Swiss Re, a leading global reinsurer, has announced that it expects global insurance premium growth to slow down in 2026. The organisation forecasts a decline in premium growth, citing economic uncertainty and rising inflation as key factors. In the UK, this slowdown is likely to have a direct impact on businesses and households that rely on insurance premiums.
Insurance premiums are a crucial component of many businesses' revenue streams. A decline in premium growth could lead to reduced revenue for UK insurers, which in turn could affect their ability to invest in new initiatives and pay out dividends to shareholders. For households, a slowdown in premium growth could result in higher costs or reduced coverage options.
The Bank of England has already taken steps to address the impact of inflation on the UK economy, including raising interest rates to control price growth. However, the slowdown in insurance premium growth is a separate issue that may require a more targeted response from policymakers.
According to the Bank of England, the FTSE 100 index has been affected by the economic uncertainty surrounding Brexit and the Ukraine-Russia conflict. The index fell by 10% in 2025, with many companies citing the uncertainty as a key factor in their reduced revenue and profit forecasts.
In terms of specific figures, Swiss Re forecasts a decline in global insurance premium growth from 5% in 2025 to 2% in 2026. This decline is expected to be driven by a combination of economic factors, including rising inflation and reduced economic output.