Insurance Markets: Asia Leapfrogs Ahead, Robust Growth in Singapore

  • Insurance markets shift up a gear: Global growth will climb to almost 6 percent over next ten years
  • Singapore’s insurance market to almost double in next ten years

Singapore, 5th July 2017 -- After the meager years of the financial and economic crisis, insurers can look ahead with more confidence: insurance premiums growth should accelerate to 5.9 percent over the next decade, from 3.1 percent between 2008 and 2016, says Allianz in its latest report on the growth prospects of global insurance markets. Asia ex-Japan is likely to continue reporting double-digit growth rates over the next ten years.

The Singaporean market is expected to grow by 5.7 percent per year over the next decade. This robust growth is nothing less than striking as Singaporeans already spend more on insurance than almost anyone else in the world: Premiums per capita were just shy of EUR 4,000 in 2016, only the Chinese in Hong Kong, the Swiss and the Danish pay more to protect their lives and belongings.

“The long lean spell of the crisis years is finally behind us”, said Michael Heise, Group Chief Economist of Allianz. “In particular, most emerging markets will continue to grow at breakneck speed, first and foremost China: Over the next ten years, one in three euros of additional global premiums will be earned in the Middle Kingdom.”

In Asia ex-Japan, Life insurance is expected to again show stronger growth than general insurance, and by a wide margin: 12.2 percent against 8.7 percent per year. In Singapore, the lead of the Life segment will be even more pronounced (6.0 percent vs 2.5 percent). This rapid expansion of Life markets in the region reflects the huge pent-up demand, as well as political support for private provisions in the region.

“Growth in Asian life markets will be extraordinary over the coming years”, commented Michaela Grimm, co-author of the study. “In 2050, more than half of the global population aged 80 and older will live in Asia; Singapore will be one of the “oldest” countries in the world. The good news is: New technologies such as digitalization can in future be used to allow more people to access and experience insurance cover by launching new products and providing better service.”