19 February 2024 2 min read

🔍 Macroeconomic Specificities of the emerging markets

Reinsurance Tutorials #12 - Season 3

Hi everybody 👋


Today, and for the twelfth Reinsurance Tutorials video of the season, we will talk about "Macroeconomic Spécificities of the emerging markets"


This subject will be addressed by CCR Re experts José Luis Campos and Hoang Anh Nguyen.


Let’s start! 


[Hoang Anh Nguyen] : Good morning, my name is Anh Nguyen. I am an Underwriter from Cambodia, Philippines, Laos & Vietnam, P&C.


[José Luis Campos] : Hello Hello. I am José Luis Campos, Vice President Life & Health Latin America. Thank you for joining me for this presentation on the macroeconomic specificities of emerging insurance markets.

As a reinsurer, we understand the challenges and opportunities that arise in these markets.
Today, I would like to focus on four key areas: growth, inflation and monetary instability, political and economic instability, and opportunities.

[Hoang Anh Nguyen] : First, let's talk about growth. Emerging markets are known for their high growth rates, which can be both a blessing and a curse for the insurance industry. On one hand, rapid economic growth means that more people are entering the middle class and have disposable income to spend on insurance products. On the other hand, it can be challenging for insurers to keep up with the pace of growth and ensure that they have the capacity to meet their customers’ needs.

[José Luis] : Next, let's talk about inflation and monetary instability. Many emerging markets struggle with high inflation rates and currency devaluations, which can have a significant impact on the insurance industry. High inflation rates can lead to higher insurance premiums, which can make it more difficult for insurers to attract and retain customers. Similarly, currency devaluations can make it more expensive for insurers to settle claims, which can impact their profitability.

[Hoang Anh] : Third, let's talk about political and economic instability. Emerging markets can be subject to political and economic upheaval, which can create challenges for the insurance industry. For example, civil unrest, terrorism, and other types of violence can lead to increased claims and insurance premiums. Similarly, changes in government policies or regulations can have a significant impact on the insurance industry and make it more difficult for insurers to do business.


Finally, let's look at the opportunities that emerging markets represent for the insurance industry. As I mentioned earlier, the high growth rates in these markets can lead to a growing middle class and increased demand for insurance products. In addition, emerging markets often have unique risks and needs that can create opportunities for insurers to develop new products and services. For example, insurers may be able to offer products that are specifically tailored to the needs of small and medium-sized enterprises in emerging markets.


[José Luis] : In conclusion, the macroeconomic specificities of emerging markets present both challenges and opportunities for the insurance industry. While rapid economic growth, inflation and monetary instability, political and economic instability can be obstacles, there are also opportunities to expand and develop new products and services that meet the unique needs of these markets.

Thank you for your attention, and I hope this presentation has given you a better understanding of the macroeconomic specificities of emerging insurance markets.


[Hoang Anh] : Thanks a lot for watching this video, and goodbye.





Bye for now 👋

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