The property and casualty (P&C) industry achieved a global underwriting profit last year, helped by relatively light catastrophe losses in comparison with 2011 and 2012, according Aon Benfield's annual Insurance Risk Study.
Combined ratios varied significantly by country, and the study reveals many profitable areas of growth in the global insurance market.
For P&C business, the average insurer combined ratio for 2013 across the top 50 global markets was 99.1 percent, with 21 markets achieving a combined ratio below 95 percent, and 10 markets achieving a combined ratio below 90 percent.
The study highlights that global insurance and reinsurance premium reached a record US$4.9 trillion in 2013 – a 0.9 percent increase over 2012 – driven primarily by growth in the P&C and health insurance segments.
Global insurance and reinsurance capital reached a record US$4 trillion.
Aon Benfield Analytics forecasts that global P&C insurance premium will increase by 18 percent over the next five years to reach US$1.6 trillion by 2018, driven by strong growth in China.