They’re looking to tap into countries like Vietnam and Indonesia.
With insurers looking to spread earnings risk by balancing its presence across several markets, emerging Asia is the top choice for insurers thanks to its large growth potential and relatively untapped insurance markets, according to Willis Tower Watson’s report on M&A trends in the insurance sector.
Emerging Markets Asia countries include China, India, Indonesia, Korea, Malaysia, Pakistan, Philippines, Taiwan and Thailand.
Whilst only 5% of insurers generate half of their profits from non-domestic markets, 15% expect to do so three years from now, Willis Tower Watson adds.
Almost half (40%) of insurers plan to direct their acquisition strategies towards emerging Asia whilst 37% plan to focus on North America.
Countries like Indonesia and Vietnam remain highly attractive for insurers thanks to favorable economic conditions and a growing middle class population.
Only 18% plan to direct their efforts to more mature economies in Western Europe.
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