Category Archives: Uncategorized

Can the BRICS keep building wealth?

The ultra-wealthy populations in the BRICS countries have prospered in recent years, increasing in number by almost a third and withstanding the global financial crisis.

As of 2011, there are approximately 1.9 million HNWIs in the BRICS, with a combined wealth of US$7.5 trillion. This equates to 11.3% of total worldwide HNWIs volumes (16.8 million) and 11.4% of total worldwide HNWI wealth (US$66 trillion). The total number of HNWIs in the BRICS increased by 30% over the review period from 1.5 million HNWIs in 2007 to 1.9 million in 2011.

China accounts for the greatest share of the BRICS’ wealthy population. As of 2011, two-thirds of HNWIs coming from the BRICS are Chinese, a ratio expected to increase by 2016. South Africa has by far the smallest share of high net-worths, unsurprising due to its far smaller overall population.


The number of HNWIs in China has also increased at the quickest rate over the review period since 2007, rising by 41%. In India, HNWI volumes increased by 32%; in Brazil, 31%; and 18% in South Africa. During this time, Russia was the only country in the group to experience a decline in the total number of HNWIs (-18%), largely due to a fall in the value of the Russian ruble which negatively impacted on the US dollar wealth of Russian HNWIs.

Over the forecast period (2011-2016) the overall volume of HNWIs in the BRICS is projected to increase by 76%. But the story is not just about China. India will see the strongest growth in the years ahead with the number of HNWIs in the country more than doubling by 2016 (103%). Russia will again be home to the slowest increase in HNWIs amongst the BRICS, but even there the number of millionaires is still expected to increase by over a third.

India is also home to some of the fastest growing cities for ultra-HNWIs. In the period to 2016, 30% of the fastest UHNWIs growth centers will be India, including four of the top five. Brazil made up two of the fastest growing cities over the review period. Otherwise the fastest growing locations for ultra-HNWIs over the review period, and forecast for to 2016, are again dominated by China.

Definitions:

  • For the purposes of this report, the phrase “coverage period” refers to the period of 2007–2016, while the “review period” relates to the years 2007–2011 and the “forecast period” relates to the years 2011–2016.
  • “High net worth individuals” otherwise known as “millionaires” or “HNWIs” refer to individuals with net assets of US$1 million or more excluding their primary residences
  • “Ultra high net worth individuals” or “UHNWIs” are individuals with net assets of US$30 million or more excluding their primary residences
  • Billionaires are those HNWIs with wealth of US$1 billion or more, including equities, bonds, cash and deposits, fixed-income products, real estate (excluding primary residence), alternative assets and business interests.

For more information see WealthInsight’s BRICS Wealth Book 2012.

Emerging Market and Investment Opportunities in Indonesian Motor Insurance to 2016

Emerging Market and Investment Opportunities in Indonesian Motor Insurance to 2016

Executive Summary

The Indonesian motor insurance category grew during the review period. There are positive growth prospects for the Indonesian motor insurance category, which are being supported by the country’s favorable macroeconomic fundamentals. The number of automobile sales in the country is expected to increase during the forecast period, which will generate a larger customer base for Indonesian motor insurance. The volume of motor insurance policies sold in Indonesia recorded robust growth, at a CAGR of 24.36% during the review period. The number of motor insurance policies sold is expected to increase at a CAGR of 10.33% over the forecast period. The Capital Market and Financial Institution Advisory Agency (BAPEPAM-LK) has placed a strict capital requirement on insurance companies in Indonesia and companies that fail to meet the above regulation will be penalized. The new regulation by BAPEPAM-LK is designed to strengthen the Indonesian motor insurance category and bring in some consolidation.

Key highlights of this title

  • The motor insurance category in Indonesia recorded robust sales during the review period, supported by strong growth in automobile sales. The number of policies sold in the Indonesian motor insurance category increased at a CAGR of 24.36% during the review period.
  • The category is projected to grow at a CAGR of 10.33% over the forecast period to reach volume sales of 25.1 million in 2016. Third-party motor insurance, which is compulsory in Indonesia, is expected to drive the demand for motor insurance in the country. 
  • The Capital Market and Financial Institution Advisory Agency (BAPEPAM-LK) has placed a strict capital requirement on insurance companies in Indonesia and companies that fail to meet the above regulation will be penalized. The new regulation by BAPEPAM-LK is designed to strengthen the Indonesian motor insurance category and bring in some consolidation.
  • Insurance companies in Indonesia are increasingly entering into agreements with banks in order to sell motor insurance products.
  • The motor insurance category in Indonesia is fairly fragmented, with Astra Insurance accounting for the highest proportion of the total premiums earned. Overall, the ten leading companies account for a combined market share of 70%.

Scope

This report provides a comprehensive analysis of the motor insurance industry in Indonesia:

  • It provides historical values for Indonesian motor insurance industry for the report’s 2007–2011 review period and forecast figures for the 2012–2016 forecast period
  • It offers a detailed analysis of the key markets in the Indonesian motor insurance industry, along with market forecasts until 2016
  • It details the different macroeconomic factors affecting the motor insurance industry in Indonesia
  • It covers an exhaustive summary on the key trends and drivers affecting the Indonesian motor insurance industry
  • It outlines current regulatory framework in the industry
  • It details the business and operations strategy used by various Indonesian motor insurance companies
  • It provides the market share of major insurers in the Indonesian motor insurance industry
  • It profiles the major insurers in the Indonesian motor insurance industry

Reasons to Purchase

  • Make strategic business decisions using top-level historic and forecast market data related to the Indonesian motor insurance industry and each market within it
  • Understand the key market trends and growth opportunities within the Indonesian insurance industry
  • Assess the competitive dynamics in the Indonesian motor insurance industry
  • Gain insights into the business and operations strategies used by the Indonesian motor insurers
  • Gain insights into key regulations governing the Indonesian motor insurance industry

More information available at:

http://bricdata.com/research/report/IS0202MR/

Emerging Market and Investment Opportunities in South Korean Motor Insurance to 2016

Emerging Market and Investment Opportunities in South Korean Motor Insurance to 2016

Executive Summary

The South Korean motor insurance category is growing steadily due to the introduction of mandatory motor liability insurance policies and the country’s rising number of passenger car sales. According to South Korean Law, all car users must purchase compulsory automobile liability insurance (CALI) which provides insurance cover against physical injury or death caused to a third party in a road accident. The implementation of mandatory motor insurance policy has been one of the main growth drivers for South Korean motor insurance during the review period. Furthermore, the South Korean government has passed several support schemes to encourage consumer spending and support the expansion of the country’s automobile industry during the review period. The government’s support schemes include multiple tax benefits for consumers who buy new cars and trade in vehicle models bought prior to 1999. This drove the South Korean motor insurance category growth during the review period.

Key highlights of this title

  • The South Korean motor insurance category in written premium value grew at a compound annual growth rate (CAGR) of 1.6% during the review period. This growth was supported by the introduction of mandatory motor insurance policies in South Korea and by the country’s rising number of passenger car sales
  • The South Korean motor insurance category is projected to grow at a rapid rate over the forecast period (2012–2016). The rapid development of automobile sales is expected to fuel the motor insurance growth over the forecast period.
  • The South Korean motor insurance category is highly concentrated, and includes a small number of local companies and several global businesses with large market shares
  • Samsung Fire and Marine is the market leader in the motor insurance category, and this company alone accounted for a share of 31% of the South Korean non-life insurance segment in 2010
  • The South Korean motor insurance category loss ratio is one of the highest among Asian countries. The health insurance losses grew at a CAGR 4.7% during the review period, and the loss ratio increased from 72.91% in 2007 to 87.7% in 2011

Scope

This report provides a comprehensive analysis of the motor insurance industry in South Korea:

  • It provides historical values for South Korean motor insurance industry for the report’s 2007–2011 review period and forecast figures for the 2012–2016 forecast period
  • It offers a detailed analysis of the key markets in the South Korean motor insurance industry, along with market forecasts until 2016
  • It details the different macroeconomic factors affecting the motor insurance industry in South Korea
  • It covers an exhaustive summary on the key trends and drivers affecting the motor insurance industry
  • It outlines current regulatory framework in the industry
  • It details the business and operations strategy used by various South Korean motor insurance companies
  • It profiles the major insurers in the South Korean motor insurance industry

Reasons to Purchase

  • Make strategic business decisions using top-level historic and forecast market data related to the South Korean motor insurance industry and each market within it
  • Understand the key market trends and growth opportunities within the South Korean motor insurance industry
  • Assess the competitive dynamics in the South Korean motor insurance industry
  • Gain insights in to the business and operations strategies used by the South Korean motor insurers
  • Gain insights into key regulations governing the South Korean motor insurance industry

More information available at:

http://bricdata.com/research/report/IS0204MR/

Emerging Market and Investment Opportunities in Turkish Motor Insurance to 2016

Emerging Market and Investment Opportunities in Turkish Motor Insurance to 2016

Executive Summary

The Turkish motor insurance category has benefited from the country’s rising number of automobile sales and improving economic conditions. As a result, the Turkish motor insurance category increased in written premium value from TRY4.7 billion in 2007 to TRY5.5 billion in 2011, at a compound annual growth rate (CAGR) of 4.46% during the review period (2007–2011). In addition, the volume of motor insurance policies sold in Turkey increased at a CAGR of 5.57% during the review period, to reach 17.0 million in 2011.

The category’s written premium value is projected to grow at a CAGR of 5.03% over the forecast period (2012–2016), to reach TRY7.1 billion in 2016. In addition, the volume of motor insurance policies sold is projected to increase at a CAGR of 3.30% over the forecast period, to reach 20.1 million policies in 2016.

Key highlights of this title

  • The Turkish motor insurance category increased in written premium value from TRY4.7 billion in 2007 to TRY5.5 billion in 2011, at a compound annual growth rate (CAGR) of 4.46% during the review period (2007–2011).
  • The category’s written premium value is projected to grow at a CAGR of 5.03% over the forecast period (2012–2016), to reach TRY7.1 billion in 2016.
  • The domestic automobile sales are a key growth driver for the Turkish motor insurance category. The number of domestic automobile sales increased from 229.8 thousand units in 2008 to 379.1 thousand units in 2011, at a CAGR of 18.16% during 2008–2011.
  • The Turkish government’s favorable regulations have intensified the level of competition in the motor insurance category.
  • The Turkish motor insurance category is concentrated, with the 10 leading companies accounting for a combined share of 76.9% of the motor insurance written premium value in 2011.
  • The Turkish motor insurance category is expected to become more consolidated due to the increasing level of competition, as larger companies are expected to use acquisition strategies to strengthen their position in the market.
  • One of the challenges faced by the Turkish motor insurance category is to increase the penetration of motor insurance in the country to match the international standards.

Scope

This report provides a comprehensive analysis of the motor insurance industry in Turkey:

  • It provides historical values for Turkish motor insurance industry for the report’s 2007–2011 review period and forecast figures for the 2012–2016 forecast period
  • It offers a detailed analysis of the key markets in the Turkish motor insurance industry, along with market forecasts until 2016
  • It details the different macroeconomic factors affecting the motor insurance industry in Turkey
  • It covers an exhaustive summary on the key trends and drivers affecting the motor insurance industry
  • It outlines current regulatory framework in the industry
  • It details the business and operations strategy used by various Turkish motor insurance companies
  • It profiles the major insurers in the Turkish motor insurance industry

Reasons to Purchase

  • Make strategic business decisions using top-level historic and forecast market data related to the Turkish motor insurance industry and each market within it
  • Understand the key market trends and growth opportunities within the Turkish motor insurance industry
  • Assess the competitive dynamics in the Turkish motor insurance industry
  • Gain insights into the business and operations strategies used by the Turkish motor insurers
  • Gain insights into key regulations governing the Turkish motor insurance industry

More information available at:

http://bricdata.com/research/report/IS0205MR/

Online Strategies of Banking and Insurance Companies in the BRIC Countries

Online Strategies of Banking and Insurance Companies in the BRIC Countries

Executive Summary

Internet banking has become increasingly popular in Brazil, and the country’s banks have begun to offer various online services, ranging from checking account transactions to making investments and even paying bills on the internet. There were 37.8 million customers of internet banking in Brazil in 2010, who together conducted 12.8 billion online transactions in 2010. Most Russian banks and insurance companies are currently seeking to develop English language websites in order to attract more international customers. Russian customers are generally very apprehensive of shopping or conducting banking activities online. Due to this, Russian banks have focused on improving the security of their websites. For example, Rosbank uses multiple software programs to ensure the complete security of their customers’ transactions. Internet banking has become an integral part of the Indian banking industry, although online insurance sales only started in the country in the late 2000s. Most Indian banks have developed mobile applications as a strategy to attract young customers. The banks in India are expected to extend the scope of the mobile banking channel to offer a broader array of products and services over the forecast period. Indian banks also use social media sites to provide basic information and market their products and new offers. It is expected that banks will incorporate consumer grievance redressal mechanisms into social media networks over the forecast period. Banks and insurers are increasingly utilizing the online platform to market their products and services. Companies are attracting customers by providing an all-inclusive online service network. The Bank of China launched a special online service for its small- and medium-size enterprises (SMEs). Chinese banks also offer an online banking platform for their overseas customers. To attract domestic and international customers, the Industrial and Commercial Bank of China launched a cross-border foreign exchange remittance and global account management services. Similarly, the Chinese insurance company PICC introduced a special online website http://www.e-picc.com.cn to offer online insurance and other value-added services to its customers. Meanwhile, Ping An Insurance introduced an online shopping model that offers all of its insurance services.

Key highlights of this title

  • The increasing internet and mobile penetration in Brazil is expected to drive the use of online channel for conducting banking and insurance transaction over the forecast period. Companies in Brazil are also using online platforms as a medium to market and cross-sell their products to existing customers.
  • The Russian online banking and insurance transactions currently account for only a small proportion of the country’s total banking and insurance services. However, the leading Russian banks and insurance companies, such as VTB Bank, Sberbank, Bank of Moscow, Rosbank, TransCreditBank, Renaissance Insurance Group, OJSC IC Allianz (Rosno) and Uralsib, are planning to strengthen their online capabilities to capitalize on the demand for online financial services.
  • Most of the largest banks in India offer online services including online banking and mobile banking facilities, although only a few banks, such as ICICI Bank, Citibank, PNB and Bank of Baroda, collect feedback on their websites. India’s leading insurers offer insurance policies and premium payment options online. However, only a few of these insurers offer advisory services, and Bajaj Allianz is the only notable insurer that offers insurance through a mobile application.
  • Chinese banking and insurance companies have invested significant amounts of time and capital to develop robust online and mobile distribution platforms for their customers. The top four banks in the Chinese banking industry, the Bank of China, China Merchant Bank, China Construction Bank and ICBC Bank, have developed online sites that offer an extensive range of services for their retail and corporate customers.

Scope

  • This report provides an extensive analysis of the online strategies of banking and insurance companies
  • This report provides an extensive analysis of online marketing strategies used by banking and insurance companies in the four BRIC nations – Brazil, Russia, India and China.
  • The report provides a detailed understanding of how online platforms are being used by banking and insurance industries to identify new markets, launch products, gather customer feedback and monitor brand performance.
  • The report also provides insights into the evolving social media market sizes for each country.
  • It also provides insights into future online marketing strategies adopted by players in each industry to strengthen market position.

Reasons to Purchase

  • Gain in-depth insight into the online banking and insurance strategies used in each of the BRIC countries.
  • Understand the various market dynamics within the BRIC countries by the industry and use the knowledge to capitalize on the potential of these high-growth markets.
  • Take informed decisions and formulate effective technical and marketing strategies based on the report’s detailed market insights on online strategies, including social media marketing.
  • Understand the growth strategies adopted by key companies.

More information available at:

http://bricdata.com/research/report/IS0206MR/

Market Opportunities and Emerging Trends in the Prepaid Card Market in Sub-Saharan Africa

Market Opportunities and Emerging Trends in the Prepaid Card Market in Sub-Saharan Africa

Executive Summary

The prepaid cards market has slowly gained popularity in South Africa, as the organized retailers and vendors began to accept prepaid cards, with no processing fee. Furthermore, hoteliers and vehicle rental vendors have also started to accept prepaid cards for their service transactions. In addition, convenience will be the most important driver of the adoption of prepaid cards in South Africa. Demand from younger consumers is expected to play a vital role in the growth of the prepaid cards market over the forecast period. While simple eligibility criteria established by Nigerian banks is expected to support the sales of prepaid cards in the country. As the majority of Nigerians do not have a bank account, Nigerian banks have established simple eligibility criteria so that more people can easily benefit from prepaid cards. Moreover, The Central Bank of Nigeria has implemented a new policy in Lagos to reduce the amount of physical cash such as notes and coins in rotation in the economy, while encouraging electronic-based transactions for the payment of goods and services. In Kenya, the prepaid card market is in its early stages of development and provides modest growth potential for new market entrants. A number of banks, including Kenya Commercial Bank, Investment and Mortgages Bank and Bank of Africa have begun to offer prepaid cards. The prepaid cards markets in other Sub-Saharan countries such as Tanzania, Mozambique, Zambia and Botswana are in their early stages of development and only a few companies have entered the respective markets. The prepaid cards market in Tanzania is more developed than that of Mozambique, Zambia and Botswana, however, younger consumers are expected to support further growth over the forecast period.

Key highlights of this title

  • For all the Sub-Saharan Countries, growth in macroeconomic indicators is expected to support the financial cards market. The overall economic growth in the Sub-Saharan Countries attracts investments in various sectors, which are also expected to support the growth of prepaid cards in these countries.
  • The South African prepaid cards market grew significantly during the review period and this is expected to grow at a CAGR 63.59% over the forecast period. Such growth can be attributed to the projected social protection expenditure by the South African National Treasury, which is expected to pay wages to millions of South African through prepaid cards over the forecast period.
  • The Nigerian prepaid cards market recorded a sizeable growth during the review period and this is expected to be stronger and grow at a CAGR 47.91% over the forecast period.
  • Kenya’s prepaid cards market is projected to record a CAGR of -2.76% over the forecast period. The negative growth is mainly due to the increasing popularity of mobile payment services and a lack of technological infrastructure.

Scope

  • This report provides a comprehensive analysis of the prepaid card market in Sub-Saharan Africa
  • It provides current value for Sub-Saharan Africa prepaid card market for the year 2011 and forecast figure for the year 2016
  • It details the different macroeconomic factors affecting the Sub-Saharan prepaid card market
  • It covers an exhaustive summary on the key trends and drivers affecting the prepaid card market
  • It outlines current regulatory framework in the industry
  • It details the marketing strategies used by various bankers
  • It profiles the major banks in the Sub-Saharan prepaid card market

 

Reasons to Purchase

  • Make strategic business decisions using top-level historic and forecast market data related to the Sub-Saharan Africa prepaid card industry and each market within it
  • Understand the key market trends and growth opportunities within the Sub-Saharan Africa prepaid card market
  • Assess the competitive dynamics in the Sub-Saharan Africa prepaid card market
  • Gain insights in to the marketing strategies used by the prepaid card selling vendors
  • Gain insights into key regulations governing the Sub-Saharan Africa prepaid card market

More information available at:

http://bricdata.com/research/report/IS0207MR/

South Asia’s Wealth Diaspora: Looking Beyond Non-Resident Indians

South Asia’s Wealth Diaspora: Looking Beyond Non-Resident Indians

Executive Summary

The population of overseas Indians, including non-resident Indians (NRIs) and persons of Indian origin (PIOs), reached 21.6 million in 2011. The US accounts for the largest proportion of NRI millionaires, followed by the UK, the UAE, Canada, Hong Kong, Singapore and Indonesia. The population of overseas Pakistanis, including non-resident Pakistanis (NRPs) and persons of Pakistani origin (PPOs) reached eight million in 2011. The UK has the largest share of NRP millionaires, followed by the US, the Persian Gulf countries and Canada. The population of non-resident Bangladeshis (NRBs) reached 5.4 million in 2011. The Persian Gulf countries account for the largest number of NRB millionaires, followed by the UK and the USA. The population of overseas Sri Lankans, including non-resident Sri Lankans (NRSLs) and persons of Sri Lankan origin (PSLOs) reached 2.5 million in 2011. Singapore accounts for the highest proportion of overseas Sri Lankans in 2011; followed by Canada, the UK and the UAE.

Key highlights of this title

  • The value of the worldwide wealth management market for NRI millionaires increased at a compound annual growth rate (CAGR) of 9.40% during the review period. This value is expected to increase at a CAGR of 10.93% over the forecast period.
  • With a worldwide NRI base of 21.6 million, India already has the world’s second-largest non-resident nationals’ population. The country’s NRI millionaire count of 170,000 is also among the highest in the world, with this group having average wealth of over US$3 million. Moreover, the total wealth of NRI millionaires expected to increase by 6.9% in 2011-2012, and the NRI population is currently growing bzy 1% per annum. This equates to an annual growth of 300,000 people, a growth that is expected to increase opportunities for wealth management services providers.
  • With Persian Gulf countries accounting for 48% of the total non-resident Pakistani population, Gulf-based NRPs are one of the largest markets for wealth management companies. In terms of proportion of total NRP population, the Persian Gulf countries are followed by the UK and the US. Furthermore, Saudi Arabia and the UAE both employ a considerable number of Pakistani workers. Consequently, many leading domestic and international banks are focusing on these customers in order to expand their wealth management businesses.
  • The total amount of NRB remittance sent to Bangladesh recorded robust growth during the review period. However, this growth is slowing rapidly with, for example, the 2011 annual growth of 6% being less than half than the 2010 annual growth of 13.4%. Over the forecast period, the increasing number of Bangladeshis leaving their home country is expected to continue to drive remittance growth, with total remittance expected to record a CAGR of 12.02%.
  • The value of the worldwide wealth management market for NRSL millionaires increased at a CAGR of 12.43% during the review period. This value is expected to record a CAGR of 11.31% over the forecast period.

Scope

  • This report provides an extensive analysis on the wealth management market for non-resident South Asians
  • It details historical values for wealth management market size of non-resident South Asian millionaires for 2007–2011, along with forecast figures for 2012–2016
  • The report provides a detailed analysis on investment trends and drivers, marketing strategies, challenges in wealth management market for non-resident South Asians
  • The report profiles top wealth management providers across the globe providing services to non residents South Asians

Reasons to Purchase

  • Take strategic business decisions using top-level historic and forecast market data related to wealth management market for non-resident South Asians.
  • Understand the growth drivers of the wealth management market for non-resident South Asians, along with key market trends and growth opportunities
  • Assess the marketing and growth strategies adopted by the banks and other wealth management service providers for non-resident South Asians
  • Assess the competitive dynamics in the wealth management market for non-resident South Asians

More information available at:

http://bricdata.com/research/report/IS0208MR/