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The Actuary The magazine of the Institute & Faculty of Actuaries
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China leads insurance growth in emerging markets

The growth of the insurance sector in emerging markets accelerated over the last year, especially in Asia, according to the latest sigma study by Swiss Re.

The ‘World Insurance in 2010’ study showed that life premiums in emerging markets rose by 13%.

South & East Asia had the strongest growth at 18%, led by China, with strong demand for both traditional and investment-linked products.

Latin America and the Caribbean followed strongly at 12%, led by Brazil.

China is likely to become the second largest insurance market within a decade (in 2010 it was the sixth largest), the study suggests.

The study also found that:

>> World insurance premium volume increased 2.7% on an inflation-adjusted basis

>> Life premiums rose by 3.2%, non-life by 2.1%

>> The industry’s capital and solvency improved, while low interest rates weighed on investment income

>> Premium volume grew in three quarters of the 78 markets covered in the study

>> Capital and solvency in the insurance industry improved robustly but low interest rates still had a negative impact on profitability

>> Global non-life insurance premiums rose by 2.1% in 2010

>> The global market share of emerging countries is expected to continue to increase strongly from today’s 14% over the next ten years.

The full report can be accessed here.