A new study from Swiss Re on Asia's insurance markets has said the outlook for Asia's non-life insurance business remains favourable.
The study said the markets in China and India were quickly gaining importance in the region.
Insurance premiums are said to have increased across the region with strong growth in most of the emerging markets. The report added that the SARS outbreak only temporarily dampened growth.
Weak stock markets in 2001 and 2002 were said to have taken their toll on insurers and Swiss Re said there was a need to focus on underwriting quality.
The non-life insurance market is expected to see further consolidation as deregulation and the decline of state ownership continues which, according to Swiss Re's findings, will lead to more concentrated and polarised markets.
Foreign insurers are expected to play a larger role in the development of Asia's insurance markets over the medium to longer term, despite recent reticence in business expansion, said the report.
