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Asean is a large potential market for reinsurers

  • Publish Date: Posted over 7 years ago

ASEAN constitutes a large potential market for reinsurance products with over 600 million people, combined nominal GDP of over $2.41 trillion and per-capita income of $3,852. Asean has also set ambitious regional integration targets for 2015 and 2020. The Asean Economic Community (AEC) was established by the end of 2015. One of these aims is to set up a single market and production base by having a free flow of goods, services, investment, skilled labour and capital. Steps to achieve this include ending tariffs and nontariff barriers (NTBs), harmonising customs procedures via an Asean Single Window, harmonised technical regulations, removal of all restrictions on trade in services, continued liberalisation of financial services and strengthening investment protection via most-favoured nation (MFN) national treatment. Although some Asean nations have already committed to partially liberalise their insurance sectors by 2015, the exact forms of liberalisation and deregulation are still up for debate. Asean member-states plan to undertake a number of cooperative actions, which has the backing of the European business community, in the hope of achieving these goals by 2020.