NewswireTODAY - /newswire/ -
London, United Kingdom, 2012/07/18 - Having witnessed modest growth between the years of 2006 and 2011, the global non-life insurance market is expected to continue this momentum over the next five years, growing at a compound annual growth rate (CAGR) of 4.2%.
Having witnessed modest growth between the years of 2006 and 2011, the global non-life insurance market is expected to continue this momentum over the next five years, growing at a compound annual growth rate (CAGR) of 4.2%, to reach a total market value of US $2,500 billion on 2017.
Market growth is set to be driven by the rapid industrialization and increasing trade volume within the global non-life insurance market and is anticipated to encourage the demand of non-life products such as marine insurance, insurance for catastrophic losses, and insurance for fixed assets.
Increasing per capita income in emerging economies such as China, India, Mexico, and South Africa is expected to encourage people to purchase vehicles and build homes, creating opportunities for non-life insurance.
During the past decade, non-life insurance market in India has moved towards a higher annual growth trajectory of 15% with Gross Written Premium of US $9.5 billion (Rs 425 billion in FY11) as compared to an average CAGR of 12.5% in the pre-liberalisation era of 1993-2001.
Despite achieving an impressive growth, the Indian non-life insurance market remains far from tapped, with penetration rates (premium to GDP ratios) remaining appallingly low at 0.7% in FY10 as compared to average of 4.6% in United States, 3% in Europe and 1.6% in Asia.
The global non-life insurance market continues to remain highly fragmented, and a combination of factors such as demographic condition, interest rate fluctuation, increasing catastrophic events, and government regulations look set to impact market dynamics significantly.