The global life and general insurance sectors generated premium income of $3552 billion last year. While life insurance ($2077 billion) earned more than general insurance ($1475 billion), the general insurance sector has grown at “a record-breaking rate” according to Swiss Re’s annual study of the global general insurance industry.

The Sigma report, which takes a year to compile but is widely regarded as the most accurate available, uses data from 91 countries. It says the non-life sector’s high premium growth offset abysmal financial market returns in 2002. “Some signs of recovery are evident in the most important markets.”

Adjusted for inflation, the premiums of the two sectors translated into 5.5% growth over the previous year (life insurance 3.01% and general insurance 9.2%.)

The industrialised countries registered an increase of almost 2% in life insurance premiums. This trend was attributable to robust premium growth in the US, while income fell in Japan, Britain and France.

“Faced by low investment returns, insurers across the globe were forced to design products that would return their business to profitability. These improvements made themselves only partially felt in underwriting results and in overall results, as loss reserves had to be topped up further and investment results were again poor in 2002.”