Economic and Industry Outlook 2021

This report revises global economic growth forecasts downward as a result of more persistent inflation affecting income and consumption; the dual nature of the recovery, with emerging markets still weighed down by their difficult pandemic situation and vaccination problems; and also the effects of reduced Chinese demand stemming from lower activity. In this context, the balance of risks is less tilted to the downside thanks to the remission of the pandemic, but there are still many and very severe threats to the recovery. In this environment, the outlook for insurance markets worldwide is improving, although many economies will have to wait until 2022 or even longer to recover their pre-crisis level, so the recovery of their insurance markets may be uneven. In addition, inflationary pressures may reduce profitability and put pressure on insurance prices if the situation becomes persistent.