Swiss Re: profitability of western life insurers remains subdued

Carmen Reichman
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Life insurers in Western Europe are set to continue to suffer from shrinking markets and low profitability, while globally markets recover, according to global reinsurer Swiss Re.

In its study on world insurance in 2012, Swiss Re found that weak economic growth and high unemployment have curbed demand for life insurance products in Europe, while low interest rates have continued to dampen investment income. However, overall, the study found that global insurance premiums saw a rise of 2.4% to $4.6trn despite the challenges in western economies. The study, which is based on 147 insurance markets, predicted that globally premiums would continue to rise at a moderate pace in the near term as flagging life insurance demand in Europe is offset by growth in emerging ...

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