The report analyzes the relationship between the evolution of credit and insurance activity, highlighting how credit drives consumption and investment, key factors in the growth of Life and Non-Life insurance. Nine representative markets in the Americas, Europe and Asia are studied, assessing the three main components of credit – to governments, households, and non-financial corporations – from a macroeconomic perspective. The study also examines capital markets development, comparing financing in developed and emerging economies. In addition, the report discusses how credit cycles influence the housing, automotive and consumer finance sectors, warning that while credit expansion benefits the insurance sector, uncontrolled growth can lead to economic crises. Labor market informality as a constraint to banking penetration, which can lead to increasing credit risks, is also examined. The report also explores demographic trends, such as population ageing, and their impact on both the demand for insurance and credit growth.

Insurance