The recession in the United States hit the insurance industry pretty hard when it erupted in 2008. As the state of the economy heavily impacted the incomes and spending allowances of most households, many individuals were not taking out new policies on life insurance and other forms of coverage, which ended up hurting the stability of the industry on a global scale.
But, according to Bloomberg Businessweek (BBW), with the U.S. economy on the mend, the sales and premiums of life insurance policies should return to a growth trend this year in most advanced economies around the world.
In 2013, life insurance policy premiums dipped 0.2 percent in 2013 to $2.2 trillion. According to Carolyn Bandel of BBW, this decline was heavily impacted by the 7.7 percent decrease that was experienced in the U.S. alone. This occurred following the previous year’s cut from 2.2 percent to 1.4 percent growth of the insurance industry as a whole.
The article from BBW cited Swiss Re, the world’s second-biggest reinsurer, as saying that, “Life premium growth is expected to resume in the advanced economies and improve in the emerging markets. In North America premium growth will return as the labor market and economy strengthen.”
This is great news for the insurance industry, but it also means that premium costs should stabilize, making the purchase of life insurance policies much more manageable and affordable for many individuals.
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