Copying and distributing are prohibited without permission of the publisher
Tough competition awaits new arrivals to Asia
18 March 2010
Asian economies are recovering faster than their western counterparts, making Asia top of the list for western reinsurers looking to diversify.
The tiger economies of the East are not exactly roaring – but they are quietly purring again, compared to the uneasy uncertainty still felt in the West. That means the region is looking attractive to reinsurers desperate for growth and diversification.
A recent report from consultant Ernst & Young’s (E&Y) insurance specialists, Far East Insurance Outlook, January 2010, asserts that south-east Asia will continue to lead the global economic recovery in 2010. It has stronger GDP growth, though anticipated higher inflation, than any other region in the world. It is also highly diverse with respect to economic development and insurance penetration, E&Y says.
Compared with the saturated insurance markets struggling in the West’s stalled economies, Asia offers greater relative growth prospects to insurers and reinsurers: one reason why Prudential was so determined to acquire AIG’s Asian business, paying $35.5bn. Prudential said the combination will make it the top life...
You must be logged in to view this page. If you are already a registered user please log in. Alternatively, you can request a free trial or subscribe.