OLDWICK, N.J., Oct 31 (Bernama-BUSINESS WIRE) — The development of insurance markets in the member states of the Association of Southeast Asian Nations (ASEAN) has gone hand in hand with these countries’ economic growth and significant potential for future growth remains, according to a new AM Best report.
A new Best’s Special Report, titled, “ASEAN—Favorable Demographics and Development Boost Economic Growth,” states that economic development in the region has led to an increase in premium growth, and the momentum likely is to continue. Between 2008 and 2018, ASEAN total GDP, as a percentage of the world’s GDP, increased to 3.4% from 2.5%, and it is expected to grow to 3.8% by 2023. ASEAN has 10 member countries; however, the five largest economies among the 10 members—Indonesia, Malaysia, the Philippines, Singapore and Thailand—contribute 88% of ASEAN’s total GDP. Current trade uncertainty has been a headwind to growth, but accommodative monetary and fiscal policies have been able to mitigate the slowdown partially.