Vast capacity for Asia reinsurance market to grow: Fitch
Monday, 08 31 2015, Category: Insurance and Reinsurance, Country: Asia
Asia’s reinsurance markets have the potential and scope for strong growth as risk-awareness and demand for reinsurance coverage spikes in the region, coupled with a significant protection gap and the region’s high exposure to losses from natural catastrophes, according to Fitch Ratings.
Asia has fast become one of the most rapidly developing economies in the world, with a rising middle class and burgeoning population driving intense urbanisation and a rise in asset values.
However, Asia is also home to some of the lowest insurance and reinsurance penetration levels globally ensuring that when catastrophe strikes, which it often does and is predicted to occur increasingly in coming years, those impacted by the event are at risk of losing their livelihoods and the growth of its economy can be halted, or drastically taken back.