Premiums written in the global insurance industry grew only 1.4% to $US4.64 trillion ($4.95 trillion) last year, according to the latest Swiss Re Sigma report.

The increase was about half the previous year’s rise of 2.5%, with the slowdown mostly due to weakness in the life sector, which grew just 0.7% last year compared with 2.3% in 2012.

Sales were weakest in North America and advanced Asian markets.

Global non-life premiums grew 2.3% last year, compared with 2.7% in 2012.

Emerging markets provided the bright spot for the general insurance sector, with premium growth remaining strong at 8.3% last year following a 9.3% rise in 2012.

Expansion in emerging Asia was supported by strong growth in southeast Asia and China.

Report co-author Mahesh Puttaiah says as people grow wealthier and acquire more physical assets they spend more on general insurance products.

In advanced markets non-life premium growth was just 1.1% last year, mainly due to a depressed market in western Europe.

In advanced Asia premium growth slowed to 1.7% from 4.7% in 2012, led by a 12% slump in growth in South Korea, where the end of a tax break brought a sharp drop in single-premium product sales.

“Overall profitability has improved in the life and non-life sectors,” the report says.

“However, investment returns, an important component of insurers’ earnings, remain low given the very low level of interest rates since the 2008 financial crisis.”

The report does not expect interest rates to “trend up” until 2017.