Page 28 - The Insurance Times January 2022

NON-LIFE

INSURANCE

INDUSTRY SLIPS

FURTHER IN

EMERGING

MARKETS LEAGUE

T he non-life insurance industry is witnessing period of time in both developed and emerging markets,

shifting trends across the front office, policy
insurers will find it increasingly difficult to achieve profitable
growth. The healthy economic environment with low
administration, and claims-the three core
functions of the insurance value chain. Between
now and 2021, more than half the growth of the global inflation has had a positive effect on insurance premium
growth in Emerging Asia and Latin America. In addition, in
economy is expected to come from emerging markets. Non- an attempt to encourage healthy competition, certain
life insurance premiums in emerging markets are foreseen markets have reduced state involvement and taken
to grow more than twice as fast as in industrialized insurance-enabling regulatory measures. Product innovation
countries. Life premiums are also expected to outpace those has also driven fast-paced growth in certain insurance
in industrialized countries. segments, including micro insurance and takaful.

Even though they face strong competition from domestic The use of multiple distribution channels has also helped
insurers, many international insurers plan to actively pursue insurance to reach a broader audience in emerging markets.
opportunities in the rapidly growing emerging markets. Insurance in emerging markets has experienced strong
Banks are also likely to leverage their branch networks to growth over the past decade and the outlook for the next
further penetrate these markets. However, with interest decade remains promising. Nonetheless, given the
rates expected to remain at low levels for an extended expectation of persistent low interest rates at least in the
near future, achieving profitable growth will become
About the author increasingly challenging in emerging markets.
Jagendra Kumar
Although insurers in emerging markets have seen stellar
Ex. CEO, premium expansion, achieving profitable growth is far from
Pearl Insurance Brokers the norm. For example, out of around 174 life insurers from
Jaipur a sample of Emerging Asian and Latin American markets,

28 The Insurance Times, January 2022