NEW YORK CITY, New York: The worldwide insurance industry is anticipating that it will recover more quickly and be stronger due to the pandemic than after the 2008 financial crisis, insurer Swiss Re AG's chief American economist said on Friday.
In speaking with Reuters, economist Thomas Holzheu said that unlike past crises, the pandemic did not reduce overall capitalization or the financial strength of the insurance industry, allowing companies to write new coverage and increase revenues.
Holzheu noted that writing new policies was more difficult in 2009 and 2010 when insurers suffered from capital losses, slow economic growth and reduced incomes of companies and individuals.
Today, he said, businesses and individuals have significant amounts of money from government stimulus and support programs, and people are more aware of the need to purchase protection against risks, he added.
"We see a much stronger, more resilient demand for insurance - last year, this year, and we expect for the next few years - compared with the financial crisis, when the industry was a part of the financial markets issues," he said.
Meanwhile, Swiss Re announced that it expects annual growth for all premiums to reach 3.3 percent this year and 3.9 percent in 2022, after falling only 1.3 percent last year.