Emerging Asia to drive premium growth

July 6 2017 by InsuranceAsia News Staff

Asian emerging markets will help global insurance premium growth accelerate to 5.9% during the coming decade, from 3.1% between 2008 and 2016, says Allianz in its latest report on the growth prospects of global insurance markets.

The Chinese insurance market is expected to grow by almost 14% a year over the next decade as penetration climbs from 3.6% today to 6.7% in 10 years’ time.

“The long lean spell of the crisis years is finally behind us”, said Michael Heise, group chief economist of Allianz. “In particular, most emerging markets will continue to grow at breakneck speed, first and foremost China. Over the next 10 years, one in three euros of additional global premiums will be earned in the Middle Kingdom.”

On a premiums-per-capita basis, Hong Kong residents’ spend on insurance was the highest in the world. As a percentage of GDP, their insurance density, at 17%, was also the highest.

During the next 10 years, the Hong Kong insurance market is expected to grow by 8.2% a year, driven by income growth and broader old age provisions.

“Growth in Asian life markets will be extraordinary over the coming years”, commented Michaela Grimm, co-author of the study. “In 2050, more than half of the global population aged 80 and older will live in Asia. But this rapid aging hits social security systems for old age that are not fully developed yet. So, most people have no choice but to put money aside themselves.”