Trade liberalisation is creating new opportunities in southeast Asia, but insurers should beware regulatory differences, according to an Ernst & Young global outlook report.

Twelve new private insurers begin their first full year of operations in Myanmar this year, and large multinationals are setting up base.

European insurers have also established a presence in Cambodia following the nation’s move to permit foreign entry.

“Insurers are advised to carefully consider their strategic rationale for entering new markets because it is likely to take considerable effort and time for operations to grow and become profitable,” the report says.

The more developed regional economies of Singapore, Malaysia, Indonesia and Thailand are forecast to continue attracting insurer interest, while rising Asia-Pacific affluence is increasing demand for auto cover and travel insurance.

Concerns for insurers across most global regions this year include slow economic growth, lingering low interest rates and regulatory pressures.

In the UK, Ernst & Young predicts intense price competition from motor aggregators will limit insurers’ ability to raise rates on the margin-challenged line.

“Additional pressure for UK personal lines insurers will come from new caps on household flood insurance premiums for flood-prone areas, along with an industry levy, exacerbating falling home insurance rates.”

In the US, the report suggests companies that improve data management, including security measures and use of analytics, will outperform rivals.

Pressures include consumers’ increasing empowerment and expectations, the stricter regulatory environment and the rising frequency and volatility of catastrophes.

Emerging coverage areas include cyber-risk and the increasing use of sensor and nano-technology, the report says.

Latin American premiums are forecast to continue rising at double-digit pace.