Global premiums in the life market are expected to grow by around 4% in real terms in 2014 and 2015, according to Swiss Re.
In its Global insurance review 2013 and outlook 2014/15 report, Swiss Re said such growth will support on-going premium growth in the non-life primary market, particularly in emerging markets, with reinsurance premiums following suit.
However, life reinsurance premiums are expected to continue to decline in advanced markets, while rising by about 6% annually in emerging markets. Alternative capital has increased in recent years, putting pressure on prices and margins, particularly in the US catastrophe business.
The "momentum" in global economic growth achieved this year will continue into 2014. The US economy is still growing and the euro area, while not expected to accelerate rapidly, has returned to growth.
The weaker yen has boosted growth and increased inflation in Japan, but the sustainability of this recent economic strength is uncertain. China's growth trend is close to 7.5%, down from 10% previously, Swiss Re said.
Kurt Karl, chief economist at Swiss Re said: "A return to economic growth in the mature markets is a good sign for insurance and we see a positive outlook for the next two years. Emerging markets, especially in Africa and Asia, will definitely provide some of the more spectacular growth figures in non-life business as cities grow and people look for financial protection for their property."
The global life sector recovery is set to continue, but reinsurance premiums in advanced markets expected to shrink, the insurer said.
Global primary life premiums have continued to recover this year, with emerging market real premium growth above 6% and advanced market growth at 2.3%.
Life insurance premium growth has "rebounded" sharply in emerging Asia, growing by about 6% in real terms this year.
Karl added: "The figures for emerging markets this year have been robust and this is expected to continue. In Latin America, we saw 18% growth in 2012 and in 2013 we are looking at 10% growth, which is still very good."
Economic activity in the stable countries of the Middle East and North Africa region is supporting above-5% growth in life premiums, but from a very low base, the report concluded.
