Global non-life market will surpass US$2.7 trillion by 2020 -MarketLine
Source: Asia Insurance Review | May 2017
The global non-life insurance market has experienced strong growth in recent years, registering a compound annual growth rate (CAGR) of 5.4% between 2011 and 2015 to reach a value of US$2.03 trillion, according to a MarketLine report.
The report shows that while market values have increased in all regions, global growth is primarily driven by healthy revenue increases in the US and China, both of which rank in the top three markets globally.
Mr Nicholas Wyatt, an analyst for MarketLine, explained: “Motor insurance is the biggest segment of the Chinese non-life insurance market, accounting for over 57% of its value. That segment has seen rapid growth year after year since third party cover became a legal requirement in 2006. An increase in the number of cars on the road, along with some drivers opting for more expensive, comprehensive cover, has created a boom that shows no signs of stopping.”
The global market is forecast to grow at a CAGR of 5.9% between 2015 and 2020 to surpass a value of $2.71 trillion and Mr Wyatt believes there is great scope for growth beyond that: “Motor insurance is comfortably the market’s largest segment and there are a still a number of sizeable, largely untapped markets.
“In countries such as Indonesia and South Africa, car insurance is not a legal requirement and there is a chance that such jurisdictions could bring their legislation into line with that of other nations. This could serve as a catalyst for further market growth.” A