Insurers will target emerging markets for expansion
Insurers intend to expand into emerging markets such as Brazil, Russia, India and China, and Asia generally, two global surveys due to be released this week, with say, the FT reports.
A KPMG and Economist Intelligence Unit survey of insurance executives from 49 countries found 55% expect organic growth, while 53% expect to grow through acquisition during the next 12 months.
An Accenture survey of 104 companies found that three-quarters think the current economic and financial turmoil will offer more opportunities to grow outside of their home market in the next three years.
Frank Ellenbuerger, head of KPMG’s Global Insurance practice, said: “The insurance industry has not been so deeply affected by current economic conditions and so executives within it are perhaps more optimistic about their prospects for the coming year than those in other financial services sectors. However, executives do still foresee a continuing lack of confidence in the capital markets as stifling to their recovery.”
Serge Callet, global managing director of Accenture’s insurance practice, said: “Given the strategic importance of profitable international expansion, insurers will drive and prioritise investment on this business opportunity.”
