MU­NICH RE: ASI­APA­CIFIC TO DOM­I­NATE WORLD GROWTH

Insurance - - INDUSTRY UPDATES -

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

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