Global insurance premiums increased marginally last year, with only strong growth in emerging economies saving the general insurance market from contraction, says global reinsurer Swiss Re.

The reinsurer’s latest Sigma study depicts a diverging global picture, with developing markets galloping along at 10.2% growth, for total premiums of $US196 billion ($205 billion), while insurance premiums in industrialised countries fell 0.3% to $US1.5 trillion ($1.6 trillion).

Overall, non-life premiums grew 0.7% to $US1.7 trillion ($1.8 trillion), while the life sector experienced robust growth of 5.4% to $US2.4 trillion ($2.5 trillion). Total premiums were up 3.3% to $US4.1 trillion ($4.3 trillion).

Swiss Re predicts the two-tier global market will continue to diverge, as premiums in industrialised countries continue the downward trend. Inflation is likely to increase long-tail liability claims and hit insurers’ profits.