The global insurance industry risk vs opportunity matrix chart

Where are Insurance companies looking to Invest across the world ? The below report plays out the contrasting studies on the most risky markets that might give unprecedented growth versus the safest countries which might give just predictable business The charts shows a country matrix based on the nations 5 factors which classify them as being the most risky, medium and hottest markets for Insurance and the nations have the most potential in increasing insurance penetration across the world.

GLOBAL INSURANCE MARKETS MATRIX

For most of the past decade, insurance companies focused on investing across BRICS market which was a simple strategy for insurance companies seeking to expand their business in RGMs.

According to recent forecasts from Oxford Economics, the average growth rate of real GDP in the BRICs was 4.3% in 2012, and that rate is expected to rebound only modestly, to about 5.6%, between now and 2018. Growth in other RGMs will be affected by this deceleration.

The above matrix is based on majorly 5 metrics on which future global insurance growth depends . 1) Insurance Premium Growth 2) Regulatory Changes in a market 3) Macroeconomic volatility and stability ( negative vs positive) 4) Average age of younger demographic ( percentage of people in the nation in the age group 20 to 55) 5)Liquidity Risk; lack of liquidity makes the market unstable keeping away its population 6) Corruption index : Risk in the level of corruption The ranking matrix developed are based on an analysis of their potential risk and opportunity. It is designed to help insurance executives weigh the opportunities against the risks of doing business in individual economies.