ECONOMICS & INSURANCE

In this latest edition of Economy and Insurance magazine, we present four articles that take an in-depth look at the major challenges and transformations shaping the global insurance industry. The issue delves into the economic and monetary outlook, the impact of climate change, lending patterns, and evolving trends in the insurance sector, offering a comprehensive view of today’s global financial and insurance landscape.

The opening article, Global Economic Outlook and Monetary Policy, summarizes key insights from MAPFRE Economics’ quarterly report, highlighting a downward revision in terms of global growth and inflation that remains above target, amid high uncertainty and trade tensions. The U.S. Federal Reserve is maintaining a cautious stance, holding off on interest rate cuts, while the Eurozone and Latin America are navigating mixed scenarios, with significant implications for the financial and insurance markets.

The second article, Industry Outlook for the Insurance Market, examines the recent performance of the global insurance sector and its outlook. A moderate yet stabler recovery can be seen in the Life and Non-Life sectors, although with regional nuances. The overview analyzes how North America and China are leading growth in Life, while Non-Life shows greater resilience to economic cycles, reinforcing its role as a structural stabilizer of the market.

The third article, Credit and Insurance Activity, explores the relationship between lending patterns and the development of insurance. It looks at how lending cycles directly impact demand for insurance, both in Life and Non-Life, and how demographic aging could limit long-term credit growth.

The fourth article, Climate Change: Extraordinary Risks and Public Policy (Spanish), explores how global warming is intensifying extreme events and widening the insurance protection gap. The report assesses existing coverage and compensation mechanisms, from agricultural insurance to catastrophe bonds, and proposes a coordinated approach between insurers and governments to bridge the insurance gap. It also examines climate-related risks in investment portfolios and takes a look at regulatory and sustainable initiatives in key countries.

We hope this edition offers an informed, rigorous, and valuable perspective for industry professionals and anyone seeking to better understand the economic and structural shifts reshaping the insurance landscape.