Asia will drive growth for insurers according to Munich Re

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.