Thursday, April 26, 2018

Insurers urged to help bridge Asean infra gap

Insurers have been encouraged to spur more economic growth by funding infrastructure projects via the private-public partnership scheme.

According to the ASEAN Insurance Council (AIC), insurers around the world are estimated to hold just 2% of assets under management in infrastructure investments.

Between 2004 and 2014, though, insurance premiums in ASEAN grew at an average annual rate of 13% or three times the global average.

This means that insurers are offered a lucrative opportunity that can be tapped by investing in viable infrastructure projects in the region.

The AIC noted that by 2030, ASEAN’s infrastructure development will need as much as US$3.1 trillion in investment.

AIC secretary general Evelina Pietruschka said the Asian Development Bank (ADB) believes that the Asian insurance industry can play a key role in meeting that need.

It is estimated that ASEAN requires up to US$60 billion additional investment annually to bridge its infrastructure investment gap.

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