The life insurance industry in the Brazil, Russia, India and China (BRIC) is expected to see robust growth over the next four years, according to a new report from UK-based research firm BRICdata.
The life insurance growth will be supported by various factors, including robust economic growth, favorable demographics, increasing disposable income and rising life expectancy, the report said.
During the forecast period 2011-2015, the Chinese and Indian life insurance markets are expected to more than double, while Brazil and Russia will also register strong growth rates.
The life insurance markets in the BRIC countries are expected to experience considerable growth, and each market will register a CAGR of about 10%.
The key growth driver for the Indian life insurance market will be the IRDA’s proposal to increase the limit on foreign direct investment from 26% to 49%.
Brazil’s life insurance market is concentrated and contains a few companies with very large market shares, the report said.
The individual life insurance category, rather than the group insurance category, dominates the respective life insurance markets of the BRIC countries in the review period.
The Russia’s life insurance market contributed just 2.2% of the total written premiums generated by the insurance industry in 2010, the BRICdata report said.
According to the report, Bancassurance, which will be a major growth driver for the life insurance markets in most emerging countries, is expected to increase its share of life insurance policy sales in Brazil and Russia.
The China’s insurance industry is expected to become larger than Japan’s by 2020, making it the second-largest insurance industry in the world, trailing only the US.
The full report ‘Life Insurance in BRIC Countries: Market Opportunities and Entry Strategies, Analyses and Forecasts to 2015’ is available from BRICdata. Click here for more details.