Global Economic Shifts: Ageing, AI, and Industrial Policy

The global economy is poised for a significant transformation, influenced by fiscal expansion, industrial policy, ageing populations, and AI integration. The Swiss Re Institute anticipates a stabilization in global GDP growth, with projections of 2.5% in 2026 and 2.6% in 2027, alongside sustained inflation above 2% in advanced economies. This environment presents both challenges and opportunities for the insurance sector.

Industrial policy is becoming central to economic strategies, aiming to boost domestic investment, particularly in semiconductors and AI infrastructure. However, it also introduces risks of inefficiency and supply chain concentration. Ageing demography is reshaping labor markets and insurance needs, prompting insurers to innovate and extend coverage for longer lifespans.

AI continues to alter operations in insurance, with a portion of budgets allocated to developing AI capabilities. Yet, full automation is not expected soon. The sector, supported by strong solvency ratios and liquidity, anticipates a 2.3% annual growth in global insurance premiums through 2027, driven by technological and demographic changes.