Global insurance premiums will top nearly $US5 trillion ($5.5 trillion) this year, driven by emerging economies in Asia and stabilising western markets.

New research by Global Industry Analysts (GIA) shows the appetite for insurance in China and India is growing, despite penetration well below western standards.

Liberalising economies and subsequent wealth creation are providing opportunities for insurers in developing nations, with non-life insurance predicted to grow by 13% a year across Asia, GIA says.

Premiums per capita in India are just $US5 ($5.50), compared with Hong Kong at $US580 ($639), while property and casualty premium as a percentage of GDP in Asia is between 0.6% and 3%.

“The vast size of the uninsured and underinsured population also presents a powerful business opportunity for insurance companies worldwide,” it said in a statement.

“China and India, which together account for about a third of global population, contribute just about 3% to global insurance premiums.”