World’s leading specialist insurance market has released new research giving the insurance industry clear guidance on key developments in Asia
Feb 03, 2006 – The research, New Openings: Quantifying Opportunities In Asia, earmarks four specialist classes of business for growth: marine cargo, product liability, directors & officers (D&O) and professional indemnity (PI). Key findings include:
- marine cargo forecast to break the $1 billion barrier – Those interviewed predicted growth of 23 per cent in the marine cargo class. This would see regional premium grow from an estimated $940 million to $1.15 billion by 2007;
- 27 per cent growth expected in the product liability market – Product liability in Asia is developing quickly from a niche business class to one that represents a significant pool of premium income. The 27 per cent expected growth would see premium income grow to well over $250 million; and
- premium from D&O and PI to reach almost $400 million – Both of these classes of business are expected to have a quarter more premiums by 2007, reaching a regional total of almost $400 million.
It also reveals that the demand for insurance brokers in the region – which represents the world’s fastest growing economy – is set for a significant increase in the next two years. Almost a third of insurance companies seeking reinsurance and a fifth of insurance buyers in Asia expect to increase their use of brokers by the end of 2007.
Traditionally, insurance buyers have gone directly to insurers to get coverage. But today’s research shows that there is significant and growing demand for specialist services offered by commercial brokers.
Julian James, Lloyd’s Director, Worldwide Markets, said:
“A major part of Lloyd’s strategy going forward is to watch all developing economies throughout the world, and ensure that the market is ideally placed to offer its services and provide the right risk management solutions at the right time.
“Today’s research gives the Lloyd’s and London market some very clear guidance on shifting patterns in the Asian market.”
- The full findings can be seen at www.lloyds.com/research
- Lloyd’s joined forces with the British Chambers of Commerce to produce today’s report, which is based on interviews with more than 300 Asian insurers, brokers and clients. It assesses the health of the region’s insurance market and identifies specific business opportunities.
- It was carried out in nine territories in Asia: Singapore; Hong Kong; South Korea; Taiwan; Malaysia; Indonesia; Thailand; the Philippines; and Vietnam.
- Lloyd’s will carry out separate studies on China and India at a later date.
- The survey was carried out by ORC International with the support of Lloyd’s Asia. The resulting report was produced by Lloyd’s Worldwide Markets. The majority of the research costs were funded by the Department for Trade and Industry through a British Chambers of Commerce scheme.
- Lloyd’s presence in Asia has been growing steadily. Premium income from the region has doubled in the last five years to more than USD 2 billion. Lloyd’s premium income in the countries included in this study increased by two-thirds between 2000 and 2004 to USD 460 million.
- In November, Lloyd’s was given the go-ahead by the Chinese authorities to set up an onshore reinsurance operation in China. This further strengthened Lloyd’s links with the region and, long-term, will open up a range of new opportunities.
Lloyd’s is the world’s leading specialist insurance market with a capacity to accept insurance premiums of more than £13.7 billion in 2005. It occupies sixth place in terms of global reinsurance premium income, and is the second largest surplus lines insurer in the US. In 2005, 62 syndicates are underwriting insurance at Lloyd’s, covering all classes of business from more than 200 countries and territories worldwide. More about Lloyds at www.lloyds.com
Lloyd’s is regulated by the Financial Services Authority.