0 –1.6 6.5 6.1 3.05 3.18 –4.0755 Ukraine 45.2 157 4.5 4.2 10.0 9.4 7.97 7.94 0.4057 Hungary 10.0 143 1.8 1.3 4.2 4.7 201.04 207.94 –3.3261 Slovakia 5.4 99 3.2 4.2 3.0 0.7 0.72 0.75 –4.7465 Croatia 4.4 64 0.5 –1.2 2.5 1.1 5.34 5.50 –2.8066 Luxembourg 0.5 59 1.1 2.7 3.6 2.8 0.72 0.75 –4.7669 Bulgaria 7.5 54 1.5 0.1 4.0 3.0 1.41 1.48 –4.7970 Slovenia 2.1 51 1.6 1.4 2.5 2.1 0.72 0.75 –4.7574 Serbia 7.3 45 1.6 1.8 10.0 6.8 73.35 77.73 –5.6482 Cyprus 0.8 25 0.5 1.1 3.5 2.6 0.72 0.75 –4.7487 Malta 0.4 9 1.8 2.9 2.4 2.0 0.72 0.75 –4.7488 Liechtenstein 0.0 6 2.1 2.3 0.2 0.7 0.89 1.04 –14.84

Total18 812.6 21 693 2.1 2.3Asia 2 PR China 1 363.7 7 296 9.3 10.5 5.4 3.3 6.46 6.77 –4.52

3 Japan 126.8 5 940 –0.7 3.2 –0.1 –0.6 78.89 85.65 –7.8910 India 1 232.8 1 763 6.8 8.4 8.5 12.0 47.88 45.57 5.0515 South Korea 49.0 1 124 3.6 6.2 3.8 3.2 1 110.53 1 150.39 –3.4616 Indonesia 235.3 845 6.5 6.2 5.4 5.1 8 789.38 9 085.01 –3.2520 Saudi Arabia 28.1 577 6.8 4.6 5.0 5.3 3.75 3.75 0.0025 Taiwan 23.3 461 4.6 10.9 1.4 1.0 29.47 31.65 –6.8826 Iran 74.8 456 2.5 22.4 12.4 10 561.80 10 254.20 3.0030 United Arab Emirates 4.8 366 4.1 1.4 0.9 0.9 3.67 3.67 0.0031 Thailand 68.6 346 0.2 7.9 3.8 3.3 30.47 31.70 –3.8736 Malaysia 28.4 282 5.1 7.3 3.2 2.1 3.05 3.14 –2.6938 Singapore 4.9 260 5.0 14.9 5.2 2.8 1.26 1.36 –7.7439 Hong Kong 7.1 243 5.1 7.1 5.3 2.3 7.78 7.77 0.1941 Israel 7.5 241 4.8 4.8 3.5 2.7 3.58 3.74 –4.3046 Philippines 95.4 225 3.7 7.7 4.4 3.8 43.31 45.11 –3.9948 Pakistan 176.8 209 2.4 3.8 11.9 13.9 86.32 85.19 1.3249 Qatar 1.8 183 16.3 16.0 1.9 –2.4 3.64 3.64 0.0053 Kazakhstan 16.2 174 7.0 7.3 8.4 7.1 146.62 147.35 –0.5056 Kuwait 2.8 155 4.8 3.1 4.8 4.0 0.29 0.29 0.1458 Vietnam 88.8 120 5.9 6.8 18.6 8.9 20 586.00 18 612.90 10.6059 Bangladesh 150.6 111 6.7 6.1 10.7 8.1 74.15 69.65 6.4664 Oman 2.8 67 5.0 5.5 4.0 3.2 0.38 0.38 0.0067 Sri Lanka 21.0 57 8.2 8.0 4.7 5.9 110.75 113.06 –2.0575 Lebanon 4.3 42 2.0 7.0 5.1 4.0 1 507.50 1 507.50 0.0077 Macao 0.6 34 14.1 26.4 5.7 2.8 8.00 8.00 –0.0380 Jordan 6.3 28 2.3 2.3 4.4 5.0 0.71 0.71 0.0083 Bahrain 1.4 24 1.9 4.5 –0.4 2.0 0.38 0.38 0.00

Total18 4 122.0 22 126 4.8 6.8Africa 29 South Africa 50.5 406 3.1 2.9 5.0 4.3 7.26 7.32 –0.76

40 Nigeria 162.5 242 7.7 7.9 10.8 13.7 154.50 150.30 2.8043 Egypt 82.5 236 1.8 5.1 11.0 11.8 5.81 5.51 5.3950 Algeria 36.0 178 2.9 3.3 4.5 3.9 72.78 74.39 –2.1660 Morocco 32.3 100 4.7 3.7 1.0 1.0 8.09 8.42 –3.8962 Angola 19.6 93 4.0 3.4 13.5 14.5 93.50 91.91 1.7373 Tunisia 10.6 46 –0.4 3.0 3.5 4.4 1.41 1.43 –1.6578 Kenya 41.6 33 4.0 5.6 13.7 4.0 90.28 79.23 13.9485 Namibia 2.3 12 3.7 6.6 4.7 4.5 7.26 7.32 –0.8486 Mauritius 1.3 12 3.8 4.2 6.6 2.9 28.20 30.78 –8.40

Total18 1 044.3 1 879 1.9 4.7Oceania 13 Australia 21.8 1 488 2.0 2.5 3.4 2.8 0.97 1.09 –11.01

54 New Zealand 4.4 164 1.5 2.2 4.3 2.3 1.26 1.39 –8.90Total18 36.0 1 673 2.0 2.5

World 6 954.4 69 656 3.0 4.1

Recent sigma publications

2012 No 1 Understanding profitability in life insurance No 2 Natural catastrophes and man-made disasters in 2011: historic losses surface from record earthquakes and floods No 3 World insurance in 2011: Non-life ready for take-off

2011 No 1 Natural catastrophes and man-made disasters in 2010: a year of devastating and costly events No 2 World insurance in 2010 No 3 State involvement in insurance markets No 4 Product innovation in non-life insurance markets: where little “i” meets big “I” No 5 Insurance in emerging markets: growth drivers and profitability

2010 No 1 Natural catastrophes and man-made disasters in 2009: catastrophes claim fewer victims, insured losses fall

No 2 World insurance in 2009: premiums dipped, but industry capital improved No 3 Regulatory issues in insurance No 4 The impact of inflation on insurers No 5 Insurance investment in a challenging global environment No 6 Microinsurance – risk protection for 4 billion people

2009 No 1 Scenario analysis in insurance No 2 Natural catastrophes and man-made disasters in 2008:

North America and Asia suffer heavy losses No 3 World insurance in 2008: life premiums fall in the industrialised countries – strong

growth in the emerging economies No 4 The role of indices in transferring insurance risks to the capital markets No 5 Commercial liability: a challenge for businesses and their insurers

2008 No 1 Natural catastrophes and man-made disasters in 2007: high losses in Europe No 2 Non-life claims reserving: improving on a strategic challenge No 3 World insurance in 2007: emerging markets leading the way No 4 Innovative ways of financing retirement No 5 Insurance in the emerging markets: overview and prospects for Islamic insurance

2007 No 1 Insurance in emerging markets: sound development; greenfield for agricultural insurance No 2 Natural catastrophes and man-made disasters in 2006: low insured losses No 3 Annuities: a private solution to longevity risk No 4 World insurance in 2006: premiums came back to “life” No 5 Bancassurance: emerging trends, opportunities and challenges No 6 To your health: diagnosing the state of healthcare and the global private

medical insurance industry

2006 No 1 Getting together: globals take the lead in life insurance M & A No 2 Natural catastrophes and man-made disasters 2005:

high earthquake casualties, new dimension in windstorm losses No 3 Measuring underwriting profitability of the non-life insurance industry No 4 Solvency II: an integrated risk approach for European insurers No 5 World insurance in 2005: moderate premium growth, attractive profitability No 6 Credit and surety: solidifying commitments No 7 Securitization – new opportunities for insurers and investors

Swiss Reinsurance Company LtdEconomic Research & ConsultingMythenquai 50/60P.O. Box8022 ZurichSwitzerland

Telephone +41 43 285 2551Fax +41 43 282 [email protected]

Documents

sigma No3/2012 – World insurance in 2011