In our fifth and final MENA Insights interview, Chris Pleasant, Managing Director of Guy Carpenter, offers an upbeat vision of the future. While the current soft market presents challenges, it belies the greater re/insurance opportunity ahead. As local insurance markets mature and the approach to reinsurance buying becomes more sophisticated, MENA will enter the next chapter of growth.
Posts Tagged ‘emerging markets’
In our fourth MENA Insights interview Mahomed Akoob, managing director of Hannover Re Takaful, considers the huge potential of the Takaful and Retakaful market in the region, which he thinks could grow at a faster pace than Asia. Islamic finance is driving much of the demand for Shariah compliant insurance coverage to be taken out for major infrastructure projects.
In our third MENA Insights interview Fadi AbuNahl, chief executive of Trust Re, describes how the MENA re/insurance market has developed in recent years and what has prompted greater risk retention within the underlying market. He thinks there is plenty of reinsurance premium to go around but cautions against competing on price alone. Continue reading…
In our second MENA Insights interview, Michael Watson, chairman and chief executive of Canopius, talks about how the MENA region has all the right ingredients for a growth-minded reinsurer, reveals what he thinks of Lloyd’s decision to open an office in the DIFC and why Canopius is considering establishing its own presence in the region.
From our Chart Room, we review the increasing gap between GDP growth and reinsurance in the Asia Pacific region and the small proportion of losses that were insured in both the advanced and emerging economies.
Chart: Increasing Gap Between GDP Growth and Reinsurance Limit in Asia Pacific: The chart shows that growth in reinsurance catastrophe limit in the Asia Pacific region has clearly not kept pace with economic growth since 2006. Stronger rates of economic growth in such emerging markets mean the gap between economic and insured losses has the potential to increase further.
Chart: Economic and Insured Losses in Advanced and Emerging Economies: The chart shows how small a proportion of losses were insured in both advanced and emerging markets between 2002 and 2011.
The chart shows that growth in reinsurance catastrophe limit in the Asia Pacific region has clearly not kept pace with economic growth since 2006. Stronger rates of economic growth in such emerging markets mean the gap between economic and insured losses has the potential to increase further.
Here we bring together recent GC Capital Ideas stories that have focused on emerging markets.
Demand for Asia Pacific Catastrophe Reinsurance at a Record High in 2013: Total Asia Pacific catastrophe limit purchased in 2013 increased for the tenth year in a row, but once again failed to keep pace with strong gross domestic product growth in the region, according to a new report released today by Guy Carpenter.
Capital Stewardship Option: M&A - Grow/Diversify by Territory: With growth opportunities limited in mature markets, many insurers are looking to emerging markets for future expansion, in particular China, Southeast Asia and Central and Latin America.
Opportunities in Latin America: A Microscopic Look: While markets in some developed countries are demonstrating signs of recovery from the economic uncertainty of the last few years, and the growth in some developing markets is slowing, emerging countries remain attractive for insurance companies seeking opportunities for profitable growth. Latin America is an especially significant emerging region - it is rich in natural resources, geographically close to the United States and all of its governments are democratic. Before entering and engaging in business in this region, it is necessary for companies to be familiar with the economic environment, political situation, regulations, trends and risks that may be encountered.
With growth opportunities limited in mature markets, many insurers are looking to emerging markets for future expansion, in particular China, Southeast Asia and Central and Latin America. Figure F-10 highlights gross written premium (GWP) growth in emerging markets compared to developed markets from a 2003 base.