Majority of global insurers plan international expansion

Nearly two-thirds of insurers have plans to grow outside their home market over the next year despite the global economy, according to an Accenture survey of 104 life and property insurance companies around the world.
Three-quarters of the respondents believe the current economic and financial turmoil will offer more opportunities for growth outside their home market over the next three years, according to Accenture.
“Spreading risks and balancing business cycles” was cited by 77% of respondents as a driver of anticipated international expansion.
“Managing costs more efficiently” was a driver for 74% of respondents.
Eighty-four per cent of insurers in industrialized countries and 92% of insurers from emerging economies said that when they considered expanding beyond their home markets, moving into an emerging market would be a key priority.
Respondents most often said they expect to invest in Brazil, Russia, India and China over the next three years, followed by 43% of respondents noting an interest in investing in Asian countries. Thirty-six per cent cited an interest in Western Europe.
“Stock-market volatility, changing consumer-buying behaviors and the economic situation are increasing competition and the challenges to achieving profitable growth,” Serge Callet, managing director of Accenture’s insurance practice, said in a release.  “Having already maximized their domestic footprints, carriers are looking to emerging markets, where premium growth is significantly higher because of catch-up dynamics.”