JP Morgan: Asia’s insurance industry to witness “really attractive” growth

The growth potential of the insurance industry in the Asian region has been reviewed by Alexander Treves who happens to be the J.P. Morgan Asset Management official. He told CNBC that the insurance sector is ready to witness “really attractive” growth in the upcoming decade as the consumer segment is expected to grow wealthier in this time span.

Asian markets including South East Asia and India present a wide spectrum of opportunities in the insurance sector. According to J.P. Morgan’s administrator, Treves, these markets are pretty “underpenetrated” and needed to be explored.

“In the upcoming decade, people would be more interested in spending their money on insuring, in addition to basic necessities as they get richer and prosperous,” said Treves, who handles the investment analysis trends in emerging marketplaces at J.P. Morgan. In addition to this, Treves told that people coming from a low-income nation will shift from a no insurance pattern to something at the margin which will lead to a slow long growth trajectory spanning continuation over years.

Treves’s review was supported by a report published by Bain & Company earlier this year which indicated an upswing in demand for health insurance due to a rise in the ageing population in several regions of Asia Pacific.