Resilience of Asia-Pacific economies continues to draw global reinsurers
Fri 11 Nov 2011
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Global reinsurers confident about Asia-Pacific opportunities
SINGAPORE – Global reinsurers are confident about opportunities in the Asia-Pacific region and the prospects for further economic growth, according to a new survey from Lloyd’s, the world’s specialist insurance market.
Leading industry figures were asked about the greatest attractions for global business in the region. A significant majority (61%) cited continued economic growth as the key reason for them doing business there. The large population of the region (17%), its supportive regulation (9%), and the strength of its infrastructure (8%) were other assets named.
Overall, 95% of those asked said that they were either ‘confident’ or ‘very confident’ doing business in the region. This is despite issues identified as key barriers to expansion there such as increasing regulation (19%), political instability (17%) and access to expertise and knowledge (16%).
Recent forecasts from the International Monetary Fund predict economic growth in the Asia Pacific region of 8.2% in 2011 and 8.0% in 2012, with levels in China expected to reach 9.5%. It comes as no surprise therefore that 61% of respondents named the booming Chinese economy as the biggest driver of the growth in the region, with India (19%), Indonesia (5%), Singapore (5%) and Malaysia (3%) completing the top five.
Kent Chaplin, Managing Director of Lloyd’s Asia, said:
“Given the strong growth forecast for Asia-Pacific, particularly China, Indonesia and Singapore, it is no surprise that the region’s buoyant economies are a magnet for global business. The global reinsurance industry has given the region an overwhelming vote of confidence, the reason for which is deeply rooted in those growth prospects.
“Lloyd’s has made a long-term commitment to the Asian market as we believe it is crucial to our development this century.”
Lloyd’s has experienced tremendous growth since it established a regional base in Singapore in 2000. Lloyd’s Asia now has 18 Service Companies and employs more than 250 people; more than 30 lines of business are now offered; and premium level growth averages 70% a year. In September 2011, Lloyd’s began offering insurance in China, one of the world’s fastest growing insurance markets.
View the charts of the survey results
Notes to Editors:
1. Over 270 industry figures participated in Lloyd’s survey at the Singapore International Reinsurance Conference (SIRC) at the start of November – giving their views on what they saw as the challenges and opportunities for the insurance and reinsurance industry in the Asian markets, and their general confidence in doing business in the region.
For further information, please contact:
Sarah Robson
Tel: +44 (0)20 7327 6125 Fax: +44 (0)20 7327 5229 Email: sarah.robson@lloyds.com
Tom Foxton
Tel: +44 (0)20 7327 5514 Fax: +44 (0)20 7327 5229 Email: tom.foxton@lloyds.com
About Lloyd’s
Lloyd's is the world's specialist insurance market and occupies fifth place in terms of global reinsurance premium income, and is the second largest surplus lines insurer in the US. In 2011, 88 syndicates are underwriting insurance at Lloyd's, covering all classes of business from more than 200 countries and territories worldwide. Lloyd's is regulated by the Financial Services Authority.
