23-10-2019
Global:Several Asian markets feature highly on Aon's Country Opportunity Index
Insurance AlertssGlobal:Several Asian markets feature highly on Aon's Country Opportunity Index
Asian markets dominate the top positions in Aon's Country Opportunity Index that identifies the markets showing an attractive mix of growth and profitability with limited political risk.
For the fourth year in a row, Malaysia, Indonesia, and Singapore are ranked within the top five positions. All three of these countries have shown low combined ratios, healthy premium and GDP growth, and a stable political environment.
Hong Kong this year joined the top quartile, out of 50 top P&C markets in the world.
Aon’s Reinsurance Solutions business created the Country Opportunity Index which is published in the Insurance Risk Study. The 14th edition this year of the Study has the title, “Global Risk, Profitability and Growth Metrics”.
The table below displays the top property casualty markets ranked by this Index in the first quartile:
| Rank | Market | 5yr Cumulative Net Combined Ratio | 5yr Annualised Premium Growth | Real GDP 5yr Growth | Population 5yr Annualised Growth | Political Risk Assessment |
| 1 | Indonesia | 88.80% | 12.30% | 6.80% | 1.20% | Medium |
| 1 | New Zealand | 96.20% | 6.10% | 5.10% | 1.90% | Low |
| 3 | Malaysia | 87.70% | 3.30% | 6.90% | 1.40% | Medium Low |
| 4 | Mexico | 91.20% | 10.00% | 4.30% | 1.00% | Medium |
| 4 | Singapore | 80.60% | 1.40% | 5.00% | 0.90% | Low |
| 6 | Sweden | 92.20% | 4.10% | 4.50% | 1.20% | Low |
| 6 | Australia | 93.60% | 3.10% | 4.30% | 1.60% | Low |
| 8 | Luxembourg | 93.40% | 2.90% | 4.70% | 2.30% | Low |
| 8 | Saudi Arabia | 96.10% | 12.70% | 3.80% | 2.10% | Medium |
| 8 | Hong Kong | 91.10% | 5.30% | 4.50% | 0.70% | Medium |
| 8 | Finland | 90.90% | 3.80% | 3.10% | 0.40% | Low |
| 8 | Denmark | 91.20% | 2.30% | 3.60% | 0.60% | Low |
Source: Aon Insurance Risk Study 14th edition
The US (ranked 29), Japan (ranked 50), and most of Western Europe are in Quartiles 3 and 4. This Index suggests, “To achieve strong insurance growth, it is best for insurers to look beyond the developed economies”.
Globally, property casualty business again produced an underwriting profit in 2018 with a combined ratio of 98.9%, an increase over last year’s 98.8% combined ratio. Europe averaged a 96.0% combined ratio, while Asia Pacific averaged 100.8% and the Americas were 97.9%.
Source: Asia Insurance Review