By Evelina F. Pietruschka
Bangkok, Thailand, November 23, 2016
Insurance, known for its long-term nature, plays an essential role in supporting and sustaining economic growth in the ASEAN region. Beyond the traditional protection products, the insurance industry provides capital with a long-term investment horizon and generates opportunities for public-private partnerships in infrastructure projects that are instrumental to economic growth.
Strategically located between China and India with 10 member states, the ASEAN Economic Community (AEC) is one of the world’s most dynamic and fastest-growing regions with continued economic growth expected. With an aggregate gross domestic product (GDP) of US$2.6 trillion in 2014, it is the third largest economy in Asia and the seventh largest in the world. The region’s GDP is forecasted to expand over $5.4 trillion by 2030.
As the world’s third largest market in Asia with 622 million people in 2014, ASEAN’s population is expected to reach 721 million by 2030. The region is seeing a significant demand for infrastructure with a massive gap between infrastructure capacity and demand projected in the region by 2020. The Asian Development Bank estimates that ASEAN will need to invest up to $8 trillion in infrastructure from 2010 to 2020, as well as an annual investment of $60 billion for road, rail, power, water and other infrastructure.
Read more at Jakarta Post
The writer is secretary-general of ASEAN Insurance Council.