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The Asian insurance industry is an area of the economy that has seen much growth in recent years. The insurance sector was hit hard by the Asian financial crisis of 1997-98, however in 2005 it seems set to Global insurance premiums totaled $107bn in 2003 of which Asia accounted for only $9.5bn (including In 2004 insurers saw improved underwriting results which allowed for a stronger financial positions. Despite improved results the insurance sector also saw increased natural catastrophes resulting in a 2-3% loss of global product and casualty insurance capacity ($25bn). These events and an increase in regional wealth China which is expected to grow by 9.3% (This figure has been adjusted to account for on-going macroeconomic tightening in China and stabilization of car insurance prices) in 2005 will be a driving force behind growth in the Asian insurance sector. Life insurance premiums in China are expected to grow by The Asian insurance sector presents much opportunity, but it is not without risks. The recent SARs epidemic and the terrorist attacks in Bali and throughout the area highlight just some of the concerns for players contemplating entering the Asian risk management markets. The Asian insurance sector has a bright future ahead, however institutions will be unsuccessful in tapping market potential without a prudent and well-informed strategy. |
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