Growth in the Saint Lucian economy together with public investments will spur the attention of global investors and insurers, says new forecast report from Timetric.
Since 2008 the Saint Lucian insurance industry has been growing with a gross written premium CAGR of 2.5% to value US$22.5 million in 2012. Despite the global financial slowdown, Saint Lucia was the only country to record positive economic growth in the Eastern Caribbean Currency Union (ECCU) between 2008 and 2012. The main drivers for the positive growth were the rising exports and a thriving tourism industry. According to Timetric, the economic growth in Saint Lucia is expected to draw the attention of global investors, including insurers, towards 2017.
Saint Lucian insurance penetration remains below the regional average
The penetration rate of the Saint Lucian insurance penetration stood at 1.8% in 2012, which is below the Latin American average of 2.5%. According to Timetric, this low level of penetration indicates that the insurance industry is performing below its potential and has significant scope for future growth.
Improving public sector construction activity to increase demand for non-life insurance
In 2011 hurricane Tomas hit the country causing huge damages to buildings and infrastructure. The significant rise in public infrastructural investment following the damages is likely to further increase the demand for non-life insurance towards 2017.
|
