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Emerging markets show premium growth above 11%

General insurance premiums in emerging markets grew by more than 11% last year, a Swiss Re study has revealed.

Premium volume amounted to $US199 billion ($307 billion), with particularly strong growth in South and East Asia, Eastern Europe and the Middle East.

The author of Swiss Re’s latest Sigma study, Daniel Staib, says motor and property insurance dominated emerging markets for insurance “with motor insurance outperforming the non-life market as a whole”.

Emerging market premium growth is expected to grow at a slower place for the next 12 months, but long-term growth prospects remain positive.

The study forecasts general insurance premium growth of between 3-8% during the next five years.

The market for Islamic “takaful” insurance is expected to grow rapidly, after recording about $US1.7 billion ($2.6 billion) in written premium last year. That market is projected to reach $US7 billion ($10.75 billion) by 2015 due in part to excellent prospects in Saudi Arabia and Malaysia.

Mr Staib says emerging market trends include more stringent capital regulations, an expansion in micro-insurance, and an expansion in bancassurance distribution channels.