The value of global insurance premium stood at an all-time high of $US5.6 trillion ($7.91 trillion) at the end of last year after annual growth of 3.2%, Aon’s latest Insurance Risk Study says.

The Study, which evaluates areas of growth and profitability globally, says property and casualty (P&C) premiums rose 4% worldwide, for an underwriting profit globally with a combined ratio of 97.4%.

Australia outperformed that with 94.3% and New Zealand scored 86.7%.

Australia’s P&C gross written premium (GWP) came to $US30.08 million last year and its five-year cumulative net combined ratio was 94.1%, outperforming the global figure of 97.8%.

Annualised premium growth was 7.1% in Australia last year, almost double Australia’s five-year average rate of 3.8%.

Globally, motor insurance was shown to be the fastest growing line of business, with 6% annual growth over the past five years, driven by strong growth in China, South Korea, and the U.S.

Life & health premium rose 2% and reinsurance premiums 13% worldwide last year, Aon says.

For the fourth consecutive year Malaysia and Indonesia ranked within the top 10 positions in Aon’s Country Opportunity Index. These countries have shown low combined ratios, healthy premium and GDP growth, and a stable political environment.

“To achieve strong insurance growth, it is best for insurers to look beyond the developed economies,” the report says.

See the full study here.