Consolidation in the life assurance market is likely next year, according to Swiss Re. The reinsu...
Consolidation in the life assurance market is likely next year, according to Swiss Re.
The reinsurer's annual Insurance Review and Outlook has highlighted opportunities for non-life assurers, as premiums look set to continue rising in 2003. However, prospects for life assurers are set to weaken in 2003.
Chief economist, Thomas Hess, predicted premium growth in non-life assurance to be 3% to 5% a year, mainly driven by further price improvements and tighter terms and conditions. However, he warned: 'Little can be expected from investment results in 2003. Profitable technical underwriting is what is needed.'
John Coomber, head of Swiss Re Life and Health, said: 'Insurers need to concentrate on aligning their risk exposure with their capital base and restoring underwriting profitability. As rebuilding bal- ance sheets has become an industry priority, we can expect further consolidation to reduce costs and improve capital efficiency.'
