Mapfre Economicsin cooperation with Fundación Mapfre, conducted the study “Demography: Analysis of its impact on insurance operations“, from which it follows that the changes currently taking place in demographic structure all over the world they have a direct impact on the development of the economy, and especially on the insurance business. These changes mainly have a direct impact on sectors such as healthcare, private savings, automobiles and real estate, among others.
In this study, Mapfre Economics calculated the Insurance Potential Indicator by Demographic Impulse (IPAID) for 179 countries, an index that assesses the growth and development capacity of the insurance market based on the opportunities arising from the process of demographic evolution and per capita income.
In the ranking of these 179 countries,Italy ranks 30th (4th country in Europe)which makes it one of the countries with the greatest potential for growth and development of the insurance market.
A ranking of insurance potential by demographic influence by Mapfre Economics leads the way China, India and the United States of America. In the specific case of China and India, the study explains that the biggest contributor to this position is their demographic weight, which compensates for their lower current contribution to GDP per capita and their growth prospects.
In the United States, however, the biggest contributors come from income levels, GDP per capita, the outlook for growth in health care spending, and the fact that there are good prospects for growth in the over-24 population over the next two decades. According to the study, this last factor will directly affect the expansion of the housing stock, and therefore the development of home and life insurance related to mortgages.
On the Old Continent, Germany ranks 20th, the United Kingdom 22nd, followed by France (23rd). These are all countries with high values in relation to the estimated growth of private savings, health spending and GDP per capita.
This high-potential group includes other countries such as Japan (19), thanks to its greater potential in terms of demographic weight, per capita income and health spending; Canada (27), thanks to its demographic weight and per capita income; Colombia (32) and Argentina (38), whose demographic weights increase their potential for life savings and health insurance; or Peru (44), which represents a relatively more balanced position in its partial indicators, which brings its relative position to a medium-high level of potential.
By region, the regions with the greatest potential for private savings growth are North America, Europe and Australia. Those with the highest growth in healthcare spending per capita are the United States, Europe, Australia and China.