China and India have biggest non-life insurance potential: Mapfre

China and India are the markets with most growth potential for closing the protection gap in non-life insurance, according to analysis carried out by Spanish insurer Mapfre.

Mapfre has examined the insurance protection gap worldwide and analysed where the gaps are most likely to be closed.

The Insurance Protection Gap (IPG) represents the difference between the insurance coverage that is economically necessary and beneficial to society and the amount of coverage which is actually acquired.

Mapfre’s Global Insurance Protection Index provides a score to put markets in order on the basis of their potential contribution to closing the global insurance gap. In order to be highly placed in the ranking, markets therefore need to be large in size (measured in terms of their GDP) and also need to have adequate capacity to close their own IPG.

The total global insurance gap (life and no-life), calculated using figures from 2018, stood at $5.9 trillion, equivalent to 685 basis points (bps) of the global GDP. This is distributed into approximately two thirds for the IPG in the Life insurance segment and one third for the IPG in the Non-Life segment

Within the non-life line, Pakistan, Egypt, Bangladesh, Nigeria, and the Philippines have been identified as countries with huge potential.

However, the size of certain markets boosts their scores. In non-life, the top five slots go to China, India, the United States, Indonesia, and Japan respectively. The next five after that are Russia, Germany, Brazil, Turkey, and Mexico.

Mapfre notes that three has been little movement in the top 10 from the previous year.

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