Swiss Re predicts a China-led insurance market rebound
However this rebound will not come without significant hardship in the short and medium-term. With world GDP contracting 4.1%, one of the largest drops in close to a century (the Great Depression of 1929 to 1932 resulted in a 15% drop), several industries have been left reeling and insurance is not an exception.
Overall, the company estimates that global insurance premiums will grow by 3.4% in 2021 following a 1.4% fall in 2020. Societal resilience, which Swiss Re emphasised in the year, will be crucial, with the US, the UK and Japan expected to see significant fiscal buffer drains in the future.
A time for action
Navigating out of these straits, believes Jerome Jean Haegeli, Swiss Re Group Chief Economist, will be contingent on industry dynamism, reinvigoration and smarter planning:
“For sustainable economic recovery, we need a policy reset. Public policy should focus on areas such as infrastructure, technology and climate. Building new sustainable infrastructure will have a significant impact on GDP growth.
“In addition to smarter spending, policymakers should make more use of public-private partnerships and establish the operational and regulatory frameworks to enable greater participation of private-sector finance, including insurers’ assets, in the real economy,“ he said.
China will lead the way
Despite the considerable damage wrought by the pandemic, Swiss Re notes that non-life insurance demand in advanced markets fared better across Q1 and Q2 than expected. The company anticipates an average annual global growth recovery rate of 3.6% in 2021 and 2022.
The life insurance market has been hit harder: a 4.5% contraction and numerous instances of job loss and reduced purchasing power. Regardless, Swiss Re still anticipates a 3% recovery in 2021 spurred on by the Asian market.
According to this projection, China will lead the world with a 10% growth rate in non-life particularly in the health insurance sector, and 8.5% in life insurance.
Tribe and APOLLO announce national insurance campaign
Tribe Property Technologies in partnership with APOLLO insurance has announced a national insurance campaign to digitise insurance for condominium owners, renters, landlords, and developers across Canada. The aim of the campaign is to make insurance access easier and faster for owners while improving the coverage and protection of condominiums and rental buildings.
According to several surveys, nearly half of 4.5mn rented houses in Canada do not have tenant insurance protection, meaning those individuals and their families are put at risk of fire and water damage.
What does the national insurance campaign include?
According to Tribe, the company is working with APOLLO to ensure that this type of insurance is easier to access. It aims to achieve this by introducing a direct connection to APOLLO's insurance technology from both Tribe's strata and condo management platform and rental software to allow for increased education and awareness for owners into insurance risks and options.
It also includes the future ability for notifications for mid-term cancellations, and plans to offer protection from potential strata/condo corporation deductibles, Tribe said.
"We are excited to partner with APOLLO to bring accessibility, visibility, and education around insurance options to our communities and reflect the current lifestyle expectations of condo owners and residents while protecting the value of their biggest assets", said Joseph Nakhla, Chief Executive Officer of Tribe.
Nakhla added: “This agreement with APOLLO is just the first step under our Digital Services & Partnerships revenue pillar. We will continue to layer on services to drive revenue for Tribe, and bring convenience and savings for our users, with the goal of being able to offer a one-stop-shop to our development partners and the over 100,000 residents in Tribe-managed communities”.
APOLLO uses technology as a channel between insurance brokers, carriers, and their mutual clients, offering insurance options from multiple companies on one integrated online platform.
"We like that Tribe is taking a fresh approach to condo living and building smart homes through tech-enabled service, and an integration with their Community Platform supports our goals of making insurance more accessible and supporting the needs of communities”, said Jeff McCann, Chief Executive Officer of Apollo.