
- Non-life underwriting margins in major western markets and Japan need to improve by around 5 to 9 percentage points in order to deliver sustainable returns
- Supportive macroeconomic developments alone are unlikely to close this existing profitability gap
- Premium rate increases are needed to restore profitability to sustainable levels
- Insurance stocks have delivered profitability on par with other sectors over the long run, and offer diversification benefits
- Investments in technology will lead to efficiency gains in the longer run
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