New data from data and analytics company GlobalData has projected that liability insurance in the Asia-Pacific region will grow to become a $61.7 billion industry by 2027, in terms of written premiums.
In the report, titled “Liability Insurance Market Trends And Analysis By Region, Line Of Business, Competitive Landscape And Forecast To 2027,” the liability insurance industry is projected to grow at a compound annual growth rate (CAGR) of 11.8% in the period of 2023–2027, supported by economic growth in the top markets and improved product offerings.
China, Australia, and Japan are the countries that predominantly make up the liability insurance industry in the APAC region at present, having a share of 48.2%, 19.6%, and 18.8% in the market, respectively. They have been included in the top countries to contribute to this project growth over the next five years.
"APAC liability insurance growth is expected to outpace the global growth over 2023-27, driven by prudential underwriting practices, new regulatory developments, and digitalization that have increased the demand for cyber insurance,” said Prasanth Katam, insurance analyst at GlobalData.
The availability of cyber insurance has been seen as a top potential contributor to the projected growth with the commercial sector gaining an interest in the utilization of Internet of Things (IoT) devices.
China is seen to remain as a primary contributor to the growth as the Chinese economy is expected to drive a greater demand following the pandemic. The report has projected China’s liability insurance premiums to grow at a CAGR of 14.5% in the period of 2023-2027.
Australia, likewise, has been projected to continue being a top contributor to the growth of the industry, with the report forecasting the industry to grow in the country at a CAGR of 11.3% over the same period analyzed. It noted the improvement of underwriting conditions for incumbents in 2023 will support the growth over the next five years.
Singapore made it to the top five list of countries with big potentials to become main contributors to the projected growth of the industry. Liability written premiums in the country are expected to grow at a CAGR of 7.3% over the period of 2023-2027.
"An improved economy, digitalization, and growing awareness of the importance of risk management by businesses and individuals are expected to support the demand for liability insurance in the APAC region over the next five years,” said Katam.
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