Insurers urged to help bridge Asean infra gap

February 12 2018 by InsuranceAsia News Staff

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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