Asia - Q4 2012


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 58.6
Industry rewards 42.5
-Of which non-life 45.0
Non-life premiums, 2012, US$mn2,909.33.0
Non-life premium increase, 2012-2016, US$mn439.83.0
Non-life penetration, 2012,%1.84.0
Measure of openness8.0
-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 openness8.0
Country rewards 82.7
GDP per capita, 2012, US$34,8989.0
Active population, 2012, % of total-7.0
Tax regime8.4
GDP volatility9.0
Financial infrastructure7.9
Risks 88.5
Regulatory framework 90.0
Regulatory framework and development10.0
Regulatory framework and competitive landscape8.0
Country risks 87.5
Long-term financial risk9.7
Long-term external risk7.3
Long-term policy continuity8.0
Legal framework9.3
Bureaucracy9.5
Insurance Risk/Reward R ating 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
Industry Rewards Industry Rewards - Non-Life Industry Rewards - Life Country Rewards Rewards Regulatory Framework Country Risks Risks Insurance RRR Rank
UK92.590.095.080.587.7100.078.687.287.51
US92.595.090.077.386.4100.079.587.786.82
Netherlands82.592.572.579.081.1100.085.791.484.23
France86.385.087.578.383.190.077.882.782.94
Bermuda88.897.580.068.080.595.072.781.680.85=
Germany78.890.067.576.878.090.085.687.380.85=
Canada75.082.567.578.076.2100.085.591.380.77
Switzerland66.365.067.587.474.790.090.290.179.38
Italy81.372.590.067.575.890.070.178.177.09
Spain73.877.570.070.272.390.073.179.974.610
Australia65.057.572.563.164.290.081.885.172.111
New Zealand 42.5 45.0 40.0 82.7 58.6 90.0 87.5 88.5 67.0 12
Japan55.057.552.569.961.055.084.372.664.413
Scores out of 100, where 100 is the best. Source: BMI