Liability coverage sees growth spurt
Liability coverages are growing faster than gross domestic product or property insurance.
“The growth of the services sector, which is more exposed to liability risks than the manufacturing sector is one reason for the increasing importance of liability protection,” said Thomas Halzheu, co-author of a new Swiss-re sigma report on the insurance marketplace.
Societies becoming more litigious and legislation changes are also reportedly pushing the growth, as well as companies placing more value on life and having higher wealth.
Property coverages are also increasing, particularly in the US and Brazil. However, China still accounts for only 13% of global premium for property lines.
The nature of property risks is broadening from traditional property damage to business interruption and less understood contingent business interruption risk, including supplier disruptions, said Roman Lechner, co-author of Swiss Re’s report.
But Lechner said there is still only low coverage of contingent business interruption risks.