Asian insurance to grow at “breakneck speed”, says leading insurer

Rapidly aging population and recovery from global financial crisis seen to spur insurance sector’s growth

Asian insurance to grow at “breakneck speed”, says leading insurer

Insurance News

By Gabriel Olano

Global insurance powerhouse Allianz said in a new report that Asia is foreseen to outpace other markets, with special mention to Singapore, whose insurance market could almost double in the next decade.

Asia (with the exception of Japan) is likely to experience double-digit growth rates over the next ten years, according to Allianz’s report on the global insurance market’s growth prospects.

After the global economic and financial crisis of the late 2000s, insurers can now expect better growth, with insurance premiums growth reaching 5.9% over the next ten years, up from the 3.1% of the 2008-2016 period.

“The long lean spell of the crisis years is finally behind us, in particular, most emerging markets will continue to grow at breakneck speed, first and foremost China,” Michael Heise, group chief economist of Allianz, said in the report.

The Singaporean insurance market is forecasted to expand by 5.7% annually for the next decade, or almost doubling within that time span. This is quite impressive, as Singapore already has the fourth-highest insurance spending in the world, beaten only by Hong Kong, Switzerland, and Denmark.

By 2050, more than half of the global population aged 80 and beyond will be in Asia. According to Michaela Grimm, co-author of the Allianz study, when rapid aging meets government social security systems that aren’t prepared for old age, people will be forced to put aside money for themselves, investing it in life and retirement insurance.

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