Emerging Asia will continue to power the global insurance market next year, Swiss Re says.

The reinsurer’s Sigma Global Economic and Insurance Outlook predicts overall premium growth will be 3% a year over the next two years, supported by economic growth.

Premium in the emerging Asian market is expected to increase by almost 9%, driven by 6% economic growth in China and India over the next two years.

The global emerging market economy, including Argentina, Brazil, South Africa and Turkey, will grow by 4.9% over the same time.

China’s share of global premium is expected to rise to 16% by 2028.

Wealth has grown significantly and a 1% rise in Chinese GDP has a much greater impact on premium volume than it would a decade ago, the report says.

However, Swiss Re says real GDP growth will slow for most of the world in the next two years. US growth is expected to slow from 2.9% now to 1.7% in 2020, while European growth will drop to 1.4% from 1.9%.

The global property and life protection gap is estimated at $US500 billion ($689.58 billion), underscoring the opportunity for insurers to expand, Swiss Re says.

Innovation will push the boundaries of what can be insured, increasing premium growth and narrowing the gap, it says, noting the evolution of double-trigger indemnity structures and data and modelling advances.