India’s Leading BFSI Companies 2020

XLIV Overview: Global insurance sector As world real GDP grew by 3.2% in 2018 global direct premium income too grew by 1.5% and surpassed USD 5 trillion for the first time (USD 5193 billion) and constituted 6.1% of global GDP. Global insurance premiums remained largely stagnant and life premiums fell by 2%mainly due to contraction in China, which was a result of tightening of regulatory supervision on the distribution of savings policies. However, Global non-life premiums increased by 3% to USD 2373 billion led by improvement in Asia-Pacific region. Region-wise life & non-life insurance premium 2.23 0.59 1.09 2.82 1.85 0.52 0.59 2.37 0 1 2 3 4 5 6 Advanced markets Emerging markets Asia Pacific World trillion USD Life Non-life • Profitability continues to be under pressure in both the life and non-life sectors. In life, low interest rates continue to depress profitability, especially in Europe and advanced Asia-Pacific. In non-life, return on equity (ROE) remained roughly stable in 2018. • Technical results have turned slightly positive as the improvement in underwriting conditions that began at the end of 2017 carried on into 2018. However, stabilization of the softmarket trend has not been sufficient to notably narrow the profitability gap that still besets the nonlife insurance sector. Insurance penetration and density in emerging markets Insurance Dun & Bradstreet