China to become the largest insurance market by the mid-2030s
The study explores how the seven largest emerging markets will contribute more than 40% of global growth in the next decade, with China accounting for over a quarter of the global output.
The report also examines the factors that will drive insurance premium volume growth in emerging markets over the next 10 years.
In this period, emerging market premiums are forecast to more than double, outpacing growth in advanced markets by four times.
The growth rate in emerging Asia is forecast to be three times the world average over the next two years and China remains on course to be the biggest insurance market by the mid-2030s. Growth in the Latin America and Central and Eastern Europe insurance markets is also projected to accelerate. This will be spurred by factors such as growth-enabling regulation, the adoption of technology, ongoing urbanisation, and a push for financial inclusion.
"Emerging markets will continue to outperform advanced markets in terms of growth in the next 10 years," says Swiss Re Group Chief Economist Jerome Jean Haegeli.
"The shift in economic power from west to east will continue. As this happens, the quality rather than speed of growth becomes the differentiating factor in emerging markets. At the same time, insurance markets will continue to grow at a strong pace, and China is forecast to become the largest insurance market by the mid-2030s."