China to be most dynamic insurance market

China will be the country with the biggest increase of primary insurance premiums worldwide until 2020, a study published by the world’s largest reinsurance company said.

Followed China on the Munich Re list was the United States and Japan.

Premium income for the insurance industry in the Asia-Pacific region will double by 2020, according to the study.

Five of the top 10 expected global primary-insurance growth markets will be in the Asia-Pacific region, both in property and casualty insurance and in life insurance.

Rising consumer savings are fuelling demand for life and health insurance, the Munich Re study showed.

According to a report by Swiss Re, health insurance was the fastest-growing sector in China’s life insurance sector last year, and the trend will continue this year.

Anna Zhao, manager with Healthcare & Life Sciences China under the UK trade and investment section of the British embassy, said that now is the best time for foreign institutions to invest in China’s healthcare industry, including health insurance.

A summit focusing on international healthcare and health insurance will be held during the Beijing Fair, which is scheduled to open on May 28. A number of foreign insurance companies have confirmed their attendance.

On the marketing channel side, bancassurance still dominated the market, especially for middle-sized insurers, according to a report by Deloitte.

Shin Kong-HNA Life insurance; for instance, saw 78 percent of its premium income coming from bancassurance, the biggest driver for its 373.4 percent premium growth last year.

The biggest advantage of the bancassurance, industry insiders said, is the comparatively low cost when expanding rapidly.

In emerging Asia, P/C primary insurance premiums currently grow an average of 11 percent annually. This is twice as high as the second-placed region, Eastern Europe.

“China, India and Indonesia will be the top three growth countries in P/C, with an average growth of above 12 percent over the forecast period (2012-2020) in China and India, and almost 10 percent in Indonesia,” Munich Re Chief Economist Michael Menhart said.