India, Saudi Arabia, Indonesia to lead 2017-2025 P&C growth
India is expected to be among the countries experiencing the highest growth in P&C insurance in the coming years, followed by Saudi Arabia and Indonesia, according to the latest Quarterly InsurTech Briefing Q3 2017 by Willis Towers Watson.
Emerging Asia will see P&C premium and inflation adjusted premium compound annual growth rate (CAGR) of 7.1 percent between 2017 and 2025.
Insurance penetration in Emerging Asia continues to lag developed markets by a significant margin, according to the report. This suggests outsized premium growth could continue as the gap between the region’s proportional share of the global population (43 percent) and economy (15 percent GDP) relative to its re/insurance spend (13 percent) narrows. Accelerated pace of economic growth in Emerging Asia relative to the global economy, paired with increased penetration towards the levels observed in more developed re/insurance markets, could lead the region to expand its share of global re/insurance premiums from 13 percent in 2016 to 21 percent by 2025, the report says.
As one of the largest underdeveloped re/insurance markets globally, Emerging Asia may have the most to gain from an InsurTech revolution. It also may have the fewest barriers to the successful implementation of emerging technologies into the insurance industry, due to the relatively limited suite of current products in the market and the region’s high rate of e-commerce penetration, according to the report.
The region with the second fastest expected growth in P&C is expected to be Middle East & North Africa with CAGR of 5.8 percent between 2017 and 2025, according to the report. Sub Saharan Africa is expected to see CAGR growth of 4.3 percent over the period, while Eastern Europe follows with 3.8 percent.
Looking at individual countries, India is set to see the fastest growth in P&C insurance with a projected CAGR of 8.7 percent, followed by Saudi Arabia with 8.1 percent and Indonesia with 7.4 percent.
China is only fourth on the list with 7.0 percent CAGR, followed by Iran with 6.2 percent and United Arab Emirates with 5.6 percent.
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