The global non-life insurance market is expected to surpass $2.71 trillion by 2020 as insurers unlock the potential of largely untapped markets, according to data from MarketLine.
The research firm forecasts the market to grow at a compounded annual rate (CAGR) of 5.9% between 2015 and 2020 – but there is also great scope for growth beyond that, said MarketLine analyst Nicholas Wyatt.
“Motor insurance is comfortably the market’s largest segment and there are a still a number of sizeable, largely untapped markets,” he explained.
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“In countries such as Indonesia and South Africa, car insurance is not a legal requirement and there is a chance that such jurisdictions could bring their legislation into line with that of other nations. This could serve as a catalyst for further market growth,” he added.
The global non-life insurance market has experienced “strong” growth in recent years, according to MarketLine figures. It posted a CAGR of 5.4% between 2011 and 2015 to reach a value of US$2.03trn, as market values have increased in all regions.
However, global growth was primarily driven by revenue increases in the US and China, which rank among the top three markets worldwide.
“Motor insurance is the biggest segment of the Chinese non-life insurance market, accounting for over 57% of its value. That segment has seen rapid growth year after year since third party cover became a legal requirement in 2006,” said Wyatt. “An increase in the number of cars on the road, along with some drivers opting for more expensive, comprehensive cover, has created a boom that shows no signs of stopping.”
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