(Bloomberg) – Life insurance in advanced economies will return to growth this year as sales in the U.S. reverse a contraction, spurring returns for providers, said Swiss Re Ltd., the world’s second-biggest reinsurer.
Life policy premiums in developed economies fell 0.2 percent to $2.2 trillion in 2013, led by a 7.7 percent slide in the U.S. That crimped growth in the wider insurance industry to 1.4 percent from 2.5 percent in 2012, Swiss Re said in an emailed report published from Zurich today.
“Life premium growth is expected to resume in the advanced economies and improve in the emerging markets,” Swiss Re said. “In North America premium growth will return as the labor market and economy strengthen.”
Slow recovery in the U.S. and other advanced economies from a financial crisis that erupted in 2008 has hampered sales growth for insurers. The strengthening global economy is also expected to support non-life insurance, with total industry premiums seen increasing this year from $4.64 trillion in 2013, Swiss Re said.