Swiss Re sees emerging market countries to boost premiums

By 2030, the world's urban population will be 1.4 billion larger, with China and India at the forefront of the urbanisation wave

November 05, 2013 11:49 IST | India Infoline News Service
The world's urban population is forecast to grow by about 1.4 billion to 5 billion between 2011 and 2030, with 90% of the increase coming in the emerging markets.

Swiss Re's latest sigma study Urbanisation in emerging markets: boon and bane for insurers reviews the rapid growth of towns and cities in emerging markets. It also addresses the opportunities and challenges that urbanisation presents with respect to risk management for insurers and governments alike.

Rising incomes, increased asset ownership, infrastructure investments and further industrialisation will benefit non-life insurance.

China and India at the forefront of urbanisation wave 

Asia and Africa will see the biggest rise in urbanisation rates in the coming decades, as well as in urban populations.

"It's estimated that China will account for 20%, that's 276 million people, and India for 16% or 218 million people, of the increase in the global urban population between 2011 and 2030," says Amit Kalra, co-author of the sigma report.

A prominent feature of the urbanisation will be rapid growth of small and mid-sized cities alongside ongoing development of urban clusters. The number of 'megacities' – those with more than 10 million inhabitants – in the world will rise to 37 from 23 in the same period. Nineteen of these will be in emerging markets, with 13 in China and India combined.

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