Global insurance companies are increasingly exploring expansion opportunities in rapid-growth markets such as Mexico, Thailand, Colombia and Indonesia, according to consultants Ernst & Young.

China continues to play a dominant role in driving premium growth in international markets, but “new emergers” also offer valuable long-term opportunities, it says in a report.

Ernst & Young Global Insurance Leader Shaun Crawford says rapid-growth markets’ overall contribution to insurance premium growth will continue to be significant.

“Some of the larger economies such as Brazil, Russia, India and China appear to have entered a period of slower growth, but they continue to possess high long-term potential.

“And new waves of market liberalisation and rapid consumer adoption of new technologies are opening additional markets such as Mexico and Thailand to non-domestic firms.

“However, each market has its own distinct risk profile. Insurers will need to model the risks across all the geographies to clearly evaluate drivers for growth and pick their targets carefully.”

The report includes a risk-opportunity matrix that ranks 21 rapid-growth markets on their future prospects – based on projected economic and premium growth until 2020, financial stability, regulatory change, macroeconomic volatility and liquidity risk.

It suggests China, Mexico and Thailand offer the best risk-versus-opportunity potential for insurers up to 2020.