Asia - Q1 2013


Insurance Risk/Reward Ratings

Table: New Zealand's Insurance Risk/Reward Rating
Data Sub-rating score, out of 10 Rating score, out of 100
Rewards 59.33
Industry rewards 43.75
-Of which non-life 47.5
Non-life premiums, 2012, US$mn3,122.24.0
Non-life premium increase, 2012-2016, US$mn341.33.0
Non-life penetration, 2012,%2.04.0
Measure of openness8.08.0
-Life 40.0
Life premiums, 2012, US$mn1534.83.0
Life premium increase, 2012-2016, US$mn408.33.0
Life penetration, 2012,%1.02.0
Measure of openness8.08.0
Country rewards 82.7
GDP per capita, 2012, US$35,245.29.0
Active population, 2012, % of total#N/A7.0
Tax regime84.18.4
GDP volatility1.39.0
Financial infrastructure79.57.9
Risks 88.5
Regulatory framework 90.0
Regulatory framework and development10.010.0
Regulatory framework and competitive landscape8.08.0
Country risks 87.5
Long-term financial risk96.79.7
Long-term external risk73.37.3
Long-term policy continuity80.08.0
Legal framework92.79.3
Bureaucracy94.69.5
Insurance Risk/Reward Rating 67.0
Source: BMI

The Insurance Risk/Reward Ratings (RRRs) take into account objective measures of the current state and long-term potential of both the non-life and the life segments. It also takes into account an assessment of the openness of each segment to new entrants and economic conditions. Collectively, these measures enable an objective assessment of the limits to potential returns across all countries and over a period of time. The ratings also incorporate an objective assessment of the risks to the realisation of returns. The risk assessment is based on BMI's country risk rating. It embodies a subjective assessment of the impact of the regulatory regime on the development and the competitive landscape of the insurance sector.

Table: Developed States Insurance Risk/Reward Ratings

Rewards

Risks

Overall rating
Industry Rewards - Non-life - Life Country Rewards Rewards Regulatory Framework Country Risks Risks Rating Rank
UK93.892.595.080.588.4100.078.687.287.51
US92.595.090.077.386.4100.079.587.786.82
Netherlands75.090.060.079.076.6100.085.791.484.23
France77.582.572.578.377.890.077.882.782.94
Bermuda86.395.077.564.077.495.072.781.680.85=
Germany78.890.067.576.878.090.085.687.380.85=
Canada75.082.567.578.076.2100.085.591.380.77
Switzerland68.870.067.587.476.290.090.290.179.38
Italy68.870.067.567.568.390.070.178.177.09
Spain66.375.057.570.267.890.073.179.974.610
Australia57.557.557.563.159.790.081.885.172.111
New Zealand 43.8 47.5 40.0 82.7 59.3 90.0 87.5 88.5 67.0 12
Japan55.057.552.571.961.855.084.372.664.413
Scores out of 100, with 100 the best. Source: BMI

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