General insurance premiums around the world rose by 2.1% last year, according to a new report by Swiss Re.

Life insurance premiums were up by 3.2% and world insurance premium volume rose by 2.7% during 2010.

The demand for general insurance in Asia continued to grow as their economies rebounded from the global financial crisis, the report says. Premium volume also rose in Europe and the US.

But general insurance underwriting results in the US deteriorated during the year and turned negative in the largest European markets due to motor vehicle insurance.

“The average combined ratio of these leading markets worsened to 103%, compared to 101% in 2009,” according to the report’s author, Daniel Staib.

“Given recent catastrophe loss events, it is clear that global underwriting results will deteriorate further in 2011.”

Mr Staib says in some markets, such as Italy and the UK, rates began to rise, mostly in the personal motor business. This signalled that the “underwriting cycle is at long last beginning to turn”.

Swiss Re says global life insurance premiums grew 3.2% to $US2520 billion ($2341 billion) last year.

Again strong growth was reported in Asian markets as well as in some larger European countries.

Premiums declined in the US and the UK, though at a more modest pace than 2009, Mr Staib says.

Other areas of strong life insurance growth were in emerging markets, where premiums rose by 13%.

Asia had the strongest growth at 18% with China being the dominant market with strong demand for both traditional and investment-linked products. Latin America, led by Brazil, and the Caribbean, were not far behind at 12%.

“The dominating picture is that the (insurance) industry is on the way back to the long-term growth trend,” Mr Staib says. “In some continental European countries, growth in the past year has been very strong because sales of single premium products with comparatively attractive guarantees increased strongly.”

Swiss Re is predicting global premium growth in both general and life insurance during 2011.

“In general insurance, the trend is towards higher premium growth in 2011,” the report says. “This trend will strengthen as premium rates begin to get adjusted upwards.”