Insurance in the frontier markets Žouth ‘sia: ‰anadesh… ƒakistan and Žri ›anka ˆhere are ¡¢0 miion eoe in ‰anadesh… ƒakistan and Žri ›anka are home to ¡¢0 miion eoe‡ ˆhey are ‰anadesh… ƒakistan and Žri ›anka‡ midde†ow income markets… with hihest er caita income in Žri ›anka at more than ¥Ž‚ ¡600 in 201™„‡¡1 Economic rowth has remained fairy ro ust in the ast decade… averain at around 6 in Žri ›anka and ‰anadesh… and 4 in ƒakistan‡ Figure 1‘ ‰anadesh… ƒakistan and Žri ›anka Pakistan Sri Lanka Bangladesh Žource: Žwiss ‹e‡ Table ˆ ±ey economic and insurance indicators of Žri ›anka… ƒakistan and ‰anadesh… 201™ €‚ƒ… €‚ƒ er caita… €‚ƒ rowth ƒouation… Non†ife enetration… ›ife enetration… ˆota enetration… ¥Ž‚ iion ¥Ž‚ 2016–2020—„ miion in of €‚ƒ in of €‚ƒ in of €‚ƒ ‰anadesh 1’1 11’ 6‡2 161‡0 0‡1’ 0‡™¡ 0‡¢2 ƒakistan 26™ 1400 ™‡™ 1‡’ 0‡2¢ 0‡™4 0‡2 Žri ›anka ¢ ¡62¡ 6‡™ 21‡6 0‡™ 0‡4 1‡06 Žource: ”xford Economics… Žwiss ‹e Economic ‹esearch Ÿ Œonsutin‡ conomic deeloment ˆheir economies have erformed we ˆhe near†term economic outook for these countries is uncertain iven the sowdown in the ast decade … in Œhina… the current stron E Nino affectin aricutura outut… and financia voatiity foowin the first ¥Ž interest rate rise in ‚ecem er 201™‡ —or instance… weakenin exorts and a sowdown in remittances ed to a dou in of Žri ›anka’s current account deficit in the first haf of 201™ from the revious year‡ £owever… these markets have aso enefited from the shift of manufacturin roduction from Œhina to other… incudin these… ower†cost ocations‡ … ut now face headwinds‡ ”ver the oner term… ‰anadesh has the otentia to achieve hih rowth… assumin numerous structura issues are resoved‡ ˆo this aim… the overnment is taretin a 2’‡™ increase in tax revenue in 201™/16 to imrove fisca sustaina iity‡ ˆhe medium†term outook for ƒakistan deends on structura and economic reform aso… ut needs oitica sta iity and an imrovin security situation‡ ‰usiness and consumer confidence must e ostered to foster rivate investment‡ Žuort from mutiatera aencies ike the I˜— and ‘sia ‚eveoment ‰ank aon with access to the internationa caita markets wi he‡ Žri ›anka… meanwhie… has enefitted from the eace dividend and oitica sta iity since the end of the civi war in 200’‡ ˆhe economy achieved averae annua rowth of ¢‡¡ etween 2010 and 2014‡ £owever… sowin exorts and risin fisca deficits are current chaenes‡ 31 —or the current 2016 fisca year… the ¦ord ‰ank defines midde†income economies as those with ross nationa income €NI„ er caita of more than ¥Ž‚ 104™ ut ess than ¥Ž‚ 12 ¢¡6‡ 22 Swiss Re sigma No 2/2016
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