Having worked in imports and exports for some time, I had to trade with many markets world wide. I learned that the exports of direct insurance were blocked by national regulatory barriers in many markets. Some markets have undergone gradual relaxation, permitting greater flexibility in cross-border activity.
Many markets, such as Hong Kong, have a population that is covered by insurance. There are still a large number of uninsured. Do check in your market what are the percentages of insured or uninsured? Do check also the living standards of your market, and the level of awareness that insurance provides, as there may just be a sizable market to be explored.
This by no means gives you a complete picture of your market's potential. It serves as a good starting point to look into the potential of the market, and point you in the direction of other areas. Requirements from each market and each region vary considerably, so do apply my suggestions to the specific needs of your market. Good luck. I look forward to hear from you.
What about the insurance market that caters to natural disasters? Is the area that you are operating at subjected to typhoons? What about destructive earthquakes? This might provide great potential and increased demand for catastrophe reinsurance.
How many authorized insurers are there in the market? How many are local insurers? How many are insurers that are incorporated in overseas markets? Which are the major overseas insurers?
How many registered insurance agents are there operating in the market? How many are individual agents? How many registered insurance brokers are there?
How many specialize in general insurance? How many specialize in life insurance? How many cover both general insurance and life insurance? How many professional reinsurers are there in the market, providing reinsurance only? Of this, how many are incorporated locally, and how many overseas?
Some areas that you might look into:
What is the total value in exports of insurance services? Has it increased or declined in recent years? Is reinsurance a major export earner? What is the amount in reinsurance? What is the amount in direct insurance?
Is the government in the market keen to promote insurance and reinsurance? What about captive insurance? Captive insurance is formed by a group of companies such as multinationals or conglomerates, catering for specific insurance needs of the group.
Have you explored the China market? It is a huge market with very large potential for growth, with substantial growth in premium income, expected to register continued growth.
Have you looked at the reinsurance needs for the region you are operating at? Are there any large infrastructure projects that might need substantial insurance and reinsurance?
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