The latest data is provided by SIGMA Report No. 3/2017 for the year 2016. As usual the presentation is excellent with generalizations of trends and specific details of 88 Markets of the World with Continent Wise data of Life and Non-Life Premiums in US$ after converting original currency data of each market at adjusted rates of exchange to US$.
Global Reinsurance Premiums are estimated with assumed overall Reinsurance Premium of around 17% of Non-Life Premiums and around 2% of Life Insurance Premiums.
Following are various Annexures giving analytical data of Global Life and Non-Life Insurance Premiums as compared to previous year.
Statement A
GLOBAL Insurance Date Based on Sigma
Figures in MLNS of US$
2013 2014 2015 2016
1. Global Premium
Life 2609 2554 2534 2617
Non- Life 2033 2124 2020 2115
TOTAL 4542 4778 4.554 4732
2. Estimated P/l Premium
Life 55 55 58 60
Non-Life 395 395 402 405
TOTAL 4-5.0 450 460 465
3. Global (GDP bin of US$)
GLOBAL GDP 71500 77394 73094 75335
USA’S Share 15000 17420 18090 18003
% 21% 22.50% 24.75% 24.50%
4. Global Population in MLNs
Population 7100 7220 7350 7414
5. Per Capita Global Insurance
Premium (bin of US$) 665 662 022 038
Comparative Global Data of Premiums 2013 to 2016.
2016 Total Premium of $ 4732 is less than 4778 in 2014.
Reinsurance Premium are estimated
Global GDP was higher in 2014 for $77394 MLNS as against $75335 MLNS in 2016
Per Capita Global Premium was $665 in 2013 which was highest in last 4 years. 2016 Per Capita Premium is
$638.
Statement B
Global Premium -2016
US$ BLNS
Sr. Continent Life Non Life Total % No
1 North America 608.82 858.09 1466.91 31
2 Latin America 69.21 79.29 148.5 3.08
3 Europe 858.61 611.41 1470.02 31.06
4 Asia 1000.27 493.26 1493.53 31.62
5 Africa 40.57 20.14 60.71 1_28
6 Oceania 39.54 52.98 92.52 1.96
Total 2617.02 2115.2 4732.19 100
Global Premium for 2016
North America’s share is 31%
Europe’s share is 31.06% and
Asia’s share is 31.62% which is the highest.
Statement C
SIGMA Reports Global Premiums
US$ in Billions
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
North Life 464.38 501.14 503.77 524.30 551.33 572.86 623.95 626.07 536.00 557.80 589.38 619.54 585.00 580.36 601.84 608.82
A America Non-Life 484.95 548.38 610.88 643.25 670.11 685.44 706.11 719.75 702.58 723.86 736.15 773.88 800.00 825.46 823.40 858.09
Total 949.33 1,049.52 1,114.65 1,167.55 1,221.44 1,258.30 1,330.06 1,345.82 1,238.58 1,281.66 1,325.53 1,393.42 1,385.00 1,405.82 1,431.24 1,466.91
Latin Life 13.58 15.40 16.07 19.36 23.26 28.92 35.81 40.88 43.63 54.55 65.20 71.83 81.00 75.25 66.20 69.21
B America Non-Life 27.63 24.54 25.63 28.87 35.34 42.51 51.57 64.04 67.29 73.32 89.07 96.90 103.00 112.98 91.94 79.29
Total 41.21 39.94 41.70 48.23 58.60 71.43 87.38 104.92 110.92 127.87 154.27 168.73 184.00 188.23 158.14 148.50
Life 464.36 500.49 584.71 694.56 769.34 940.59 1,035.94 1,050.81 953.52 965.66 937.17 876.14 947.00 1,002.73 872.12 858.61
C Europe Non-Life 298.04 346.00 437.46 503.46 518.58 544.30 644.75 702.26 657.11 654.78 713.70 658.74 685.00 694.80 596.76 611.41
Total 762.40 846.49 1,022.17 1,198.02 1,287.92 1,484.89 1,680.69 1,753.07 1,610.63 1,620.44 1,650.87 1,534.88 1,632.00 1,697.53 1,468.88 1,470.02
Life 457.39 478.10 522.34 556.32 573.24 602.27 623.47 690.95 732.27 855.37 941.96 957.71 899.00 892.32 904.57 1,000.27
D Asia Non-Life 137.74 148.91 163.37 179.32 186.54 198.55 217.12 242.41 257.18 305.75 356.18 388.51 380.00 425.25 446.41 493.26
Total 595.13 627.01 685.71 735.64 759.78 800.82 840.59 933.36 989.45 1,161.12 1,298.14 1,346.22 1,279.00 1,317.57 1,350.98 1,493.53
Life 18.27 18.09 22.18 26.24 28.54 35.47 38.11 37.87 32.56 47.24 46.30 49.89 50.00 45.80 43.70 40.57
E Africa Non-Life 6.28 6.34 8.85 11.07 12.23 14.20 15.19 16.85 16.72 19.48 21.78 22.00 23.00 23.18 20.42 20.14
Total 24.55 24.43 31.03 37.31 40.77 49.67 53.30 54.72 49.28 66.72 68.08 71.89 73.00 68.98 64.12 60.71
Life 21.20 20.84 23.46 27.03 27.80 29.21 35.81 43.84 33.59 39.45 46.81 45.45 47.00 58.10 45.39 39.54
F Oceania Non-Life 14.44 16.61 21.78 28.14 29.22 29.10 33.01 33.88 33.65 41.71 52.63 51.62 42.00 42.04 51.51 52.98
Total 35.64 37.45 45.24 55.17 57.02 58.31 68.82 77.72 67.24 81.16 99.44 97.07 89.00 100.14 96.90 92.52
Global Life 1439.18 1,534.06 1,672.53 1,847.81 1,973.51 2,209.32 2,393.09 2,490.42 2,331.57 2,520.07 2,626.82 2,620.56 2,609.00 2,654.56 2,533.82 2,617.00
Premium Non-Life 969.08 1,090.78 1,267.97 1,394.11 1,452.02 1,514.10 1,667.75 1,779.19 1,734.53 1,818.90 1,969.51 1,991.65 2,033.00 2,123.71 2,030.44 2,115.00
Total 2,408.26 2,624.84 2,940.50 3,241.92 3,425.53 3,723.42 4,060.84 4,269.61 4,066.10 4,338.97 4,596.33 4,612.21 4,642.00 4,778.27 4,564.26 4,732.00
Estimated Life 14.00 15.00 33.00 37.00 40.00 45.00 50.00 50.00 46.00 50.00 55.00 55.00 55.00 55.00 58.00 60.00
Reinsurance Non-Life 170.00 190.00 222.00 245.00 255.00 275.00 300.00 320.00 320.00 327.00 385.00 386.00 395.00 395.00 402.00 405.00
Premium Total 184.00 205.00 255.00 282.00 295.00 320.00 350.00 370.00 366.00 377.00 440.00 441.00 450.00 450.00 460.00 465.00
* Cat losses increase reinsurance premium since 2010
Comparative Insurance Premium 2001 to 2016
Last 4 years Global Premium in MLNS of $ is without significant Growth. Highest Global Premium was in 2014 for $ 4778.27 MLNSas against Global Premiums of $ 4642 MLNS in 2013, $ 4554.26 in 2015 and $4732 MLNS in 2016.
Reinsurance Premiums are estimated at around 17% of Non-Life Premium and around 2 % of Life Premiums.
ASIA’S Growth continuous and Total Premiums of Asia in 2016 for $ 1493.53 MLNS are more than Europe’s Total Premium of $ 1470 MLNS!
Statement D
Global Life Insurance Premiums – 2016
Figures in US$ BINS
Sr. Country Gross Life Premium % of Total Population Per Capita Life % of Gross No. USD$ BINS Premium in MLNS Premium Life Premium
1 USA 558.85 21.35 324 1,725.00 21.35
2 Japan 354.06 13.53 126.3 2,803.00 13.53
3 R. R. China 262.62 10.04 1382.9 190.00 10.04
4 U.K. 199.37 7.62 65.7 3,033.00 7.62
5 France 152.82 5.84 66.9 2,228.00 5.84
6 Italy 122A4 4.68 61 1,890.00 4.68
7 S. Korea 104.17 3.98 50.8 2,050.00 3.98
Total 1,754.33 67.04 2077.6 13,919.00 67.04
8 Germany 94.66 3.62 82.6 1,150.00 3.62
9 Taiwan 84.49 3.23 23.5 3,599.00 3.23
10 India 61.82 2.36 1328.8 47.00 2.36
11 Hongkong 51.94 1.98 7.4 7,066.00 1.98
12 Spain 34.46 1.32 46.3 744.00 1.32
13 Canada 49.98 L91 36.2 1,379.00 L91
14 Brazil 41.01 L57 209.8 196.00 L57
15 Australia 37.69 L44 24.2 1,559.00 L44
Total 456.05 17.43 1758.8 15,740.00 17.43
Grand Total 2,210.38 84.46 3836.4 29,659.00 84.46
World Premium 2,617.02 100.00 7414.2 353.00 100
Global Life Insurance Premium 2016
First 7 Countries write 67.04 % of global Premium and first 15 countries write 84.46% of Global Premium.
Higher per Capita Life Premium is in Hongkong for $ 7066 and next is Taiwan for $ 3599 U.K is third with Per Capita Life Premium 3033.
Statement E
Global Non-Life Premiums – 2016
Figures in US$ BLNS
Sr. Country Non Life J.G. of Total Population in Per Capita % of Gross No. Premium Premium MLNS Premium Premium
1 USA 793.64 37.52 324 2,449.00 37.52
2 R. R. China 203.52 9.62 1382.9 147.00 9.62
3 Germany 120.36 5.69 82.6 1,397.00 5.69
4 Japan 117.24 5.54 126.3 928.00 5.54
5 U.K. 104.84 4.96 65.7 1,595.00 4.96
6 France 84.83 4.01 66.9 1,168.00 4.01
7 S. Korea 68.69 3.25 50.8 1,312.00 3.25
(A) Total 1,493.12 70.59 2099.2 13,996.00 70.59
8 Canada 64.55 3.05 36 1,782.00 3.05
9 Netherland 63.75 3.01 17 3,752.00 3.01
10 Australia 44.47 2.10 24.2 1,839.00 2.10
11 Italy 39.95 1.89 61 609.00 1.89
12 Spain 34.14 1.61 46.3 737.00 1.61
13 Brazil 31.64 1.50 209.8 151.00 1.50
14 Switzerland 27.22 1.29 8.4 3,233.00 1.29
15 India 17.49 0.83 1382.8 13.00 0.83
(B) Total 323.21 15.28 1785.5 12,116.00 15.28
(A + B) Grand Total 1,816.33 85.87 3884.7 21,112.00 85.87
Global Total 2,115.17 100.00 7414.2 285.00 100
Source: SIGMA Reports of July 2017 (3/2017)
Global Non-Life Premium is $ 2115.47 MLNS in 2016 First seven countries write 70.59% and 1st 15 countries write 85.87% of Global Premium.
Per capita Premium is in Netherlands for $ 3752 are against $ 2449 in USA.
P.R. China is next to USA in Non-Life Insurance Premium Voulme.
P.R. China’s premiums are 9.62% as against USA’S BLNS 37.52% of Global Premiums of US$ 2,115.17 BLNS.
Statement F
Global Insurance Premiums – 2016
Rank Country BLNS Total % of Total MLNS Per Capita Total Per Capita Per Capita Non Premium Premium Population Premium Life Premium Life Premium (US$) (US$) (US$) (US$)
1 USA 1352.39 28.58 324 4174 1725 2449
2 Japan 471.3 9.96 126.3 3731 2803 928
3 P.R. China 466.13 9.85 1382.9 337 190 147
4 U.K. 304.21 6.43 65.7 4630 3033 1597
5 France 237.64 5.02 66.9 3396 2228 1168
6 Germany 215.02 4.54 82.6 2548 1151 1397
7 S. Korea 170.86 3.61 50.8 3362 2050 1312
(A) Total 3217.55 67.99 2099.2 1533 843 690
8 Italy 162.38 3.43 61 2499 1890 609
9 Canada 114.52 2.42 36.2 3163 1739 1782
10 Taiwan 101.44 2.14 23.5 4321 3599 722
11 Australia 82.16 1.74 24.2 3397 1559 1839
12 Netherland 80.13 1.69 17.1 4717 965 3752
13 India 79.31 1.68 1328.8 60 47 13
14 Brazil 72.65 1.54 209.8 346 195 151
15 Spain 68.6 1.45 46.3 1482 744 738
(B) Total 761.19 16.09 1746.9 436 240 196
(A + B) 3978.74 84.08 3846.1 1034 568 466
Global 4732.19 100 7414.2 638 353 285
Source :- SIGMA Report 3/2017 World Insurance Premium 2016
Total Global Premium for 2016
First 7 Countries write 67.99% of Global Premiums of $ 4732.19 MLNS and First 15 Countries write 84.08%. USA write $1352.39 BLNS which is 28.58% Global Premium. Japan on Second Rank writes Global Premiums of $ 471.30 BLNS which is 9.96% of Global Premiums. China is ahead of U.K, France and Germany with Global Premiums of 466.13 BLNS which is 9.85% of Global Premiums.
Statement G
First Five Markets Per Capita Premiums
Rank Country Per Capita Premiums Total
Life Non-Life
1 Cayman Islands 595.70 11156-4.60 12,160.30
2 Hongkong 7,065.60 613.20 7,678.80
3 Switzerland 3,700.30 3,233.20 6,933.50
4 Denmark 3,742.40 1,416.30 5,158.70
5 Finland 4,106.10 954.50 5,060.60
First Five Markets with Per Capita Premiums more than any other country of the world are as above. Cayman Islands total Per Capita Premium of $ 12160.30 is the highest in the world with 1st rank.
Statement H
Macroeconomic Indicators – 2016
Sr. MLNS USD Trillion
No. Country Population % GDP 2016 %
1 USA 324 4.37 18.5 24.56
2 P.R. China 1382.09 18.64 11.24 14.92
3 Japan 126.03 1.70 4.95 6.57
4 Germany 82.06 1.11 3.46 4.59
5 U.K. 65.07 0.88 2.63 3.49
6 France 66.09 0.89 2.46 3.27
7 India 1328.08 17.91 2.27 3.01
8 Italy 61 0.82 1.85 2.46
9 Brazil 209.08 2.82 1.8 2.39
10 Canada 36.02 0.49 1.53 2.03
11 S. Korea 50.08 0.68 1.41 1.87
12 Russia 143.04 1.93 1.27 1.69
13 Australia 24.02 0.32 1.26 1.67
14 Spain 46.03 0.62 1.23 1.63
15 Mexico 128.08 1.73 1.04 1.38
Total 4070.77 54.91 56.9 75.53
Others 3343.25 18.43 24.5
100% 7414.02 75.33 100
Source:- SIGMA Report 3/2017 Of July 2017
Macroeconomic Indicators 2016
World GDP for 2016 is US$ 75.33 Trillion
USA is number ONE with $ 18.5 Trillion i.e. 24.56%
P.R. China is Number TWO with $ 11.24 Trillion i.e. 14.92%
Japan is Number THREE with 4.95 Trillion i.e. 6.57%
Thus China is number 2 with 11.24% of the world GDP of $ 75.33 Trillions.
In terms of $ the world GDP in 2016 for 75.33 Trillion is less than 2014 for $ 77.39 Trillions
Despite Recession in 2007-08 USA is the richest Economy for all years upto 2016.
First 15 countries share of Global GDP of $ 75.33 Trillion.
India is the 7th in the rank with $ 2.27 Trillion GDP which is 3.01% of Global GDP.
Statement I
INDIAN MARKET DATA
Based on SIGMA Report of Swiss Re
Figures in BLNS
Gross Direct Premiums Density Penetration
Life Non Life Total Life Non Total Life Non Total Life e Life e
I.Rs. = US$ I.Rs.= US$ I.Rs. = US$ U S$ US$ US$
2001 500.94 9.42 126.11 2.46 627.05 11.88 910 2.40 11.50 2_15% 0_56% 2_71%
2002 55/38 11.52 152.45 3.15 709.83 14.67 10.00 3.00 13.00 2_20% 0_60% 2_80%
2003 662.88 13.59 170.33 3.71 833.21 17.30 12.90 3.50 16.40 2.26% 0.62% 2.88%
2004 786.30 1/50 184.56 4.11 970.86 21.61 15.70 4.00 19.70 2.53% 0.65% 3.18%
2005 1,000.01 22.59 213.54 4.82 1,213.55 27.41 18.30 4.40 22/0 2.53% 0.61% 3.14%
2006 1,560.42 34.58 259.30 5/5 1,819/2 40.33 33.20 5.20 38.40 4.10% 0.60% 4.70%
2007 2,013.51 50.18 304.81 7.60 2,318.32 57.78 40.40 6.20 46.60 4.09% 0.61% 4.70%
2008 2,180/6 48.86 327.12 7.33 2,50/88 56.19 41.20 5.20 46.40 4.00% 0.60% 4.60%
2009 2,736.05 5/12 381.82 7.97 3,117.87 65.09 47.20 6/0 53.90 4.60% 0.60% 520%
2010 3,09/49 6/81 482.48 10.58 3,579.97 78.39 55.70 8/0 64.40 4.40% 0/0% 5.10%
2011 2,893.70 60A4 583.44 12.19 3,47/14 72.63 49.00 10.00 59.00 3.40% 0.70% 4.10%
2012 2,872.00 52.75 712.00 13.08 3,584.00 65.83 42.70 10.50 5320 3.17% 0.78% 3.95%
2013 3,161.00 52.17 612.00 13.40 3,972.00 65.57 41.00 11.00 52.00 3.10% 0.80% 3.90%
2014 3,380.59 55.30 891.94 14.59 4,272.53 69.89 44.00 11.00 55.00 2.60% 0.70% 3.30%
2015 3709.49 56.60 988.52 15.1 4698.51 71.78 43.2 11.5 54.7 2.72% 0.72% 3.44%
2016 4,161.14 61.82 1177.52 17.41 5,338.65 79.31 46.50 13.20 59.70 212% 037% 3.49%
Est
2017 5000.00 1500.00 6500.00
Indian Market Data for 2001 to 2016
Life Insurance Premiums have grown from Rs. 500.94BLN ($ 9.42 BLN) in 2001 to Rs. 4161.14 BLNS ($ 61.82.BLNS) in 2016
Non-Life Insurance Premiums have grown from Rs. 12.11 BLN ($ 2.46 BLN in 2001) to Rs. 1177.52 BLN ($ 17.41 BLNS) in 2016.
Total Insurance Premiums have grown from Rs. 627.05 BLNS ($ 11.88 BLN) in 2001 to Rs. 5338.5 BLNS ($ 71.78 BLNS) in 2016.
Per Capita Life Premium is $ 46.50 Non-Life is $ 13.20 and Total Per-capita Premium of $ 59.70 in 2016.
Overall Insurance Premium is 3.49% of GDP in 2016
India is well behind a small market like South Korea which is having a population of $ 50.8 BLNS with life premium of $ 104.17 BLNS and Non-Life Premium of $ 68.69 BLNS.
Even Taiwan is much ahead of India with life premium of $ 84.49 BLN and Total Premium of $ 101.44 BLNS. Non-Life Premium of Taiwan is almost same as India with $ 16.95 BLNS.
With the current growth of Indian Economy future appears to be far better as all sectors of the Indian Economy are growing with Strength and Stability.
Statement J
NAT CAT INSURED Losses
No.of Insured % of Year Loss Victims Losses Global Events US$ BINS Losses
2007 142 14,630 23.70 84.40%
2008 137 234,842 44.69 85.10%
No. of Insured % of Year Loss Victims Losses Global Events US$ BINS Losses
2009 133 8,977 22.36 85.10%
2010 167 297,127 39.87 91.70%
2011 175 29,026 110.02 95.00%
2012 168 8,948 71.28 92.30%
2013 150 20,201 37.05 82.50%
2014 189 7,066 27.75 80.00%
2015 198 19,365 27.79 75.50%
2016 191 6,884 45.94 85.50%
There are increasing frequencies and severities of Acts of God Perils Losses every year from 2007 to 2016.
2017 also witnesses same trend in USA, Latin America, Europe and Asia.
Conclusion:
In Asia and Africa there is Rate Reduction in Direct Insurance which results into higher cycles of exposures with declining cycles of premiums.
The Acts of God Perils Losses are increasing every year therefore there are restrictive and prohibitive measures imposed by reinsurers worldwide.
Proportional Treaties are not suitable to cover Natural Catastrophe Losses. There are Capped Limits of NAT CAT Losses with minimum commission and also Loss Participation Clause.
The best way to insure and reinsure Acts of God perils is to create a Market Pool and protect the pool by excess of loss reinsurance Treaty Programme. The Market pool will have adequate premium base.
