Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • September 2014
09

Aon: insurance premiums increase to $4.9 trillion

Open-access content Monday 15th September 2014 — updated 4.17pm, Thursday 30th April 2020

Premiums in the global insurance and reinsurance market grew by 0.9% to $4.9 trillion last year, according to Aon Benfield.

Publishing the latest edition of its Insurance risk 2014 report, the reinsurance intermediary revealed that, as at year end 2013, global premiums stood at an all-time high, boosted by the property and casualty, and life and health industry.

Property casualty premium increased 3.5% ($1.4trn), and life premiums shrunk by 2.0% to $0.2trn while health premiums grew by 4.5% to $3.3trn.

'There are many bright spots within today's rapidly evolving insurance marketplace,' said Stephen Mildenhall, global chief executive officer of analytics for Aon.

For many insurers, Big Data is the presumed answer to the question of how to grow profitability in an environment with capital levels, Aon said. The market continues to embrace and adopt Big Data concepts in pricing and underwriting.

The report said that Big Data for insurance often related to Behavioral Data, with the industry engaging in an active search for more detailed and more predictive variables to add to underwriting and pricing algorithms.

'The growth imperative continues to stress many industries, particularly in mature markets. For insurers, the efficiency gains from Big Data often serve to redistribute risks, but not to grow the pie - creating clear winners and losers,' the report stated.

The report also highlighted other emerging trends including, the effects of technology on motor insurance, new capital demands in the US health market and the rising frequency of cyber attacks.

Looking ahead, Aon predicted that global property casualty insurance premium would grow over the next five years, for the overall insurance market and for motor, property and liability.

It said: 'These projections are based on a weighting of historic premium growth rates with projected country GDP and population estimates. By 2018, we expect the global insurance market to grow by 18% to a total direct written premium of $1.6trn.

'Motor insurance will remain the largest property casualty segment, accounting for 47% of total direct written premium, followed by property (33%) and liability (21%).'

By country, the US will remain the largest property casualty insurance market, representing an estimated 37% of global premium. China will surpass Japan to become the second largest market, with an expected 9% of premium.

Mildenhall added that there were many desirable areas for profitable growth in the market today.

He said: 'The continued flow of cheaper alternative capital into the industry provides a competitive cost-advantage to early adopters. The potential pay-off to innovation is higher today than it has been for many years.'

This article appeared in our September 2014 issue of The Actuary.
Click here to view this issue
Filed in
09
Topics
Global

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

New Fast-Growing Team - Actuarial Systems Development

London (Greater)
Excellent Salary Package
Reference
143762

Actuarial Pension Consultant – Scotland/Remote – Up to £90,000 plus bonus

Edinburgh / Glasgow / Remote working
Up to £90,000 + Bonus
Reference
143761

Part Qualified Pensions Actuary– Specialised Pensions Consultancy - Scotland/Remote - Up to £70,000

Edinburgh / Glasgow / Remote working
Up to £70,000 + Bonus
Reference
143760
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ