Sparke Helmore, member of Global Insurance Law Connect (GILC), has launched the network’s latest thought-leadership report, Spotlight on Emerging Markets.
The report provides a comparison of four emerging markets – Brazil, China, India, and Mexico – to give insurers a reference tool on how different countries have tackled growth opportunities, complexities, as well as the common themes around regulation and economic issues.
“As growth within the mature insurance markets stagnates – and I would include Australia in this bucket – carriers and brokers are looking for opportunities for growth in emerging economies,” said Chris Wood, Sparke Helmore national practice group leader for commercial insurance. “And when you consider that these economies include global giants China and India, you can see how important the ‘emerging’ players are for insurers… These markets are growing rapidly, which make them exciting places to work and invest, but sometimes also higher risk. Each emerging market has its own complexities, its own legal structures, and often a distinct approach by its own government, which must be understood when considering growth aspects and possibilities for entering the market.”
Gillian Davidson, partner for commercial insurance at Sparke Helmore and GILC board representative for Asia-Pacific, said it’s hard for Australian insurers to ignore Asia-Pacific given that the region is home to nearly a third of the world’s population.
“China is the second largest insurance industry in the world with two of the world’s five largest insurers,” Davidson said. “And although the insurance market is booming in China, foreign-funded insurance companies still face some obstacles. And with India, you have a vast under-insured nation. You also have a government that is about to implement a second wave of reforms in the insurance sector, with an agenda to increase foreign participation. The opportunities are endless for insurers willing to go on something of a wild ride.”
Visit the GILC website to access the full report.
