Swiss Re’s business unit CEOs have outlined key themes they expect to shape the re/insurance industry in 2025, with a focus on geopolitical instability, rising natural catastrophe losses, and evolving market dynamics. According to Swiss Re Institute, 2024 marked the fifth consecutive year with insured natural catastrophe losses exceeding US$100 billion. This trend is expected to continue, driven by increasing climate risks.
Liability claims in the US have risen by 57% over the past decade, with “nuclear verdicts” – jury awards exceeding US$10 million – becoming more frequent. Additionally, global premium growth in 2025 and 2026 is forecasted to be led by life insurance, with a projected annual growth rate of 3%, supported by persistently high interest rates.
Urs Baertschi, CEO of property and casualty reinsurance, said that the industry’s purpose remains unchanged: to protect people when they need it most. “Protectionist trade policies are likely to slow global growth, leading to higher inflation and potential supply chain disruptions. At the same time, we expect increasing losses from natural catastrophes and elevated litigation to continue. As uncertainty rises, so does the need for protection,” Baertschi said.
Baertschi highlighted the role of reinsurers in going beyond risk transfer, providing tools and insights to enhance risk management and awareness.
Paul Murray, CEO of life and health reinsurance, described 2025 as a year of steady growth for life and health insurers, albeit at levels slightly below the decade-high growth seen in 2024. With robust fixed-income yields, insurers’ profitability prospects remain stable. “I also see further opportunities for life insurers to optimize their balance sheets and support new business growth using reinsurance, especially as many are now gauging the impact of shifting to IFRS,” Murray said.
Ivan Gonzalez, CEO of Corporate Solutions, highlighted three themes for commercial insurance in 2025. “Firstly, corporations around the world will continue to adapt their risk management to heightened loss trends driven by factors such as climate change and social inflation. Secondly, as pricing is plateauing at attractive levels, insurers need to find innovative ways to support their clients,” he said.
Gonzalez also emphasized the importance of balancing primary insurance, reinsurance, and alternative risk transfer solutions to build resilience for both insurers and corporate clients.