Insurance demand has a strong positive relationship with economic growth. The economic slowdown in emerging markets in recent years has not translated into a corresponding drop off in premium growth, and underlying consumption momentum for insurance has not been fundamentally eroded.
This sigma forecasts that the emerging market share of global premiums will increase by about 50% over the next 10 years, with the long-term premium growth rate for emerging markets 5 percentage points higher than that for the advanced markets. The growth rate in emerging Asia is forecast to be three times the world average over the next two years and China remains on course to be the biggest insurance market by the mid-2030s. Growth in the Latin America and Central and Eastern Europe insurance markets is also projected to accelerate. This will be spurred by factors such as growth-enabling regulation, the adoption of technology, ongoing urbanisation, and a push for financial inclusion.
“Insurance has long been a key enabler of economic growth. It is imperative that we continue to support governments, companies, and private citizens to fully unlock growth potential in emerging markets.” Jayne Plunkett, Chief Executive Officer of Swiss Re Reinsurance Asia says. “To do this, we need to strengthen our work creating sustainable, tech-enabled solutions that address increasingly sophisticated and urbanised emerging consumers.”