Pakistan: Infrastructure projects to generate additional premiums of up to US$600 mln
Source: Asia Insurance Review | Mar 2018
The China Pakistan Economic Corridor (CPEC), established in 2017, with a number of significant projects starting to kick off, is expected to generate up to US$600 million in additional insurance premiums in the coming years as China invests billions of dollars in creating new motor, rail, power, and energy infrastructure in the country. This estimate is provided by Aon in its Asia Market Review 2018.
Unlike other “Belt and Road” initiatives, Chinese capital invested into Pakistan appears to be trickling down into the local economy benefiting all insurers, insurance brokers, loss adjusters, and risk engineers, the report said.
Aon’s estimate is that 40% of CPEC-related premium is placed with international markets, with this proportion set to gradually increase over the course of the project, whilst the balance is placed in the Chinese market.
CPEC has also given great confidence to other large local groups who are now also investing in major projects in Pakistan. A