Swiss Re, the largest reinsurnace company, has said that insurance in the emerging markets is expected to grow at a slower pace in 2008 and 2009, but its longer term growth prospects remain positive.
In India growth of new business in life insurance fell from 145.7% in 2006 to 9.6% in 2007. Annual growth is likely to drop from the 2002 to 2007 levels of 11.4% in life and 10.6% in non-life to 7-10% in life and 3-8% in non-life between 2008 and 2013, said the company its latest Sigma report. Growth in the life market slowed from 18% to 14% in 2007. Premium volume in 2007 amounted to $223billion. The strong performance of the stock markets in the first three quarters of 2007 led to increased sales of investment-linked life products.
The launch of new products and the increasing market share of bancassurance, the provision of insurance services by banks, also contributed significantly to the sector’s results.
Most of the regions decelerated only marginally from their record high levels of the previous year. In South and East Asia, Indonesia (+57%) grew the fastest in 2007. In real terms, emerging market premiums in the non-life sector grew by 11.6% in 2007. Premium volume in 2007 amounted to $199 billion. South and East Asia (+13%), Eastern Europe (+12%) and the Middle East (+12%) grew the fastest.