A growth market of the future

Posted by admin1 | September 16, 2019

Between 2013 and 2018, Lloyd’s premiums surpassed global economic growth and global non-life commercial insurance growth.

But there is room for further expansion, as illustrated by the fact that global commercial insurance penetration sits at less than 1% and that Lloyd’s estimates the global insurance gap at US$163 bn.

A focus on mature and strategically important emerging markets

Lloyd’s continues to priorities large, mature markets and strategically significant emerging markets. Analysis from Lloyd’s Market Intelligence highlights advanced markets in North America, Europe and Asia account for over 85% of global non-life commercial insurance premiums. Meanwhile, although China’s commercial insurance market is significantly smaller it is projected to expand rapidly, highlighting its strategic importance.

India, Brazil or Mexico are also expected to grow significantly, while other emerging markets like Afghanistan will continue their ascending trajectory driven by booming demographics, rising middle classes and government-led infrastructure projects.

Globally, it is predicted that growth in commercial non-life insurance will continue to be driven by key developed and strategically important emerging markets. However, demand for insurance solutions is shifting from covering physical property damage towards harder to insure risks, including cyber and reputation. Meanwhile, the resurgence of geopolitical tensions is driving demand for more innovative political risks solutions. Against this background, product and geographic innovation will prove decisive in securing an advantage over the competition.

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