MUNICH RE: ASIAPACIFIC TO DOMINATE WORLD GROWTH
ACCORDING to a report by Munich Re, premium income from the Asia-Pacific region will double by 2020 contributing an extra € 1 trillion (MYR3.97 trillion). The slice from “emerging Asia” markets such as China and India will be about € 670 billion ($2,657.35 billion), nearly 70% of the total. The report adds that five of the world’s top 10 primary insurance growth markets will be in the Asia-Pacific region by 2020 with demand driven by increased risk awareness, an expanding middle class and rising consumer savings. Emerging Asia will continue to be severely underinsured, especially against natural catastrophes. The report also stated that about 40% of all natural catastrophes since 1980 have occurred in the Asia-Pacific region. The region suffered 45% of all economic losses but only 18% of insured losses. Munich Re remarked that the insurance industry must improve risk assessment in the region, taking account of the way fast development creates new peak exposures and hot spots and affects worldwide supply chains, as seen following the recent Thai floods.
€ 1.00 = MYR3.97