Emerging markets are expected to be the main driver of growth in the global economy and insurance industry over the next 10 years, according to a recent Swiss Re sigma report. In fact, the seven largest emerging markets—China, India, Brazil, Russia, Mexico, Indonesia and Turkey— will contribute up to 42% of global growth, with China alone accounting for 27%.
The report also forecasts that the emerging market share of global insurance premiums will increase by about 50% over the next decade, growing four times faster than advanced markets.
In emerging Asian countries, the premium growth rate is expected to be three times the world average over the next two years, with China becoming the largest insurance market by the mid-2030s. Such growth is being spurred by new regulations and standards, advances in technology, increasing urbanization and infrastructure investment, and a greater focus on financial inclusion efforts that are designed to make financial services more accessible and affordable for lower-income customers.