Page 18 - Insurance Times December 2021

insurance lines in business such as Prop- Anjuli concludes: “Increased govern- due to changes in regulations, which
erty, Liability and Marine, Aviation and ment spending as well as a successful lowered mandatory motor liability pre-
Transit. The country’s economy is ex- vaccine rollout are expected to provide mium prices by up to 50%. Decline in
pected to grow by 9.5% in 2021, up a boost to the country’s economic re- vehicle sales due to lockdown restric-
from a forecast of 7.5% in 2020, which covery in 2021. The government’s push tions also impacted premium in 2020.
is expected to further boost the for infrastructure expansion projects Motor insurance is expected to record
country’s general insurance industry.” along with the country’s geographic a growth of 6% in 2021 and 2022.

Property insurance is the largest seg- factors are expected to create new Personal accident and health (PA&H)
ment in the Chilean general insurance business opportunities for general in- and property insurance were the sec-
surers over the next few years.”
industry, accounting for 52.2% of gross ond and third-largest general insur-
written premiums in 2020. The ance lines with a share of 12.2% and
country’s vulnerability to natural haz- General insurance indus- 11.3%, respectively, in 2020.
ards as well as the damages suffered try in China to reach PA&H insurance provided by general
due to the social unrest in October 2019 insurers recorded the highest growth
supported growth of the Fire and Natu- US$313.0bn in 2025 of 21.2% in 2020 and benefitted from
ral Hazards insurance sub-segment, The general insurance industry in China the rising medical expenses and tax
which grew by over 25% in 2020. is projected to grow from CNY1.36 tril- exemptions. This insurance line is ex-
lion (US$196.8bn) in 2020 to CNY2.13
Srivastav notes: “The shift to renew- pected to maintain double-digit
able energy projects is also fueling de- trillion (US$313.0bn) in 2025, in terms growth in 2021 and 2022.
mand for Property Insurance in the of direct written premiums (DWP), Property insurance also recorded a
country. Increased investments to- forecasts GlobalData, a leading data strong growth of 14.0% in 2020 and was
and analytics company.
wards green energy projects such as majorly driven by agriculture insurance
the CLP740.0 billion (US$934.0 million) As per the latest data from GlobalData, which accounted for over 50% of the
Huemul wind project and Andes the general insurance industry in China property insurance DWP that year.
Renovables’ CLP1.4 trillion (US$1.8 bil- is expected to grow at a compound Government subsidies on premium
lion) renewable energy platform in annual growth rate (CAGR) of 9.5% prices and insurance to cover frequent
2020 is expected to support the Prop- over 2020-2025. However, the fore- Nat-cat losses supported the growth of
erty Insurance industry, which is fore- cast remains shadowed by regulatory agriculture insurance in China. New
casted to grow at a CAGR of 9.7% dur- changes, the ongoing economic chal- product development initiatives such
ing 2020-2025.” lenges and the resurgence of the as the recently proposed grain insur-
COVID-19 pandemic.
Motor insurance is the second largest ance are expected to enhance the cov-
segment, accounting for 25.6% of the Deblina Mitra, Senior Insurance Ana- erage of agriculture insurance over the
general insurance industry’s gross writ- lyst at GlobalData, comments: “De- coming years.
ten premiums in 2020. After witness- spite being the second-largest general Overall, property insurance is expected
ing a 5.2% decline in 2020 due to insurance industry globally, China’s to grow by over 11% in 2021 and 2022.
lockdown restrictions, the segment is general insurance penetration at 1.3% Along with the growing insurance de-
expected to grow by 1.9% in 2021, is way below the developed markets’ mand from agriculture industry, insur-
driven by an increase in automobiles average of 4%. This is mainly because ance to cover large-scale ongoing
sales. It is expected to grow at a CAGR the general insurance industry’s projects – one-belt-one-road and re-
of 3.1% during 2020-2025. growth is disproportionately reliant on newable energy, will aid the growth.
motor insurance, which has been nega-
Non-life Personal Accident & Health Ms. Mitra concludes: “Growth in the
tively impacted by the regulatory re-
(PA&H) insurance accounted for 4.6% general insurance industry over the
strictions, economic as well as pan-
of the general insurance business in coming year will be hinged on its non-
2020. The segment declined by 17.5% demic related challenges in the recent motor lines of business as motor insur-
in 2020 owing to the drop in compul- years.” ers’ profitability will remain challenged
sory personal accident premiums dur- Motor insurance was the largest insur- with the stressed automobile sector
ing the pandemic. It is expected to ance line accounting for 60.7% share of battling supply chain issues, regulatory
grow at a CAGR of 3.3% during 2020- the general insurance DWP in 2020. It restrictions on premium pricing and
2025. recorded a flat growth of 0.7% in 2020 new pandemic outbreak.” T

18 The Insurance Times, December 2021