Waves of change

The shifting insurance landscape in rapid-growth markets

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Rapid-growth markets (RGMs) are essential to the expansion strategies of global insurers – and, a new wave of RGMs are rising alongside BRICs for insurance companies seeking to expand their business.

According to our new report, Waves of Change: The shifting insurance landscape in rapid-growth markets, elements of profound regulatory, macroeconomic and consumer change have shifted both the opportunity horizon and risk outlook.

Recognizing this shift, we worked with Oxford Economics to analyze the global rebalancing of insurance markets across the Americas, Asia, the Middle East and Africa.

The report features a matrix assessing the risk and opportunity profiles for 21 global RGMs (including China, Indonesia, Hong Kong, India, Turkey, the United Arab Emirates, Mexico and Brazil). It is designed to help insurance executives weigh the opportunities against the risks of doing business in individual economies, and the analysis reflects a variety of indicators and forecasts. These include the following:

  • Insurance premium growth
  • Regulatory change
  • Macroeconomic volatility
  • Liquidity risks
  • Corruption risk

Key findings from the report:

  • RGMs remain essential to growth strategies of global insurers and will account for a greater share of global insurance premiums.
  • The opportunities and risks within RGMs have become much more complex and many factors need to be considered
  • Profound change is rebalancing risks and opportunities
    • Slowing macroeconomic growth among the BRICs
    • Regulatory openings in Mexico, Turkey, Indonesia and elsewhere
    • Broad-based technology adoption
    • Shifting demographics

The right response for insurers

What’s clear is that globally focused insurance executives must understand and balance the considerable trade-offs between opportunities and risks as they target and prioritize investments in rapid-growth markets.

EY - Matrix of opportunity and risk for insurance investments