12 December 2018 09:30
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What country allows life insurers to generate the most profits ? The United States remains in the lead, but China is coming. This is according to McKinsey & Company in its report entitled, Life Insurers and Annuities State of the Industry in 2018 : the growth imperative. The difference between the two countries is $ 6 billion.
“The profits from absolute China are now almost as important as those of the United States in the life insurance industry, powered by the explosive growth in recent years “, one can read in the report.
2/3 of the middle class will originate from Asia in 2030
When China overtake the United States ? McKinsey does not make a prognosis in this regard. The consulting firm, however, reveals that by 2030, two-thirds of the people who compose the middle class will come from Asia. In contrast, Europe and North America will have 20 % of the world population of the middle class. In 2010, half of the population of the middle class resided on these two continents.
“This mass displacement is a major driver of differences in growth for life insurers depending on the regions where they are present “, add the analysts of McKinsey.
The number of millionaires is increasing in the United States
The middle class may be increasing more in number in the United States, but it is just the opposite of the millionaires who live there. There are more, reports McKinsey.
The consulting firm reports that households that have more than $ 25 million in assets have increased by 10 % between 2015 and 2017 in the south of the border. By 2018, the number of millionaires has increased by 700,000 households. “In addition, Fidelity has announced that the number of millionaires among its account holders in retirement has tripled over the last year. This creates opportunities for insurers to bring value propositions in these segments “, says McKinsey.
To read by next Wednesday : with the aging of the population, life insurers will have a lot to do to compete with investment firms.