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Govt Support Measures Increase Insurance Penetration – Swiss Re

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Emerging offers “great opportunities” for Australian insurers, according to .

The reinsurer’s annual insurance outlook says global economic growth will give the insurance sector a much-needed shot in the arm.

Australia has been affected by the slowdown in China and associated fall in commodity prices, and growth is subdued.

But emerging is set to boom, and Chief Economist Kurt Karl said Australian insurers can benefit.

“The overseas strategies of top Australian players are diverse,” he said.

growth in emerging Asia is expected to remain robust due to market liberalisation and other support measures to increase insurance penetration.

“In our view, emerging Asia offers great opportunities for Australian insurers to improve their premium growth.”

Dr Karl says double-digit premium growth is projected for China in this financial year, and relaxing of insurance regulations will boost growth in India.

Indonesia, the Philippines and Vietnam are also expected to sustain robust growth.

“The huge protection gap in the region also provides opportunities for insurers,” Dr Karl said.

“In our latest study, the property protection gap in emerging Asia is $US48 billion ($66.7 billion).”

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