Asia fuels global insurance growth

Asia will remain the engine for the global insurance market over the next couple of years as double- digit insurance sector growth is anticipated in Asia’s emerging markets until 2017, according to the Munich Re Co. (Munich Re).

Munich Re Group is a reinsurance company based in Munich, Germany. It is one of the world’s leading reinsurers. ERGO, a Munich Re subsidiary, is the Group’s primary insurance arm.

“In the medium term, emerging markets in Asia will continue to drive insurance sector growth. This year and next, premium volume in life insurance in this region is likely to see double-digit growth, with that in property-casualty (non-life insurance) insurance only slightly behind,” it said in its latest Insurance Market Outlook report.

The German reinsurance group says that overall, the global primary insurance sector is expected to grow by around four percent on average in 2016 and 2017.

Munich Re said that one reason for the decent level of growth despite the uncertain macroeconomic environment is the continued high “catchup” potential of life insurance in many emerging markets.

Munich Re chief economist Michael Menhart said the outlook for the insurance sector for the next two years has brightened, despite weaker economic development in some regions.