Emerging markets matter - Change is in the air, but long term opportunities abound for insurers in this complex landscape - EY
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Emerging markets matter Change is in the air, but long‑term opportunities abound for insurers in this complex landscape
Contents Introduction 3 Regional summary 5 Analysis by region Asia 13 Latin America 23 Middle East—Africa 27 Europe 31 Conclusion 35 Snapshot opportunities and risks by country 36
Foreword Rapid technological innovations and vast flows of funds are binding the globe ever closer together, and savvy insurance executives recognize that uncovering opportunities to cultivate new insurance premiums in emerging markets can represent a powerful force to accelerate revenues. Evaluating these opportunities has become more complex, however, after the sudden decline in the prices of energy and other commodities softened the market for many developing economies trying to scale globally. As a consequence, insurance executives must be nimble, regularly evaluating and refining their strategies to identify which international markets are most likely to offer the best return on investment. EY and Oxford Economics developed this report to highlight the potential for insurance growth in 22 countries around the globe. We have created a risk- opportunity matrix to illustrate the most attractive markets for investment and those that pose the greatest risks. This sequel to Waves of change: the shifting insurance landscape in rapid growth markets, released in 2013, is designed to help executives better understand the challenges of this complex market landscape. As our findings reveal, the contribution of emerging markets to insurance premium growth will remain significant over the long term. Insurers need to identify and develop new premium revenue streams, even if some former standouts will confront significant economic challenges that may hinder growth in the near term. Shaun Crawford Rohan Sachdev EY Global Insurance Leader EY Global Insurance Emerging Markets Leader
Brazil, which in our last report appeared on the road to sustainable growth, is now likely to record negative growth over the next three years and is no longer a very attractive investment target.
Introduction
Global insurers know: emerging markets matter. Indeed, over the next
five years, emerging markets are expected to be the main drivers of
premium growth in both life and non-life insurance markets.
As the growth prospects for insurance • Rapid technological transformation,
in many mature markets remain which offers financial access and
modest, global carriers have logically greater empowerment to millions of
turned their attention to the abundant new consumers, especially through
opportunities emerging markets smartphone and tablet devices
present. As recently as 2014, Asia
• New micro-insurance and takaful
and Latin America achieved double-
products, designed to serve markets
digit growth in insurance premiums
that were once considered too
compared to a mere 5% growth in the
burdensome to cover
developed world, reinforcing the view
that emerging markets were poised • The massive room for catch-up in the
to become an increasingly important rate of insurance penetration across
source of global insurance growth. all types of coverage in emerging
markets
2015 proved turbulent, however.
Few predicted that the rapid collapse • A flurry of regulatory changes,
in oil and commodity prices, the which will accelerate opportunities
slowdown in China’s growth rate, and for growth by foreign carriers in There is rapid room for catch-
the rapid appreciation of the US dollar many markets. As regulators move up in emerging markets, as
would combine to generate adverse to strengthen solvency, protect
consequences in a number of important
penetration rates are low.
consumers and encourage the
markets, leading to weaker economic development of new products
output. These forces have diminished simultaneously, foreign carriers can
the short-term outlook for insurance offer a mix of technologies and talent
premium growth in a number of key that accelerates premium growth even
emerging markets. faster than overall economic output.
That does not mean the prospects in The challenge today is for insurers
emerging markets have evaporated. to determine how best to target their
Powerful secular trends should generate investments.
significant new growth opportunities
Mindful of the opportunities and also
for insurance over the longer term in
of the potential risks, EY is revisiting
emerging economies, even if the short-
Waves of change: the shifting insurance
term outlook may appear challenging.
landscape in rapid-growth markets,
These powerful trends, which will gather first issued in 2013, to better capture
momentum regardless of the short-term the potential for insurance growth in
outlook, include the following: 22 individual markets. Working with
• A growing urban middle class that is Oxford Economics, we have once again
beginning to achieve critical mass, compiled a matrix that helps global
especially in the fast-rising megacities players understand which markets are
across Africa and Asia poised for the most significant premium
growth and which can be considered the
least risky.
Emerging markets matter | 3
China remains the dominant engine of insurance market growth in emerging economies over the coming five years, even though the degree of its openness to foreign firms remains in question.
Regional summary
Asia will account for the lion’s share of insurance premium growth
in emerging markets through 2020, contributing nearly 90% of the
total. China alone, despite a likely near-term deceleration in GDP
growth, remains the biggest opportunity of any emerging market —
and with relatively low risk (see Figure 10). Indonesia is Asia’s next Figure 1: Distribution of
most promising opportunity, but it comes with higher risk. insurance premiums by region
Africa and the Middle East, while far Outlook for growth: Contributions to total emerging
behind Asia in terms of projected Asia still dominates markets insurance premium
premium growth over the next five growth, 2015-2020 (% of total)
12+60+12642T
In terms of overall growth in insurance Advanced Asia emergers: Singapore,
years, nevertheless hold significant
premiums, Asia will continue to grab Korea, Hong Kong
potential. Indeed, Nigeria scores second
the headlines.
only to China for opportunity (see Figure
9), and new requirements to insure Consistent with our forecast of three
people and businesses in countries years ago, China remains the dominant
like Saudi Arabia and the United Arab engine of insurance market growth in
Emirates (UAE) could light a fire under emerging economies over the coming
those markets. However, the oil price five years, even though the degree of
collapse, volatile commodities markets its openness to foreign firms remains
and foreign-exchange troubles in Africa in question.
mean the region comes with high risks. Even with an expected slowdown in
Similarly, although the political disaster overall output to somewhere around
in Brazil has cast a pall over all of Latin 6%, China is projected to account for Advanced Asia emergers 11.7
America, insurers can look forward almost 60% of expected emerging- China 59.2
to healthy premium growth in several market premium growth by 2020, or India 11.5
regional markets, notably Chile, where some US$280 billion of the additional
Rest of emerging Asia 5.8
foreign carriers enjoy a dominant US$480 billion by which premiums are
projected to expand in the period. India Africa 4.0
market share. Risks are higher in
Mexico, Colombia and Argentina (see and South Korea should each see their Latin America 2.4
Figure 14). In Argentina’s case, fiscal annual premium levels rise by around Middle East and Turkey 2.7
improvement and greater regulatory US$50 billion by 2020. Russia 2.6
coherence could set the stage for long- Figure 1 summarizes our view of
term insurance sector growth. premium growth in rapid-growth Source: Oxford Economics, Haver Analytics
Russia and Turkey, Europe’s two markets over the next five years,
emerging markets, face major economic highlighting the outsized influence China
and geopolitical challenges. In the will bear relative to all other markets.
former, low oil prices have brought
GDP growth to a screeching halt, while
the Syrian refugee crisis continues
to rock the latter. In the longer term,
these two large, diverse nations will
see the secular trends benefiting other
emerging regions, from urbanization to In this publication, “China” refers to the
tech adoption, play out on a grand scale. mainland China market, and “Hong Kong”
refers to the Hong Kong special administrative
region of China.
Emerging markets matter | 5
Figure 2: Premium growth by country
Total insurance premium growth, US$m
Total insurance premiums in 2020 vs. 2015
China
India
South Korea
South Africa
Indonesia
Russia
Malaysia
Mexico
Singapore
Hong Kong
UAE
Chile
Turkey
Argentina
Saudi Arabia
Thailand
Colombia
Vietnam
Consistent with our forecast Nigeria
of three years ago, China Kenya
Uganda
remains the dominant engine Brazil
of insurance market growth –100 0 100 200 300
in emerging economies. Source : Oxford Economics, Swiss Re
While a regional analysis is instructive, Figure 3: Changes in insurance premiums
a breakdown by individual markets also
highlights specific areas of opportunity. Total insurance premium growth, US$m
In addition to the markets noted Total insurance premiums in 2015 less total insurance premiums in 2013
above, South Korea, South Africa and
Malaysia are markets where a rising China
middle class and the advent of new India
internet and mobile platforms will Brazil
help boost the prospects for growth of
South Africa
insurance coverage.
Russia
It is instructive to illustrate the degree Mexico
to which the prospects in specific Indonesia
markets today differ from the forecast Thailand
in 2013. Figure 3 contrasts future Hong Kong
potential growth in insurance premiums Estimated, February 2016
Turkey
with previous forecasts. As the data Forecast, September 2013
Malaysia
makes clear, prospects for insurance
UAE
growth in Brazil, South Africa and
Russia have weakened considerably, Colombia
while the outlook in nations as diverse Chile
as Indonesia, Mexico and Turkey have Saudi Arabia
also deteriorated because of political Vietnam
setbacks and adverse prices for oil and Nigeria
other commodities. Kenya
–$50 –$25 $0 $25 $50 $75 $100
Source : Oxford Economics, Swiss Re
6 | Emerging markets matter
China is projected to account for almost
60% of expected worldwide premium growth
by 2020.
Figure 4: Changes in growth projections for emerging markets The relationship between deteriorating
commodity prices and lowered economic
GDP growth in emerging markets projections for emerging markets
Percent change over previous year is fairly straightforward. In many
of these markets, commodity-price
9%
spikes drive exports, employment,
foreign investment and government
8%
spending. When commodity prices
7% suddenly collapse, economic activity and
Forecast
investment also fall. So 2015 marked
6% September 2013 a year of recession in many of these
markets, and aggregate growth across
5% emerging markets is likely to fall by one
February 2016
or two percentage points by 2020, with
4%
Brazil and Russia likely to experience
3% particularly sharp retrenchment.
Not all emerging markets are expected
2% Forecast
to see a significant slowdown in overall
economic growth. Notably, output in
1%
Mexico and Kenya will likely exceed
0% previous estimates, while in economies
like Nigeria and Indonesia, the pace
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
of economic growth between now and
Source : Oxford Economics, Haver Analytics 2020 has been trimmed by only about
one percentage point. Figure 5 shows
the potential overall slowdown for
growth in emerging markets.
Emerging markets matter | 7
Urbanization will continue to Figure 5: Slower underlying growth expected in emerging markets
boost opportunities
Many emerging markets will remain GDP growth slower across emerging markets
attractive for insurers because their Average annual GDP growth (%)
urban populations are rising and the
overall level of insurance penetration
12% 2005–2015
remains low. This suggests real
opportunities to educate a rising 2016–2020
10%
middle class on the financial benefits
of insurance as a means to boost sales.
8%
As Figure 6 illustrates, continuing
urbanization in nations like Indonesia,
6%
Mexico, Turkey, Colombia and Nigeria
suggests major growth opportunities
4%
for the insurance industry, as the rate
of insurance penetration lags the rapid
2%
urbanization taking place.
0%
Exchange rates pose concerns
Russia
Turkey
Brazil
Argentina
Saudi Arabia
South Africa
South Korea
Hong Kong
Mexico
UAE
Thailand
Chile
Colombia
Malaysia
Kenya
Singapore
Nigeria
Indonesia
China
Uganda
Vietnam
India
For foreign insurers, the exchange
rate outlook is also important, and for
many emerging markets, the rise of US
interest rates and lower oil prices have
led to further deterioration. Brazil is
expected to be affected the most, with Source : Oxford Economics, Haver Analytics
depreciation continuing through the
rest of the decade. Russia’s exchange
rate will likely bottom out in 2016,
appreciating modestly in subsequent
years. However, this retrenchment will Figure 6: Urbanization will boost insurance sales
be less significant in markets with an
exchange rate fixed to the US dollar Insurance density and urban population, 2015
(such as Hong Kong, Saudi Arabia and
the UAE) or with a tightly managed float 700
(such as China).
While expansion in rapid-growth markets 600
Insurance premia per head of population
Chile
has encountered some unexpected head
winds, the risk profile for many markets 500 Malaysia
in our survey has also deteriorated.
The risk index constructed in this report, 400
Argentina
which is based on analysis of political
uncertainty, the ability of a nation to pay Thailand Brazil
300
its international debts and trade risks, China
Saudi Arabia
accounts for currency volatility as well
as overall economic conditions. 200 s" Mexico
ter
a dop Colombia
rly
100 "Ea
Vietnam Indonesia Turkey, Russia
Kenya
Uganda India Nigeria
0
0% 20% 40% 60% 80% 100%
Proportion of population living in urban areas
8 | Emerging markets matterWhile certain markets in Asia like In other markets, political risks have
Singapore and South Korea seem fairly risen. Brazil has experienced a wave of
stable, the risk in a number of markets civil protest against the government
across Africa has actually increased, as of Dilma Rousseff amid allegations
the value of local currencies has fallen of widespread corruption, while
relative to the dollar and prices for oil Nigeria and Uganda face potential
and other commodities have weakened. trade difficulties.
Across a number of the markets covered To help guide global firms seeking to
in this survey, the potential for lingering chart their course across a variety of
weak commodity demand will likely emerging markets, we have recompiled
trigger financial strains as government a matrix that combines an assessment
revenues from extraction fees and taxes, of future opportunities for insurance
as well as from employment, decline. premium growth with a ranking of
This can cause governments to impose potential economic and political risks.
additional austerity measures.
The most attractive markets,
Figure 7: Risk components deconstructed which combine high potential
Components of risk in emerging markets
growth with relatively lower
Each component measured on 0-1 scale, 1=maximum risk risk, are mainly in Asia.
Political
Trade
3.0
Sovereign
2.5
2.0 Riskiest
1.5
1.0 Most stable
0.5
0.0
Singapore
Hong Kong
South Korea
Chile
Malaysia
UAE
Saudi Arabia
China
Mexico
Thailand
South Africa
Colombia
Indonesia
India
Turkey
Brazil
Kenya
Russia
Vietnam
Argentina
Nigeria
Uganda
Source : Oxford Economics, Haver Analytics
Emerging markets matter | 9Figure 8: Risk-opportunity matrix
Matrix of opportunity and risk for insurance investment
As Figure 8 shows, the most attractive How we created our risk- • Macroeconomic factors and
markets, which combine high potential opportunity indexes and matrix supply‑side environment (e.g., labor,
growth with relatively lower risk, are We arrived at our risk and opportunity market conditions, strength of
mainly in Asia. While China is by far scores by analyzing economic conditions financial sector)
the biggest potential growth market, for growth and potential hazards in each
Malaysia, Indonesia and India also offer The risk index includes these elements:
of the 22 markets in this survey.
potentially attractive opportunities. • Macroeconomic risk (low GDP growth,
Singapore, Hong Kong and South Korea The opportunity index includes these high inflation)
offer low risk, but much smaller growth elements: • Political, regulatory and corruption
potential. Brazil, which in our last report • Insurance market size risk
appeared on the road to sustainable • Forecast premium growth • Sovereign and trade credit risk
growth, is now likely to record negative • Insurance market penetration • Underperformance in technology
growth over the next three years and saturation and urbanization
and is no longer a very attractive
investment target.
0.8
High risk, low growth High risk, high growth
0.7 Uganda Nigeria
Argentina
Vietnam Russia
0.6
Kenya
Brazil
India
Risk (0=lowest risk, 1=greatest risk)
0.5 Turkey
Indonesia
Thailand Colombia South
0.4 Africa
Mexico Saudi China
0.3 Arabia
UAE
South Korea
Chile
0.2
Malaysia
0.1
Hong
Kong Singapore
0.0 Low risk, low growth Low risk, high growth
-20% 0% 20% 40% 60% 80% 100%
-0.1 US$ Value market growth, 2015-20
10 | Emerging markets matterNigeria scores second only to
China, as shown in Figure 9.
Figure 9: Risk-opportunity ranking by market
Opportunity Opportunity Risk Risk
Higher score = Higher score =
More opportunity score More risk score
1 China 77.4 1 Singapore 2.0
2 Nigeria 67.3 2 Hong Kong 6.8
3 Indonesia 59.0 3 South Korea 17.3
4 India 54.2 4 Chile 17.7
5 Malaysia 52.2 5 Malaysia 23.1
While China is by far
6 Uganda 47.6 6 UAE 25.3
the biggest potential
7 Russia 47.3 7 Saudi Arabia 31.7 growth market, Malaysia,
8 Vietnam 46.3 8 China 31.7 Indonesia and India
9 Chile 39.7 9 Mexico 36.6 also offer potentially
10 UAE 39.6 10 Thailand 36.9 attractive opportunities.
11 Saudi Arabia 37.8 11 South Africa 40.1
12 South Korea 34.4 12 Colombia 40.5
13 Turkey 32.4 13 Indonesia 42.9
14 South Africa 32.3 14 India 44.4
15 Singapore 32.1 15 Turkey 46.9
16 Colombia 31.2 16 Brazil 48.4
17 Mexico 30.6 17 Kenya 56.7
18 Kenya 25.0 18 Russia 57.0
19 Argentina 24.9 19 Vietnam 59.3
20 Thailand 22.1 20 Argentina 65.2
21 Hong Kong 21.5 21 Nigeria 68.3
22 Brazil 8.6 22 Uganda 68.6
Emerging markets matter | 11Asia India and South Korea should each see their annual premium levels rise by around US$50 billion by 2020.
Analysis by region
Figure 10: Risk-opportunity
Favorable demographic trends and the ability of new technology to ranking by market, Asia
allow companies to leapfrog antiquated infrastructure help explain
why Asia remains an important focus for companies looking to boost
their investment in emerging markets. In addition, despite a slowdown Opportunity Opportunity
in China’s growth rate, which affects many countries in the region, Higher score =
score
More opportunity
expansion in Asia is still projected to exceed growth in the developed
1 China 77.4
world. Moreover, China’s massive adoption of mobile phones and
e-commerce offers significant opportunities for innovation to take 3 Indonesia 59.0
root across the insurance industry. 4 India 54.2
5 Malaysia 52.2
As Figure 11 illustrates, both Indonesia and China are expected to 8 Vietnam 46.3
experience annual premium growth exceeding 15% over the next five 12 South Korea 34.4
years, but this statistic understates how much bigger the Chinese 15 Singapore 32.1
insurance industry is relative to any other in the region. 20 Thailand 22.1
21 Hong Kong 21.5
Figure 11: Projected insurance premium growth by
country 2015–20
Risk Risk
16+84+D 16+84D 15+85D
CAGR, domestic insurance premiums, 2015–20 Higher score =
More risk score
1 Singapore 2.0
2 Hong Kong 6.8
16 %
16 %
15 %
3 South Korea 17.3
5 Malaysia 23.1
8 China 31.7
14+86+D 10+90D 8+92+D
Indonesia China Malaysia
10 Thailand 36.9
13 Indonesia 42.9
14 India 44.4
14 %
10 %
8 %
19 Vietnam 59.3
6+94+D 4+96D 3+97+D
India Vietnam Singapore
6% 4% 3%
South Korea Hong Kong Thailand
Source: Oxford Economics, Haver Analytics
Emerging markets matter | 13Figure 12: Risk components in emerging Asia
Components of risk in emerging markets, Asia
Each component measured on 0-1 scale, 1=maximum risk
2.0
Political
1.8
Trade
Riskiest
Soveriegn
1.6
1.4
1.2
1.0
0.8
There is also a clear correlation Most stable
between growth of the middle class 0.6
and an appetite for insurance products.
As Figure 13 demonstrates, China, 0.4
India, Indonesia and Malaysia are all
expected to see significant expansion 0.2
in the number of households earning in
0.0
excess of US$20,000 per year.
Singapore Hong South Malaysia China Thailand Indonesia India Vietnam
Kong Korea
Source: Oxford Economics, Haver Analytics
Figure 13: Middle class rising, by the millions
Middle class growth, 2016-20
Additional millions of people living in households with an annual income greater than US$20K
250
200
150
100
50
0
Singapore
Hong Kong
UAE
Kenya
South Africa
Thailand
Vietnam
Chile
Saudi Arabia
South Korea
Colombia
Argentina
Malaysia
Brazil
Mexico
Turkey
India
China
Nigeria
Russia
Indonesia
Source: Oxford Economics, Haver Analytics
14 | Emerging markets matterChina’s massive adoption of mobile
phones and e-commerce offers significant
opportunities for innovation to take root
across the insurance industry.
China
Rating: Higher growth, Recently, a division of Alibaba, the giant
lower risk e-commerce company, announced a
With the world’s largest population major initiative to build an internet-
and a rapidly expanding middle class, based health insurance program aligned
China will remain the prime focus of with China Taiping Insurance and others.
attention for many global insurers, The Insurance Association of China
even if the torrid underlying growth has estimated that online insurance
The Insurance Association
of the past decade is likely to be premiums grew 260% during the first
tempered somewhat. half of 2015. of China has estimated that
online insurance premiums
Based on macroeconomic projections However, China’s insurance regulators
and risk analysis, mainland China have raised alarms about potential risks grew 260% during the first
remains the single most attractive in the industry, as aggressive stock half of 2015.
market in the region, if not among purchases by domestic insurers and
all emerging markets globally. sales of high-return products could
Nevertheless, the transition from damage the country’s financial system.
an investment and export-oriented Moreover, other large Chinese firms
economy to one more focused on have become aggressive overseas
consumer-led growth is likely to investors in an effort to move Chinese
prove beneficial to insurers, as is funds out of the country. For example,
the rapid adoption of mobile and Anbang acquired the South Korean
web-based commerce. unit of Allianz, while PICC Property
& Casualty Co., a unit of state-owned
As China faces the challenges of a
People’s Insurance Company of China
rapidly aging population, growth in
health insurance is likely to be strong.
Emerging markets matter | 1522+78+T
(PICC), agreed to buy Deutsche Bank’s Regulators are building more analytical
nearly 20% stake in China’s Hua Xia tools to improve efficiency and accuracy,
Bank for up to 25.7 billion yuan. consequently pushing insurance
21.7 %
companies to rely more on their
PICC has already demonstrated profits
analytical capabilities. A risk-sensitive
can be made in auto insurance, as
insurance solvency regime (C-ROSS) also
Chinese regulators have introduced
became effective in January 2016.
pilot projects in six provinces and cities,
giving insurers greater flexibility to
set premiums, including the creation
of risk-based pricing. While these new Hong Kong
premiums generated lower profits,
Figures from Hong Kong’s incentives for good driving also created Rating: lower growth,
Office of the Commissioner fewer claims.1 lower risk
Foreign insurers continue to face Buyers from mainland China have
of Insurance (OCI) show that
an uphill battle entering the market exerted significant impact on the Hong
in the first nine months of Kong insurance market. Figures from
despite continuing, albeit slow, market
2015, mainland Chinese liberalization. According to the China from the OCI show that in the first
spent HK$21.1 billion, Insurance Regulatory Commission nine months of 2015, mainlanders
representing 21.7% of new (CIRC), overseas life insurers’ market spent HK$21.1 billion, representing
premiums, compared with share declined to 5.6% in 2013 21.7% of new premiums, compared
compared with 8.9% in 2005. Foreign with just 9% in 2011. Mainlanders are
just 9% in 2011.
property and casualty (P&C) insurers being attracted by the wider choice of
have not fared any better, having failed policies, higher investment returns and
to grow market share from 1.3% since the perceived security of dealing with
2005. Frustrated and disillusioned global international brands with a long
by the slow pace of deregulation and history and sophisticated reputation.
increasing local competition, some firms The Chinese government has stepped
reduced ownership in their China joint up efforts in recent months, however,
ventures about five years ago. New to limit such sales by making it harder
York Life quit China completely in 2011, for policyholders to move their money
and in 2015, Insurance Australia Group out of China, so some uncertainty
(IAG) decided to abandon what had been will remain.
planned as an aggressive foray into the Moreover, a series of new regulatory
market. policies taking shape within Hong Kong
For P&C insurers in China, the market- is also affecting the prospects of market
based pricing reform will benefit big players, both large and small. New laws
companies significantly through better are intended to boost competition, and
segmentation. Small companies need the new Guidance Note on Underwriting
to be innovative to grow premiums and (GN15) has forced many firms to alter
profitability through specialty insurance. the ways they structure and market
investment-linked assurance schemes.
For foreign firms, developing a robust Hong Kong is also preparing to revamp
digital strategy to capitalize on the use its solvency regime to accommodate
of mobile devices for transactions offers a risk-based capital (RBC) framework.
a significant opportunity. Established In addition, the rollout of a new
insurers are already trying to promote regulatory body, the Independent
more internet interactions between Insurance Authority, will generate
policyholders and agents, to improve some uncertainties.
cross-selling business opportunities. And
some new insurers are trying to develop
an internet-only business model.
1
PICC P&C no car crash, Financial Times, 30 March 2016
16 | Emerging markets matterMalaysia is expected to see significant
expansion in the number of households
earning in excess of US$20,000 per year.
50+50+T
Malaysia
50%
Rating: higher growth, This suggests that as an “early
lower risk adopter,” Malaysia could be seen as
Sharia-compliant takaful insurance has a potential test pilot for insurance
gained a firm foothold in Malaysia, and innovation, as consumers embrace
foreign insurers have been attracted the digital era, forcing insurers to
to the market’s growth potential, as rethink their distribution strategies and
the insurance sector is still relatively partner relationships.
under-penetrated. Moreover, the Liberalization of the motor insurance
growth of mobile technologies will market is also expected to promote
compel incumbent firms to rethink greater pricing flexibility and A recent study by AIG Asia-
their distribution strategies, as digital competition as carriers move toward Pacific estimated that the
operations and offshoring of back-office risk-based premiums that take a driver’s
functions could recast the competitive
cyber insurance market could
record into account. Liberalization is grow by 50% this year.
landscape. Malaysia is notable because, expected to begin in July 2016, but it
as in Chile and Thailand, the ratio of will be carried out in phases to allow
insurance premiums generated per both the introduction of new products
capita is actually higher than the global and market-based rates. Expansion in
average, based on the urbanization rate the takaful market is also likely.
of the country and the widespread use
of mobile technologies.
Emerging markets matter | 1725+75+T
Singapore Thailand
25
Rating: lower growth, Rating: lower growth,
% lower risk
As one of the world’s most open
moderate risk
The long-term growth prospects for
insurance markets, Singapore serves as insurance premium growth in Thailand,
a gateway to the rest of Asia for many Southeast Asia’s second-largest
foreign firms. While Asia’s middle class economy, remains strong, the result of
is increasing, it is also aging rapidly, with an aging population, the rising levels of
citizens over 60 years old expected to household wealth and a low penetration
triple, to some 1.3 billion, by 2050. Life rate — just 4.1% for life insurance and
The population of Thai insurance and retirement planning are 1.7% for non-life policies, according to
residents over the age of 60 attractive opportunities. the Thai General Insurance Association
will rise to 25%. In the past year, the government has (TGIA). The country remains subject
to political uncertainties, however, as
allowed insurers to sell products directly
the military continues to govern after
to consumers. These products, known
pitched civil conflict.
as direct purchase insurance, include
life and disability coverage and are Within the next 20 years, the population
sold without commission but have not of Thai residents over the age of 60 will
yet taken a large share of the market. rise to 25%. Because of the relative lack
Moreover, as Singapore seeks to position of public hospitals, many middle and
itself as a regional software and IT hub, upper-class consumers rely more on
demand for cybersecurity insurance is private health insurance for access to
expected to skyrocket. A recent study private facilities.
by AIG Asia-Pacific estimated that the
Thailand is also experimenting with new
cyber insurance market could grow
digital strategies to empower insurance
by 50% this year, as more businesses consumers. Claim Di, a Thai start-up
look to mitigate the high reputational
whose mobile app allows drivers to
and financial risks associated with report claims and connect directly
cyber breaches. to their insurance providers, secured
With the government regulator moving US$2 million in venture-backed funding
to incorporate RBC standards for last year. The company will also offer
insurance providers, most are being roadside assistance, a call center for
required to increase their capital providers and a navigation service to
bases significantly. The Monetary speed investigators to the scene of an
Authority has also made the Own Risk accident to assess damages.
and Solvency Assessment (ORSA) With a slowdown in car sales
mandatory for all insurers in Singapore, expected, some providers are moving
which has led to an increased focus on more aggressively into marine
robust enterprise risk management and infrastructure insurance. But
(ERM) frameworks. The government the bancassurance model remains
has also directed insurers to specifically an important channel for life
assess the risk from cybercrime in their insurance sales.
annual risk assessments.
18 | Emerging markets matterJust 6 million out of 90 million Vietnamese
own life insurance, indicating there is major
room for potential expansion.
15+85+T
Vietnam
Rating: moderate growth, However, companies in Vietnam are
higher risk already experimenting with using
14
Non-life insurance premiums grew by mobile phones to collect premiums. One
about 14% in 2015, while life insurance
premiums were projected to grow by
project, sponsored by Manulife Vietnam,
works with the Vietnam Women’s Union
%
nearly 30%, to a value of about US$1.7 to provide a micro-insurance product,
billion, according to government My Companion, to poor women in rural
estimates. Nevertheless, insurance areas. After four years, it has covered
penetration in the country is low; just 6 more than 130,000 women across 15
million out of 90 million Vietnamese own provinces, the vast majority of whom
life insurance, indicating there is major now have mobile phones.
room for potential expansion.
Non-life insurance premiums
Further liberalization of the insurance
grew by about 14% in 2015.
The unpredictable pace of economic market could create more opportunities
reforms within Vietnam has made the for foreign investors.
market less attractive than others within
this fast-growing region. Regulations
normally require foreign firms to
set up joint venture operations with
Vietnamese counterparts. In February
2016, for example, Vietnam’s Bank for
Investment and Development signed
a cooperation deal to promote life
insurance with MetLife.
Emerging markets matter | 19Indonesia
Rating: higher growth, OJK has actively introduced new check on the progress of their cars via
moderate risk policies and regulations in recent an app that allows them to see pictures
As the world’s single largest Muslim years. This includes a new insurance as the repairs progress.
nation, Indonesia offers global firms a law in 2014 that gives policyholders The current low-interest-rate
major opportunity to develop sharia- priority if a conventional or sharia environment has contributed to a
compliant, takaful insurance programs. insurer or reinsurer is liquidated or difficult operating situation for foreign
becomes bankrupt. Other changes insurers in South Korea, however, and
By 2020, an additional 40 million people
include optimizing domestic reinsurance some foreign players have exited the
are projected to join Indonesia’s middle
capacity and regulating tariffs for market. In April 2016, Allianz sold its
class — at nearly 140%, the highest
property and motor insurance. A business to Anbang, the acquisitive
growth rate in percentage terms among
new law also bars the Indonesian Chinese group that failed in its bid to
nations in our survey. No wonder
government from bailing out acquire Starwood Hotels, following
foreign insurers like AIG and Sun Life
commercial banks when they face earlier exits by HSBC and ING. Some
have begun to expand their presence in
financial problems. of these firms offered high-interest-
the country.
rate guarantees to policyholders in the
While Indonesia clearly offers
opportunity for firms that want to
pioneer micro-insurance and mobile
South Korea past, which are no longer profitable. In
addition, new Solvency II rules in Europe
require insurers to set aside more capital
payments, the acceptance of these
Rating: lower growth, to cover such interest-rate guarantees,
innovative products has been relatively
lower risk potentially crimping future earnings.
slow. While an estimated 60% of
With leading industrial companies like
Indonesia’s population has access to Other foreign insurers such as ING,
Hyundai and Posco and technology
a mobile phone, less than 5% were HSBC and Standard Chartered have
innovators like Samsung leading
aware of the concept of mobile money. reduced their exposure to the market
its global economic growth, South
Moreover the economic slowdown in recent years, while Chinese insurers
Korea can no longer be considered
over the past year has caused a seem interested in establishing a
an emerging economy. In fact, the
retrenchment in purchases of life larger foothold.
penetration rate for insurance in South
insurance products.
Korea is relatively high, at approximately
Although the Financial Services 12%, compared with the global average
Authority (OJK, the state regulator) of 8.5% for developed nations. In a
launched a joint effort with banking fiercely competitive market, local
institutions to promote financial companies like Samsung, Hanwha and
inclusion, known as Laku Pandai, a Kyobo Life hold strong positions.
recent survey found most people from
What South Korea does offer foreign
low-income households are reluctant
insurance firms is the opportunity to
to let individual agents take care of
embed in an increasingly sophisticated
their savings under the government’s
consumer market, develop mobile
branchless banking program2.
platforms to engage with customers,
As Indonesia is expanding its spending and fine-tune products for claim
on infrastructure, the life and health processing and back-office functions.
sectors should both benefit due to For example, AXA, the French insurer,
regulatory requirements attached to is leading innovation in the Korean
these projects. auto insurance market by switching to
a charge-by-mileage premium system,
as well as by providing information
on car repairs through policyholders’
mobile devices. “Customers who drive
less should pay lower premiums,” the
company says. Customers can also
http://www.thejakartapost.com/news/2016/03/16/trust-issues-may-hamper-ri-financial-inclusion-campaign.html-0
2
20 | Emerging markets matterWith a giant population and rapidly growing middle
class, India has long been considered an attractive
investment target for global insurers.
60+40+T
India
Rating: higher growth, The insurance market in India is ripe
modest risk for digital innovation from foreign
Now that the cap on foreign direct players, as insurers will need to service
49%
investment (FDI) has been increased to a younger and more technology-savvy
49% from 26%, global insurance firms population. To dislodge local firms,
have far more incentives to consider foreign insurers can develop new
deeper participation in the Indian distribution channels and sophisticated,
market, where new investments can specialized products. Investments in
boost solvency and penetration rates. IT to optimize operations can also be
anticipated in addition to spending on
With a giant population and rapidly
data analytics and telematics.
growing middle class, India has
long been considered an attractive The Government’s focus on further Now that the cap on foreign
investment target for global insurers. economic reforms and increased direct investment (FDI)
Indeed, overall FDI across the country spending on priority areas, including has been increased to 49%
hit a record US$42 billion in 2015, and the rural sector, infrastructure and from 26%, global insurance
the country’s 7.2% growth rate exceeded employment growth, should also companies have far more
that of China. bolster premium growth. Moreover,
incentives to consider
the new FDI rules and public listing of
While the economy is resilient, and deeper participation in the
insurance companies should accelerate
the administration of Prime Minister
consolidation and mergers. Indian market.
Narendra Modi has promised to continue
to boost investment in manufacturing,
challenges to a rapid boost in insurance
penetration persist.
Emerging markets matter | 21Latin America In Mexico, P&C firms will gain from the introduction of mandatory liability insurance on federal highway construction and new infrastructure projects.
Improving economic conditions in Mexico and Chile are
counterbalanced by the rapid deterioration in Brazil, a country
facing both political and economic uncertainties. Rapid reforms now
unfolding in Argentina could help spur a new level of growth. Some
markets are already seeing significant innovations as the mobile phone
and micro-insurance carriers offer new opportunities to innovate.
Argentina Brazil
Rating: lower growth, Ranking: negative growth, Figure 14: Risk-opportunity
higher risk high risk scores, Latin America
A new center-right government, led Recession and political upheaval
by President Mauricio Macri, has the dominate the headlines in Brazil, as
Opportunity Opportunity
potential to engineer a real turnaround the scandal-plagued government Higher score =
in Argentina, turning it into a rare bright of President Dilma Rousseff More opportunity score
spot among emerging markets. But faces impeachment, and the
9 Chile 39.7
progress will take time. By resolving plunge in oil prices has rapidly
the long-running dispute with US boosted unemployment. 16 Colombia 31.2
creditors over delinquent payments 17 Mexico 30.6
The Brazilian insurance market
for sovereign debt, Argentina has now continues to be very concentrated, with 19 Argentina 24.9
rejoined the global capital markets, 10 major insurance groups representing 22 Brazil 8.6
leading to an upgrade in the credit rating approximately 85% of direct premiums in
of many domestic insurers. Moreover, 2013. The domestic insurance industry
the administration’s goal of tackling has been liberalized to allow foreign
inflation and reducing the nation’s large investment in the emerging growth of Risk Risk
fiscal deficit would clearly benefit the Higher score =
the nation’s industry, but the sudden More risk score
insurance sector, since the constant turnaround in Brazil’s fortunes could
run-up in prices has made business dampen foreign interest, now that the 4 Chile 17.7
conditions difficult. 9 Mexico 36.6
risks have grown more pronounced.
Under the previous administration, 12 Colombia 40.5
Brazil’s insurance regulator began to
the insurance industry was buffeted by encourage micro-insurance strategies 16 Brazil 48.4
constant regulatory changes, including in 2012, and Brazil had been seen
rules for reinsurance and restrictions on 20 Argentina 65.2
as a potentially attractive testing
foreign investments of local premiums. ground for innovative experiments.
So fewer regulations and higher growth For example, IFFCO-Tokio provides a
could spark the industry here. However, digital pen to agents working in remote
new regulators for consumer protection areas to collect clients’ insurance policy
and the implementation of risk-based details, while Caixa Seguros distributes
capital measures can also be expected. funeral insurance through sellers of
lottery tickets. There will be increasing
opportunities for digital operations
to emerge in the insurance industry.
Insurers are now being compelled to
develop an ERM system and risk, and
solvency regulations (ORSA) will be in
force by 2017.
Emerging markets matter | 23Figure 15: Projected growth rates for insurance premiums in Latin America
11+89+D 7+93+D 7+93D
CAGR, domestic insurance premiums, 2015–20
11% 7% 7%
6+94+D 94+D
Chile Colombia Mexico
6% -3%
Chile has the highest Argentina Brazil
insurance penetration and
Source: Oxford Economics, Haver Analytics
density in the region, and
premiums are estimated to
exceed 4% of GDP.
Figure 16: Risk components in emerging Latin America
Components of risk in emerging markets, Latin America Political
Each component measured on 0-1 scale, 1=maximum risk
Trade
Sovereign
2.0 Riskiest
1.8
1.6
1.4
1.2
1.0
Most stable
0.8
0.6
0.4
0.2
0.0
Chile Mexico Colombia Brazil Argentina
Source: Oxford Economics, Haver Analytics
24 | Emerging markets matterChile Insurance continues to be one of the
most regulated sectors, along with
banking, and the local regulator is
Rating: modest growth, implementing new regulations to
lower risk strengthen both solvency and mandated
Among Latin-American nations included reserves. The prospect for insurance
in this survey, Chile is notable for its firms to develop digital channels for
relative openness to foreign insurers. selling policies and processing claims is
Indeed, most premiums in both the life still in its infancy.
and non-life sector are sold by foreign
firms. While Chile boasts the most stable
market in Latin America, the cost of
doing business remains high. Indeed,
Mexico
more M&A activity is likely in the market,
Rating: modest growth,
as the country moves to embrace
modest risk
Solvency II regulations.
Solid growth and rising consumer and
Chile has the highest insurance business demand should mean that
penetration and density in the region, growth in the insurance industry is likely
and premiums are estimated to exceed to outpace GDP growth again this year,
4% of GDP. A local version of Solvency II as it has for the past several. Due to its Due to its ever-closer
can be expected within the next two to ever-closer economic integration with economic integration with
three years. Firms are investing rapidly the US since implementation of the the US since implementation
in building IT infrastructure to improve North America Free Trade Agreement of the North America
operational efficiency. (NAFTA) and a series of liberalization Free Trade Agreement
efforts, the economic prospects for the
However, new opportunities can (NAFTA) and a series of
be expected due to changes in the insurance market in Mexico is among the
most buoyant in the region. liberalizations efforts, the
health and pension systems, including
economic prospects for the
implementation of a pension reform While life insurers should benefit from
panel that increases retirement ages an expanding middle class, growth
insurance market in Mexico is
and increases mandatory contributions. in the population of young people among the most buoyant in
Meanwhile, reform of the private and rising incomes, P&C companies the region.
health care system is likely to produce will gain from the introduction of
opportunities for firms selling private mandatory liability insurance on
health insurance. federal highway construction and new
infrastructure projects.
Colombia However, insurance penetration in the
country remains low, highlighting the
need for companies to develop new
Rating: lower growth, products and channels, especially to
higher risk tap into lower-income households.
A reduction in political violence and New digital technologies are essential
civil unrest has helped boost the for the advance of micro-insurance
economic outlook in Colombia. Further in the market and to combat fraud.
strengthening of a tentative peace Already, some firms like New York Life
treaty could be a boon for economic have launched mobile apps that allow
growth, especially with the weakness their health insurance customers to
in the oil market. Though insurance access a range of useful data about
penetration is low, at about 2.5% of their coverage and health network,
GDP, the compound annual growth rate and other mobile apps are coming
(CAGR) of non-life companies has grown into the marketplace that promise to
impressively over the past half-decade, “customize” auto insurance.
at approximately 12%, which makes the
market’s potential attractive for both Solvency II will probably trigger some
local and foreign players. consolidation in the industry.
Emerging markets matter | 25Middle East— Africa A new law requiring compulsory health insurance for all Dubai residents, which will be implemented over two and a half years, is expected to be a key driver for the industry.
Across most of Africa, insurance penetration has traditionally been
low, and before the collapse of commodity prices in late 2015, growth
prospects for many countries in the region seemed favorable. Indeed,
since 2010, the sub-Saharan economies had consistently ranked
among the world’s fastest growing.
The collapse in oil prices and other minerals has introduced new
vulnerabilities, but over the longer term, rapid urbanization, growth in
the middle class and the use of mobile technologies offer the potential
for faster growth for insurers across the region. Enforcement of
regulations to stamp out fraud, corruption and other abuses is critical
for the increased growth of this sector, as is enhanced efforts at
consumer education.
UAE Saudi Arabia
Rating: modest growth, Rating: lower growth, Figure 17: Risk-opportunity
lower risk lower risk scores, MEA
The size of the insurance industry in the Saudi Arabia’s insurance market is now
Gulf has more than tripled since 2006, one of the largest in the Gulf, having
and insurance premiums have increased grown to rival that of the UAE. The
Opportunity Opportunity
Higher score =
with it. Premiums are projected to traditional prominence of corporate More opportunity score
grow by 12% CAGR to 2020. However, business in Saudi Arabia means that
2 Nigeria 67.3
this growth has also spurred increased brokers and agents play a larger role
competition and reduced the overall in the Kingdom than in other more 6 Uganda 47.6
profitability of the sector. Insurance developed markets. While growth 10 UAE 39.6
penetration equals about 2.2% of GDP, over the past half-decade has been
11 Saudi Arabia 37.8
making it among the highest in the Gulf. vigorous, the penetration rate is just
1.1%, meaning there is a high degree 14 South Africa 32.3
A new law requiring compulsory health
of untapped growth potential in the 18 Kenya 25.0
insurance for all Dubai residents, which
market. Premiums are projected to grow
will be implemented over two and a half
years, is expected to be a key driver for by 9% CAGR through 2020.
the industry. In addition, new regulations Because of a lack of product Risk Risk
aimed at strengthening governance, differentiation, insurers tend to compete Higher score =
More risk score
compliance and risk management could on price rather than on value-add
spur a round of consolidation. Naturally, services or unique product features. 6 UAE 25.3
the fall in oil prices has also dampened Health insurance has been the primary 7 Saudi Arabia 31.7
the overall growth outlook in the region. generator of premiums. However, the
11 South Africa 40.1
potential of new legislation to require
many public facilities like shopping 17 Kenya 56.7
malls, restaurants, and schools to carry 21 Nigeria 68.3
insurance could rapidly expand the size
22 Uganda 68.6
of the P&C market.
Emerging markets matter | 27Figure 18: Projected growth rates
for insurance premiums in Africa
South Africa Yet insurance penetration remains
minimal, suggesting major opportunity
for expansion.
CAGR, domestic insurance
Rating: lower growth,
higher risk Kenya today is a hub for commercial
premiums, 2015–20 activities across East Africa, and
South Africa remains by far the largest
15+85+D 12+88D
insurance market in Africa. Nearly Nairobi, the region’s megacity, houses
75% of all African insurance premiums much of the services and managerial
are generated in South Africa, as the talent deployed in neighboring
Uganda and Tanzania. Strong growth
15% 12%
country offers the region’s most mature
financial sector. The insurance industry is expected in Kenya’s telecoms and
is so saturated, however, that a number information technology sectors, as well
of firms hope to expand their revenues as in financial services and retail trade.
by entering other sub-Saharan markets. Capital inflows are strong.
9+91+D 9+91D
Nigeria UAE
Moreover, CAGR for the industry is not Kenya has also been a leader in
projected to exceed 8% through 2020. developing a mobile money platform,
New technologies, such as mobile, M-Pesa. A number of insurers already
online and collaborative tools, are likely employ it to fund basic insurance
9% 9% to play a critical role in expanding the
market for insurance, and we expect
coverage, though some executives
doubt it can ever replace the traditional
innovative mobile insurance solutions system of using agents and brokers for
to grow faster here than in many other higher-priced or more sophisticated
covers. An ambitious crop insurance
8+92+D 6+94D
Uganda Saudi Arabia global locations. For example, a start-
up called Riovic, a self-styled “Uber of program employing mobile phones has
insurance,” seeks to connect businesses been introduced with the support of the
with private investors who will back a World Bank.
8% 6% company’s risk.
However, new disrupters will not easily Nigeria
upend traditional sales approaches.
South African firms are already
Rating: higher growth,
South Africa Kenya investing to bring big data and predictive
higher risk
analytics into their operations, while
Growth prospects for the insurance
Source: Oxford Economics, Haver Analytics developing insurance platforms
industry in Nigeria seem robust — but
designed for the mobile phone.
so too are the risks. Just a year ago,
A new solvency assessment and observers were touting the prospects
management regime will boost capital for Nigeria’s growth after the World
requirements, while additional consumer Bank crowned it the continent’s biggest
protections are also in the works. economy, surpassing South Africa. With
very low penetration of insurance in
the country, the potential for growth
Kenya is immense. But reduced oil prices
and slowing industrial activity have
Rating: lower growth, forced a modest downward revision in
higher risk growth forecasts.
Mobile technology, a stable regulatory Though life insurance represents just
environment and an expanding 0.1% of GDP, premiums were growing
middle class will be the key drivers at better than 25% CAGR. After the
for growth in the insurance industry. collapse of oil prices, CAGR of 15% in
Kenya generated insurance premiums insurance premiums is still projected
of US$1.8 billion in 2014 (the largest through 2020.
in sub-Saharan Africa outside of
South Africa), and Oxford Economics
expects the Kenyan insurance market
to grow to US$2.2 billion by 2018.
28 | Emerging markets matter75+25+T
However, the insurance industry is
undercapitalized, fragmented and
Uganda
too small to take on larger risks.
75%
The expansion of insurance sales Rating: modest growth,
through mobile phones has been higher risk
significant, though. The insurance Today, insurance penetration is less than
regulator estimated that about 1% and represents just 0.6% of GDP.
100,000 subscribers were buying Uganda’s insurance market is driven by
micro-insurance each month, and an agency network that accounts for an
that the customer base had exceeded estimated 60% of premiums. In 2014,
600,000 within six months of the total premiums were only US$200
product’s launch. As nearly half the million. However, Uganda’s underlying
growth is among the strongest in Africa,
Nearly 75% of all African
population of Nigeria is Muslim, the
and foreign insurers appear interested insurance premiums are
potential for takaful to expand insurance
penetration is evident, but not all of in investing. generated in South Africa.
the operational guidelines necessary to Uganda’s insurance market is ripe for
grow this market have been established. deeper inroads for micro-insurance,
Recently, Microcred Nigeria announced especially outside of the capital,
a partnership with AXA Mansard to Kampala. Last year, the regulator
develop micro-insurance products in proposed new rules that will offer micro-
the country. insurance companies greater flexibility
and easier access to clients, as they
will not have to comply with the high
capital requirements of full insurance
companies. This should allow more
companies to enter the market.
Figure 19: Risk components in emerging MEA markets
Components of risk in emerging markets, MEA Political
Each component measured on 0–1 scale, 1=maximum risk
Trade
Sovereign
2.0 Riskiest
1.8
1.6
1.4
1.2
Most stable
1.0
0.8
0.6
0.4
0.2
0.0
UAE Saudi Arabia South Africa Kenya Nigeria Uganda
Source: Oxford Economics, Haver Analytics
Emerging markets matter | 29Europe A number of foreign companies have entered the Turkish market, and foreign insurers are estimated to generate about two-thirds of non-life premiums.
While most of Europe benefits from a mature insurance sector, this
report also briefly examines prospects in two “frontier” markets,
Turkey and Russia, where political uncertainty and unsettled
prospects with the West will affect insurance investors.
In both countries, however, geopolitical turmoil and macroeconomic
factors have triggered a downgrade in short-term prospects.
Turkey
Rating: modest growth, to price-cutting, however, along with a
higher risk decline in profitability. As a result, a cap
While Turkey has been seen by many on premiums for vehicle insurance is
foreign insurance carriers as an likely to be enacted.
intriguing insurance opportunity, the A return of political tranquility would Figure 20: Risk-opportunity
Syrian refugee crisis and political likely boost investor confidence and ranking, Europe
tension within Turkey have also lead to even greater investment in
heightened risks over the past 18 the insurance sector, as favorable
months. CAGR of 8% in insurance demographics and rising household Opportunity Opportunity
premiums is projected through 2020. incomes could be expected to boost life Higher score =
More opportunity score
Despite the political turbulence of two insurance sales. In addition, household
elections, Turkey achieved growth of 4% and health insurance are sectors that 7 Russia 47.3
in 2015, making it one of the stronger- may offer high growth potential. Micro- 13 Turkey 32.4
performing emerging markets. However, insurance is just beginning to take hold
growth is expected to cool in 2016, in the country
amid continuing conflict with the Kurds, Risk Risk
which in turn can be expected to cut into Higher score =
More risk score
tourism revenues, an important driver
of the domestic economy. Currency risks 15 Turkey 46.9
will also remain. Nevertheless, a number
18 Russia 57.0
of foreign companies have entered the
Turkish market, and foreign insurers
are estimated to generate about two-
thirds of non-life premiums. Strong
competition in the auto sector has led
Emerging markets matter | 31You can also read
