Swiss Re sees insurance market cooling in 2026 - Business Insurance

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Swiss Re sees insurance market cooling in 2026 - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Swiss Re sees insurance market cooling in 2026 by Gavin Souter P/C Insurers , P/C Pricing , Property , Reinsurance Asia-Pacific , Middle East/Africa Marsh , Swiss Re Jul 8, 2026 Global insurance premium growth will slow sharply this year, as softer pricing in commercial property and other lines offsets continued growth in life insurance, according to a Swiss Re report released Tuesday. The reinsurer forecasts total premium growth, adjusted for inflation, of 1.3% in 2026, down from 3.9% in 2025, before edging up to 1.6% in 2027. Property/casualty insurance is expected to slow to 0.6% growth from 3.9% last year, while life insurance premiums are projected to increase by 2.3%. The property/casualty market is entering a softer phase as abundant capital, strong insurer profitability and easing reinsurance costs intensify competition, Swiss Re said. Marsh’s global commercial insurance pricing index fell 5% in the first quarter, marking the seventh consecutive quarterly decline, the report noted. Property insurance prices dropped 9%, while casualty rates rose 3%, driven by higher U.S. loss costs. Higher claims inflation, driven by rising construction costs and higher energy prices, could limit market softening, the report said. It forecasts global consumer price inflation will average 4% in 2026 before easing to 3.3% in 2027. Despite slower premium growth, higher interest rates are expected to support insurers’ profitability through stronger investment income. Swiss Re forecasts that property/casualty return on equity will decline to 11.4% in 2026, down from 14% in 2025, but remain above the industry’s estimated cost of capital. Swiss Re also lowered its global real gross domestic product growth forecast to 2.5% in 2026, citing the effects of the Middle East conflict, while noting that investment in artificial intelligence infrastructure should support growth, particularly in the United States and parts of Asia. 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