Page 17 - The Insurance Times June 2025

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News

Foreign reinsurers’ market ued to increase their market share and quency of natural disasters will support
emerge as a threat to GIC Re. higher policy uptake and premium
share in India to surpass growth in the industry.”
50% in 2025 Malaysia general insur-
Licensed foreign reinsurers continue to ance industry to surpass US health insurance up-
expand their market presence in India, take faces uncertainty
with their share, in terms of gross writ- $7 billion by 2029
ten premiums (GWP), almost doubling The general insurance industry in Ma- amid Trump’s policies
from 25.8% in 2019 to 49% in 2023 (fi- laysia is projected to grow at a com- Fewer than half of low-income individu-
nancial year ending March 2024). Their pound annual growth rate (CAGR) of als in the US have private health insur-
market share is estimated to surpass 6.6% from MYR24.6 billion ($5.5 billion) ance*. Trump’s politics bring uncer-
50% in 2025, according to GlobalData, in 2025 to MYR31.8 billion ($7.2 billion) tainties to the pharmaceutical industry,
a leading data and analytics company. by 2029, in terms of gross written pre- which will likely translate into higher
The Indian reinsurance market is con- mium (GWP), according to GlobalData, health insurance rates for consumers,
centrated, with the top five a leading data and analytics company. potentially pricing out Americans with
reinsurers—four foreign reinsurers and Malaysian general insurance industry lower disposable income, while leaving
one domestic reinsurer—accounting to reach MYR24.6 billion ($5.5 billion) others underinsured, according to
for 95.4% of the GWP in 2023. The in 2025, reflecting an annual growth GlobalData, a leading data and
market share of the top four foreign rate of 6.6%. This growth is attributed analytics company.
reinsurers increased from 19.4% in to increased premium rates across 59.6% of US consumers hold private
2019 to 44.4% in 2023. lines, strong demand for natural catas- health insurance. Private health insur-
The expansion of foreign reinsurers is trophe insurance, economic recovery, ance premiums can be substantial, and
attributed to the supportive regulatory rising vehicle sales, and escalating there is a strong correlation between
environment, competitive pricing, flex- healthcare costs. Motor, property, and product holding and disposable income.
ible terms compared to General Insur- personal accident and health (PA&H) Lower-income individuals are less likely
ance Corporation of India (GIC Re), a insurance lines contributed 82.6% of to be able to afford private health in-
growing economy, and increasing in- the general insurance GWP in 2024. surance, with product holding falling to
surance penetration. All the top four Swarup Kumar Sahoo, Senior Insurance 40.6% among individuals in household
foreign reinsurers' GWP registered Analyst at GlobalData, comments: incomes under $20,000. Meanwhile,
double-digit CAGR during 2019-23. "Regulatory initiatives to develop the they would also face having to pay out
Although GIC Re retained its leading insurance market and increase insur- of pocket for their medical expenses,
position in 2023, its market share has ance penetration will drive the growth potentially leading to financial strain,
declined significantly from 74.2% in of the general insurance industry in which pushes them into debt or simply
2019 to 51% in 2023. Foreign reinsurers Malaysia. Additionally, the rising traf- not being able to afford the medical
such as Munich Re and Swiss Re contin- fic accident rate and increasing fre- care they need. T

16 June 2025 The Insurance Times