11 March 2019 11:30
China and the emerging markets will show growth such that the first is destined to become the largest insurance market here in the mid-2030s, states the Swiss Re Institute in its most recent report, sigma.
The authors of the analysis also indicate that the share of emerging markets in the world premiums will increase by approximately 50 % over the next ten years. The rate of growth of premiums in the long term will be higher of 5 percentage points that of advanced markets, according to Swiss Re Institute. In emerging Asia, the rate of growth is expected to reach the triple of the world average in the coming two years “.
“Emerging markets will continue to get results higher than advanced markets in terms of growth over the next ten years,” says Jean Haegeli, group chief economist, Swiss Re. The shift in economic power from west to east will continue. On this occasion, the quality, and not the speed of growth, is becoming the key differentiator among emerging markets. At the same time, the insurance markets will continue to grow at a steady pace, and China is expected to become the first in the insurance market by the mid 2030s. “
Relationship between insurance and economic growth
“There is a strong positive relationship between the insurance application and the economic growth. The economic slowdown in the emerging markets in recent years has not translated into a corresponding drop in premium growth, and the dynamics of consumption insurance underlying has not been eroded to basically “, underline the authors of the report.
The Swiss Re Institute notes that the seven emerging markets of the largest could contribute to 40 % of the growth of the global economy in the next decade, and that these markets have more moderate growth, but also more stable.
“Insurance has always been one of the main catalysts of economic growth. It is imperative that we continue to help governments, businesses and citizens to unleash the full potential of growth in emerging markets, ” says Jayne Plunkett, chief executive officer of Swiss Re Reinsurance Asia.
The report sigma suggests that aid for emerging markets, is characterized in the form of regulations to promote growth, adoption of new technologies, progress of urbanization and the promotion of financial inclusion.