Swiss Re predicts AI‑fuelled insurance growth as premium expansion slows

Swiss Re Institute forecasts that global insurance premium growth will moderate in 2026, with real non‑life premium growth falling to about 0.6% and life premiums rising 2.3% in real terms. The slowdown is linked to higher inflation, geopolitical fragmentation and a rise in natural‑catastrophe losses.

The report highlights a $750 billion investment in artificial‑intelligence infrastructure slated for 2026, up from $500 billion in 2025. This surge in AI data‑center spending is expected to create new demand for specialty insurance covering construction, operational, cyber‑risk and business‑interruption exposures. Swiss Re warns that many U.S. AI facilities are located in high‑tornado zones, urging insurers to adopt parametric products and catastrophe bonds.

Separately, Swiss Re’s Life & Health CEO warns that demographic ageing will rewrite the intergenerational contract. By 2050 the ratio of working‑age people supporting each retiree is projected to fall from about five‑to‑one to three‑to‑one, pressuring pension, health‑care and long‑term‑care systems. The insurer calls for new senior‑focused insurance products to address health shocks and financial security for older adults.