Macau Insurance Industry Analyzed in In-Demand Research Report by Timetric
05 Apr 2013 • by Natalie Aster
Macau is one of the two special administrative regions of the People's Republic of China. The region’s economy is predominantly dependent on tourism, gambling and the manufacturing sector. However, the contribution of the financial services sector, including the insurance industry, is gradually increasing. The value of the Macau insurance industry grew at a CAGR of 7.8% during the review period (2007 2011), with life insurance as the largest segment. The growth of the insurance industry is being driven by expanding casino-related infrastructure development projects and a favorable regulatory framework, including a wide range of compulsory insurance categories such as motor third-party liability and various professional liability insurance categories. Macau has the second highest life expectancy in the world, which also contributed to the overall growth of the insurance industry during the review period. These factors are expected to remain important over the forecast period (2011-2016), which is likely to continue to witness insurance industry growth.
Macau generates a significant proportion of its revenue from the gambling industry, which is one of the largest contributors to its GDP. Multiple global investors, especially from China, have invested heavily to develop casino-related resorts, hotels and gambling tables in the region. For example, Metro-Goldwyn-Mayer (MGM) has received approval to develop a casino resort in Macau, to the value of US$2.5 billion. In addition, SJM Holdings has received approval to build a hotel with capacity of 2,000 rooms and 700 gambling tables. The new report “The Insurance Industry in Macau, Key Trends and Opportunities to 2016” by Timetric states, that other investors such as The Sands Corporation have also announced their intention to build a resort in Macau, while Wynn will develop a US$4 billion resort. Overall, over US$10 billion worth of investment in new casino-related infrastructure projects are planned. Furthermore, a number of large-scale construction projects are underway including the Hong Kong-Zhuhai-Macau Bridge, Macau Light Rail Transit System and Guangzhou-Zhuhai Intercity Mass Rapid Transit System. These high value infrastructure development projects are expected to accelerate the demand for engineering, marine and transit, and property insurance over the forecast period.
The Insurance Industry in Macau, Key Trends and Opportunities to 2016
Published: February, 2013
Price: US$ 3,500.00
Macau functions as a special administrative region of China and has a well regulated insurance industry. The Monetary Authority of Macau has applied mandatory provisions for a wide range of insurance categories including insurance for motor vehicles, employee compensation, professional liability insurance for travel agents, public liability insurance in connection to the fixing of propaganda and publicity material, liability insurance for pleasure vessels, and professional liability for lawyers. In addition, the regulatory body has established a set of regulations for voluntary retirement schemes. These mandatory requirements were important drivers of growth in the overall insurance industry, and are one of the key reasons why the Macau insurance industry remained largely unaffected by the global financial crisis.
More information can be found in the report “The Insurance Industry in Macau, Key Trends and Opportunities to 2016” by Timetric.
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