Global insurance premium totalled $US5 trillion ($7.05 trillion) last year, with property and casualty premium accounting for $US1.4 trillion ($1.97 trillion), according to Aon Benfield. 

The reinsurance intermediary’s 10th annual report on the global insurance market reveals extreme corporate liability events continue to have a marked impact, with 86 losses of more than $US1 billion ($1.4 billion) reported since 1989.

Aon Benfield estimates there is a one-in-two chance annually of an individual corporate liability loss exceeding $US10 billion ($14.1 billion), and that nearly half of such losses result from environmental, product, premises and operations liability, and similar causes that are potentially insurable.

Last year 27 of the 50 countries analysed achieved combined operating ratios below 95%, with Indonesia leading the rankings on 83.6%.

According to Aon Benfield’s Country Opportunity Index – which ranks markets based on a combination of profitability, growth potential and political stability – Indonesia, Malaysia and Singapore are the top performers.

Australia also features in the top quartile of 12 nations. Ecuador is ranked fourth and Australia shares the No.5 spot with Chile, Saudi Arabia, Nigeria and United Arab Emirates.

Brazil, South Africa and Norway complete the top quartile.

Australia achieved five-year annualised premium growth of 6.7%, with a cumulative net combined operating ratio of 96.8% over that period.

The report identifies seven key business opportunities for insurers over the next 5-10 years: US mortgage credit; the sharing economy; reputation and brand; microinsurance; corporate liability covers; terrorism cover and cyber risk.

It notes favourable developments in three key strands of the market – demand driven by emerging risks, supply from new capital, and data and analytics – contribute to a positive outlook for the insurance industry.