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Asia will drive growth for insurers according to Munich Re

  • Publish Date: Posted almost 7 years ago

Asia’s emerging economies will support global insurers into next year, offsetting an expected slowdown in China, according to Munich Re. Global insurance premiums will increase by 4.5% in nominal terms in 2017 and in 2018, an increase on the 3.0% seen in 2016. In real, inflation-adjusted terms, insurers' revenue growth would be around 2.9% this year and 3.1% in 2018. Munich Re expects premiums to hit US$4.9 trillion in absolute terms in 2018, up from US$4.57 trillion last year. Michael Menhart, Munich Re’s chief economist said in a statement, "The economies of many emerging markets, such as Brazil, but even Russia, are experiencing a significant recovery. This is leading to increased growth in property-casualty insurance." Menhart expects the growth to balance out negative factors, such as slowing economic expansion in China. Long term, Asian economies will contribute 21.4% to global insurance premiums by 2025 an increase from 13.3% today.