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Big insurers look to emerging markets

The growth potential of emerging world markets will entice 62% of leading life and general insurance companies to expand offshore in the next 12 months, according to a new international survey by global consulting firm Accenture.

Some 75% of the 104 respondents – including six Australians – say the current financial turmoil will offer more opportunities to grow outside their home market in the next three years.

The most common reasons for this were “spreading risks and balancing business cycles” (77%) and “managing costs more efficiently” (74%).

The highly populated emerging markets of the so-called BRIC countries – Brazil, Russia, India and China – topped the list of target investment regions at 46%, followed by other Asian countries (43%) and Western Europe (36%).

Within the BRIC nations, China is cited most frequently, followed by Brazil, India and Russia.

Accenture insurance practice MD Serge Callet says sound expansion strategies will make the difference for insurers looking at emerging markets.

“Insurers will need to accelerate product innovation, drive new levels of operational efficiency and increase the simplification and standardisation of their internal operations across entire regions,” he said.