Swiss Re Ltd., the world’s second- biggest reinsurer, estimates $43 trillion in infrastructure investments related to urbanization in emerging markets through 2030 may translate into $68 billion in premiums for insurance policies that cover construction risks.
Rising income and asset ownership generated by urbanization will increase growth in non-life personal lines, including motor and homeowner insurance, based on an expanding middle class and greater demand for services, according to a study published on the Zurich-based reinsurer’s website today. Better education could boost life insurance sales, the company said.
The world’s urban population will grow by 1.4 billion to 5 billion by 2030, with 90 percent of the increase coming in emerging markets such as China and India. This development and and expansion of production facilities will create demand for insurance, Swiss Re said.
“The main reinsurance and insurance opportunity will likely be in emerging Asia, where the urbanization rate is lower than in Latin America and in Central and Eastern Europe,” Swiss Re said in a statement. “China and India are expected to account for around half of emerging-market infrastructure-led commercial insurance opportunities.”
–Editors: Steve Bailey, Dylan Griffiths