Insurance industry leaders have significant concerns about the effects of inappropriate regulation and are planning to grow in Asia, according to the latest survey conducted by global insurance industry think tank The Geneva Association.

The survey polled more than 40 insurance CEOs, 70% of whom see Asia as a very important source of growth over the next year while 46% see South America in the same light.

The macroeconomic environment is a major concern, with 75% citing the Eurozone crisis as a significant challenge to the implementation of the business strategies and 73% saying too much or inappropriate regulation is another major barrier.

Despite this, 59% of CEOs surveyed expect their profitability to increase in the next year and more than half expect dividends to remain stable.

There is some optimism for the economics of the industry, with 56% expecting insurance rates to harden in the year ahead and 92% expecting insurance capacity to remain stable or increase.

Investment returns are a concern, with most CEOs expecting falls in equity markets, stable fixed income markets and rising inflation.

There is risk seen in the possibility governments will implement politically motivated legislation that does not recognise the difference between insurance and banking.

“The insurance industry supports the ongoing regulatory initiatives undertaken by the G20,” Geneva Association Secretary-General John Fitzpatrick said. “We believe that the development and promotion of effective supervisory and regulatory policies to reduce systemic risk and address information gaps is to everyone’s benefit.

“However, banking and insurance have very different business models and very separate roles in society and the world economy, so they must be regulated differently.”