（英文）行業(yè)資料 Global Insurance Report 2023：Closing the personal P C protection gap -mckinsey

GlobalInsurance

Report2023:ClosingthepersonalP&Cprotectiongap

Despiteoverallgrowth,personalP&Clinesarelosingmarketrelevanceandfacingagrowingprotectiongap,withacleardichotomybetweenlocalwinnersandlosers.What’snext?

ThisreportisacollaborativeeffortbySelmaBelghiti,

AnaBrito,KiaJavanmardian,JoséMiguelNovo,

SirusRamezani,andAshishSrivastava,representing

viewsfromMcKinsey’sInsurancePractice.

March2023

Contents

ii

Introduction

01

PersonalP&Cindustrylandscape

07

ChallengesfacingpersonalP&Cinsurance

13

RoadmapforpersonalP&Cin2023andbeyond

23

Gettingstarted

Introduction

Despiteaslowdownduringtheheightofthepandemic,personalpropertyandcasualty(P&C)insurancehasseenannualgrowthof3percentsince2019.PersonallinesstillrepresentmorethanhalfofglobalP&Cgrosswrittenpremiums(GWP),butagrowingprotectiongapinbothdevelopedanddevelopingcountriesindicatesthatinsurersstruggletodesignproductsfitfortheevolvingandemergingrisksthatmodernpersonal-linesconsumersdemand.

Theprotectiongaphasanumberofdirectandindirectcauses.Indevelopedeconomies,customers’personalP&Cinsuranceneedsarechangingsignificantlyandrapidly—particularlywhenitcomestomotorinsurance,giventhatconnectedcarsandthesharingeconomyaretransformingpricingmodelsandriskprofiles.Extremeweathereventsarewreakinghavoc,withincreasedflooding,tropicalstorms,wildfires,anddroughtschallengingtraditionalriskassessmentandunderwritingmodelsinpropertyinsurance.Cybersecurityriskisontherise,andmanyinsurersarestrugglingtoproperlyquantifyriskexposure,adjusttermsandconditions,andconsequentlywintheconvictionofreinsurancecapacity.And

e-commerceisbecomingindispensable,1bringingaheightenedriskofonlinefraudandtheft.

Developingeconomies’populationsalsoremainunderinsured,withpremiumslargelyfor

nonmandatoryproductssuchashomeowners’

insurancestillrepresentingasmallportion

ofpeople’sincome—mostlydrivenbylimited

purchasingpowerandalackofawarenessabout

thebenefitsofpersonalP&Cprotection.InLatin

America,personalpropertyinsuranceasaportion

ofincomeisjust0.12percentofGDP,compared

with0.32percentforWesternEurope2

Theindustryisgrowingoverall,butamore

granularassessmentshowsthatlocallyfocused

scalelargelydefinesagivenpersonalP&C

insurer’scompetitivestance.Regionalwinnersare

likelytocontinuetoretainmarketshare,benefiting

fromthecapabilitiestheyemployedtoachieve

theircurrentleadershippositionandfromtheir

investmentcapacitygoingforward.Moreglobally,

personalP&Cinsurancewilljoinallindustriesin

contendingwithinflationinthenearterm,putting

additionalpressureonmargins.Inflationwillalso

haveclearimplicationsfortraditionaloperating

models—specificallybyrequiringfasterfeedback

loopsbetweentheclaims,actuarial,andpricing

functions.Insurersmustrecalibratetheirproducts,

distribution,andtechnicalmodelsforacustomer

baseandanemployeepoolwithhigherstandards

thanever.

ThisisthethirdandfinalchapterofMcKinsey’s

GlobalInsuranceReport20233

1“Becomingindispensable:Movingpaste-commercetoNeXTcommerce,”McKinsey,November15,2022.

2McKinseyGlobalInsurancePools.

3ToreadthefirsttwochaptersonlifeinsuranceandP&Ccommercialinsurance,see“GlobalInsuranceReport2023:Reimagininglifeinsurance,”McKinsey,November16,2020;and“GlobalInsuranceReport2023:ExpandingcommercialP&C’smarketrelevance,”McKinsey,February16,2023.

iiGlobalInsuranceReport2023:ClosingthepersonalP&Cprotectiongap

Insurersmustrecalibrate

theirproducts,distribution,

andtechnicalmodels

foracustomerbaseand

anemployeepoolwith

higherstandardsthanever.

1

Personal

P&Cindustrylandscape

In2022,theinsuranceindustrysurpassed

$6.5trillioninGWP,withP&Crepresentingalmostone-thirdoftotalrevenues.ThepremiumvolumesofboththeglobalinsuranceindustryandP&Chaverecoveredfromthepandemic(Exhibit1);however,globalinsuranceprofitsstillhaveyettosurpassprepandemiclevels,and2022P&Cprofitslagged2019levelsbyabout10percent,sufferingfromacuteinflation.

PersonalP&Cinsurancesawanaveragethree-yearCAGRof3percentfrom2019to2022,comparedwith1percentduringtheheightofthe

GlobalInsuranceReport2023:ClosingthepersonalP&Cprotectiongap1

5,825

5,765

1,565

1,786

2,475

1,462

1,743

2,559

1,786

1,743

784

1,002

750

993

132

Exhibit1

Theoverallindustryhasbeengrowing,butthegrowthofpersonalpropertyandcasualtylineshaslaggedbehindthatofcommerciallines.

Globalinsurancegrosswrittenpremiums(GWP),$billions1

CAGR,2019–22,%

Health7

P&C5

Life2

6,566

1,800

2,019

2,748

201920202022E

+4.4%p.a.2

Global

propertyand

casualty(P&C)GWP,

$billions1

CommercialP&CPersonalP&C

CAGR,2019–22,%

7

3

2,019

922

1,097

201920202022E

+5.0%p.a.2

GlobalP&Cafter-tax

proits,$billions1

8%decrease

149

144

201920202022E

Note:2022isanestimate.Figuresmaynotsum,becauseofrounding.

12021averageixedexchangerateused.2Perannum.

Source:McKinseyGlobalInsurancePools

McKinsey&Company

pandemic—better,butlaggingP&Ccommercial’s

growthof7percentsince2019,fueledbyrate

increases4Personallinesrepresentmorethanhalf

ofGWPinglobalP&C,butcurrentgrowthand

profitabilityheadwindsconstituteaclearcallto

changethecourseandregainrelevanceinan

increasinglycomplexnearfuture.

AcloserlookatP&Cmarketnuancesshowsthat

personalP&Cinsuranceremainsalocalgame

andrequiresinsurerstohaveastrongpresence

withintheirspecificregion.IntheUnitedStates,

thetopfiveinsurersearnadisproportionateshare

oftheP&Cinsurancegrowthandprofitability,

claiming56percentand61percentoffive-year

growthandpretaxincome,5respectively—

outpacingtheir2021marketshareof48percent

andtherebysignalinganintensifyingmarket

concentration.Thisphenomenonisreplicated

acrossmostofEuropeandAsia–Pacific,with

thetopfiveinsurersclaimingasmuchas96percent

ofthepastfiveyears’profit,asisthecaseinJapan(Exhibit2).Suchconcentrationislessprevalent

acrossLatinAmericaandintheUnitedKingdom;

intheUnitedKingdom,aggregatorsplayamore

relevantrolecomparedwithothergeographies.In

mostplaces,oncethenextfiveinsurersare

accountedfor,theremaininginsurershavevery

littlelefttoserve(seesidebar,“Choosingwhich

marketstoengageandinvestin”).

4“ExpandingcommercialP&C’smarketrelevance,”February16,2023.

5TotalP&CinsuranceincomeintheUnitedStates,includingunderwriting,investments,andincomefromothersources,netofreinsurance.

2GlobalInsuranceReport2023:ClosingthepersonalP&Cprotectiongap

GlobalInsuranceReport2023:ClosingthepersonalP&Cprotectiongap3

44

51

44

58

43

74

69

42

Exhibit2

Acrossmostgeographies,thetopivepropertyandcasualtyinsurerscaptureahighershareofgrowth,income,orboth.

Top5insurers’

NorthAmericaEuropeLatinAmericaAsia–Paciic

P&Cmarketsharewithintheircountry,1%

Increasein5-yearpremiumoftop5insurers,%

5-yearcumulativepretaxincomeoftop5insurers,2%

Canada

UnitedStates

31

56

33

61

45

48

UnitedKingdomSpain

Germany

France

Italy

18

42

48

62

67

24

29

52

80

Brazil

Mexico

Chile

Colombia

37

40

42

36

39

54

48

52

47

53

55

IndiaAustraliaChinaSouthKorea

Japan

40

61

74

85

108

53

66

69

74

80

90

93

84

96

Note:Basedonaveragefrom2016tothelatestyearavailable(ie,2020or2021);fortheUnitedKingdom,datastartsin2017.1Deinedasthetop5insurancecarriersbygrossdirectdomesticpremiumswritten(GDDPW)inthelatestyear.2Deinitionvariesbycountry.ForAustralia,pretaxincomerefersto2021pretaxincomeonly.

Source:Australia—AustralianPrudentialRegulationAuthority(APRA);Brazil—Susep;Canada—MSAResearcher;Chile,Colombia,Mexico—SNL;China—ChinaInsuranceYearbook;France—McKinseyGlobalInsurancePools;Germany—GermanInsuranceAssociation(GDV),McKinseyInsuranceDatabaseGermany;India—annualreports;Italy—Infobila;Japan—GeneralInsuranceAssociationofJapan,InsuranceStatistics;SouthKorea—FSSKorea;Spain—DirecciónGeneraldeSegurosyFondosdePensiones(Directorate-GeneralforInsuranceandPensionFunds)(DGSFP);UK—A.M.Best,McKinseyGlobalInsurancePools;US—S&PGlobal

McKinsey&Company

High

Market

maturity

Low

Choosingwhichmarketstoengageandinvestin

Aspersonalpropertyandcasualty(P&C)carriersevaluatewheretocompete,beingcognizantofthematurityandsophistica-tionofeachpotentialmarketwillallowcompanyleaderstobeintentionalaboutmakinggeographical-footprintdecisionsandtailoringlocalstrategies.Accordingtoouranalysis,marketmaturity—definedbydividingpremiumsbyGDP(thatis,insurancepenetration)—iscloselycorrelatedwithmarketsophistication,estimatedbasedonP&Cadminratios(thatis,levelofoperationalsophistication),levelofcompetition,andproportionofdigitalsales.

WhatdoesthismeanforpersonalP&Cinsurers’prospectsinregionalmarkets?

Tostart,maturemarketsaretypicallyeconomicallydevelopedandhavelowerpremiumgrowthcomparedwithlessmaturemarkets,whosegrowthratesbenefitfromlowerbaselinesofinsurancepenetration(exhibit).Asanexample,LatinAmerica’sinsurancepenetrationisbelowthatofdevelopedAsia,WesternEurope,andNorthAmerica,yettheregionhassustainedabove-averageGDPgrowthinsomerelevantpersonallines—namelyfireandpropertyandliability.Ofcourse,marketmaturitycomeswithproductlinenuances.Forexample,inAsia,whereoverallP&Cmarketmaturityisrelativelyaverageandmotorlines’penetrationisparallelwithgloballevels,nonmotorlineshaveyetto

gainrelevance,withapenetrationof

personalpropertypremiumsinGDPof

approximately0.07percent(versus

0.30percentglobally).1Bycontrast,less

sophisticatedmarketsarenotas

operationallyefficient(higheradmin

ratios),havelessmarketcompetition,and

havelowerdigitalsales.Basedonthe

sophisticationofaspecificmarket,the

levelandscopeofinvestmentrequiredto

winvaries—forexample,lesssophisti-

catedmarketscouldpotentiallyrealizea

moresignificantupsidefrommore-tradi-

tionaltechnical-excellenceinitiatives.

Exhibit

Marketmaturityandsophisticationarehighlycorrelated.

Marketassessment1

Bubblesize=Relativesizeofpropertyandcasualty(P&C)grossdirectdomesticpremiumswritten(GDDPW)in2021

EasternEurope6

North

America8

MiddleEast

andAfrica5

Western

Europe7

Latin

America3

Developed

Asia4

Emerging

Asia2

LowMarketHigh

sophistication

1Onlyincludescountrieswithdataonmarketmaturityandmarketsophisticationscore.2IncludesChina,India,Indonesia,Malaysia,Philippines,Thailand,andVietnam.3IncludesArgentina,Brazil,Chile,Colombia,Mexico,andPeru.4IncludesAustralia,HongKongSAR,Japan,Singapore,SouthKorea,andTaiwanChina.5IncludesEgypt,Kenya,Morocco,SaudiArabia,SouthAfrica,Tunisia,Türkiye,andtheUnitedArabEmirates.6IncludesBulgaria,Croatia,CzechRepublic,Hungary,Poland,Romania,Russia,Serbia,Slovakia,Slovenia,Ukraine.7IncludesAustria,Belgium,Denmark,Finland,France,Germany,Greece,Ireland,Italy,Luxembourg,Netherlands,Norway,Portugal,Spain,Sweden,Switzerland,andtheUnitedKingdom.8IncludesCanadaandtheUnitedStates.

Source:McKinseyGlobalInstitute;McKinseyGlobalInsurancePools

McKinsey&Company

1McKinseyGlobalInsurancePools.

4GlobalInsuranceReport2023:ClosingthepersonalP&Cprotectiongap

GlobalInsuranceReport2023:ClosingthepersonalP&Cprotectiongap5

X

Asweexploregrowththroughthelensofproduct

lines,itisclearthatpersonalP&Cfortunesare

stillledbytheperformanceofthemotor,fire,and

propertylinesofbusiness.Eventakinginto

accountsloweroverallGDPgrowthoverthepast

twoyears,thepersonalP&Cindustrystilllags

behindtheGDPgrowthrate,denotingadeclining

marketrelevancethatcanbeseenacrossmost

regionsandproducts(Exhibit3).Structurally,the

industryfacespricingpressuresdrivenbyhighfee

transparencyandalargenumberoflower-cost

options,includingdigitalattackers.Meanwhile,

organicdemandforpersonalP&Cinsurance

productsisgrowingslowlyinmaturemarkets,

drivenlargelybypriceincreasesratherthan

newrisk-protectionproductsornewcustomers—

anothersignoftheprotectiongapthatis

threateningmarkets.

Exhibit3

PersonalinsurancecarriersareexperiencingdecliningrelevanceacrosslinesandregionsrelativetoGDP.

Globalrevenuesbypersonalpropertyandcasualty(P&C)insuranceproductandregion,2022E,grossdirectdomesticpremiumswritten(GDDPW),$billions1

WesternEurope4

NorthAmerica3

EmergingAsia5

2022GDDPW

DiferencebetweenpremiumsandGDPgrowth(2016–22)inpercentagepoints(p.p.)

Growthrates,2016–22,p.p.:<0<11–8>8

DevelopedLatinMiddleEastEastern

Asia6America7andAfrica8Europe9Total

Motor

Fireandproperty

Liability2

Accident

OtherP&C2

Total

302

–0.5

127

–1.6

127

–5.0

72

–1.0

16

–4.9

10

–11.6

16

–3.2

153

2.0

68

–0.4

5

0.4

21

1.0

6

1.6

5

–7.7

4

–1.1

6

–6.9

2

2.8

1

–0.6

1

4.0

1

–7.0

0

–2.7

N/A

2

–0.5

28

–1.4

10

–5.5

42

2.2

2

–2.6

3

–8.7

4

8.3

33

0.1

5

–6.1

11

–8.3

1

–2.9

2

–12.4

1

–2.2

N/A

457

0.3

262

–1.2

147

–4.9

148

–0.6

26

–3.1

30

–10.6

26

–1.5

680

–2.6

262

–0.4

10

–5.7

92

–2.0

52

–5.0

1,097

–2.2

Note:Figuresmaynotsum,becauseofrounding.1Averageixedexchangerateused.2BothCanadaandtheUnitedStatesare100%commercialinliabilityandotherP&C.3IncludesCanadaandtheUnitedStates.4IncludesAustria,Belgium,Denmark,Finland,France,Germany,Greece,Ireland,Italy,Luxembourg,Netherlands,Norway,Portugal,Spain,Sweden,Switzerland,andtheUnitedKingdom.5IncludesChina,India,Indonesia,Malaysia,Philippines,Thailand,andVietnam.6IncludesAustralia,HongKongSAR, Japan,Singapore,SouthKorea,andTaiwanChina.7IncludesArgentina,Brazil,Chile,Colombia,Mexico,andPeru.8IncludesEgypt,Kenya,Morocco,SaudiArabia,SouthAfrica,Tunisia,Türkiye,andtheUnitedArabEmirates.9IncludesBulgaria,Croatia,CzechRepublic,Hungary,Poland,Romania,Russia,Serbia,Slovakia,Slovenia,andUkraine.

Source:McKinseyGlobalInstitute;McKinseyGlobalInsurancePools

McKinsey&Company

Itisclearthatpersonal

P&Cfortunesarestill

ledbytheperformance

ofthemotor,fire,

andpropertylines

ofbusiness.

2

ChallengesfacingpersonalP&Cinsurance

Despitethesegment’shistoricallystrongperformanceandresilienceafterthepandemic,halfofP&Cinsurersarenotearningtheircostofequity,raisingquestionsaboutthelong-termeconomicsustainabilityoftheirbusinessmodels.Unsurprisingly,publicmarketshavetakennote,withmorethanhalfoflistedinsurancecompaniestradingbelowbookvalueoverthepastyear.6

Amongothers,weseefivemainforcesdrivingchallengesforthepersonalP&Cinsuranceindustry—inflation,newentrants,businessmodelanddistributioninnovation,mobilitydisruption,andanexplosionofdata—whichshouldalsobelookedatasopportunities.

Marginpressuredrivenbyrecord-highinflation

Historically,personalP&Ccarriershavebenefitedfromastableinflationenvironmentthatprovidedthemwithalongerleadtimewhenreactingtomarketchanges.Thatisnolongerthecase.Therapidriseininflation—asix-percentage-point

6“Creatingvalue,findingfocus:GlobalInsuranceReport2022,”

McKinsey,February15,2022.

GlobalInsuranceReport2023:ClosingthepersonalP&Cprotectiongap7

Exhibit4

–9p.p.2

6

4

Inlation

rate,%

9

2

1

–6p.p.

7

1

–5p.p.

2

1

increaseonaverageinflationacrossregions

worldwidebetween2020and20227—isputting

pressureoninsurers’margins,resultingin

contractingorevennegativeunderwritingresults

acrosstheindustry,includingforsomemarket-

leadinginsurers.

IntheUnitedStates,theincrementalimpactof

inflationonpersonalmotorandpropertylinesis

estimatedat$21.8billion8InGermany,P&Ccosts

perclaimhavelargelybeeninlinewiththeconsumer

priceindexforthepast20years,thoughthere

hasbeenasteeperincreaseinclaimscostsrecently.

Theadverseeffectofinflationhasbeenfurther

compoundedbyinsurers’inabilitytoimprovetheir

expenseratios.From2016to2021,personalP&C

carrierssawa5percentimprovementintheir

operatingexpenses.However,thisimprovement

wasoffsetbya7percentincreaseinITspending

duringthesametime,drivenmainlybydigitalization

effortsandtechsystemmodernization9Itissafe

tosaythatinsurancecarriersarebeinghitfromalldirections,withincreasedpressureonboththeir

lossandexpenseratios.

Someinsurancecarriersrespondedtoincreased

marginpressurein2022byraisingpremiums,

butthismovehasnotbeenenoughtoprotect

profitability.InseveraltopEuropeanmarketsand

intheUnitedStates,P&Cnetcombinedratios

increasedfromthefirstquarterof2021tothe

secondquarterof2022,asdidinflation(Exhibit4).

Inlationhikeshaveafectedinsurancecarriers’1-netcombinedratio(CoR),1%

UnitedStates

Q12021Q22022

Q22022

SpainQ12021

15

–4

–7p.p.

9

+7p.p.

+9p.p.

Note:Figuresmaynotsum,becauseofrounding.

1Country-levelnonlifeinsurance.

2Percentagepoints.

Source:EuropeanInsuranceandOccupationalPensionsAuthority(EIOPA);OECD

McKinsey&Company

productivity.

Q22022

Italy

Q12021

13

7

+6p.p.

France

Q12021Q22022

6

5

+5p.p.

7“WorldEconomicOutlookdatabase:October2022,”InternationalMonetaryFund,accessedFebruary16,2023.

8KiaJavanmardian,SebastianKohls,GavinMcPhail,andFritzNauck,“Counteringinflation:HowUSP&Cinsurerscanbuildresilience,”McKinsey,August25,2022.

9McKinsey360°Insurancebenchmark;McKinseyGlobalInsurancePools.

8GlobalInsuranceReport2023:ClosingthepersonalP&Cprotectiongap

GlobalInsuranceReport2023:ClosingthepersonalP&Cprotectiongap9

Retailers,technologycompanies,andallsortsofindustryleadersareemergingasnewcontendersintraditionalpersonalP&Cdistribution.

Whileallinsurersarefeelingthemarginpressure,notallareequallypositionedtothrive.Thelimitednumberofinsurancecarriersthathavedonerelativelybetterhavesteppedupnotjustinimprovingtheiroperationalperformancebutalsoinreducinglatencybetweenexposureanddetectionandresponsetoweeksratherthanmonths.Theincreasedagilityacrossfunctions(claims,actuarial,pricing,andsoon)requiresrapiddataaccessandprocessingtoenablethesynthesisofmultipletrendsandlossindicators.Unfortunately,thisisnotanaturalmuscleforinsurersgiventhatmosthavehistoricallyoperatedinsilos.

Newentrantscapturingtheembeddedinsuranceopportunity

Retailers,technologycompanies,andallsortsofindustryleadersareemergingasnewcontendersintraditionalpersonalP&Cdistribution.Thesecompetitorsarepartneringwithinsurancecarriersordevelopingin-houseinsurancesolutions,seekingtofurthermonetizetheircustomeraccessandrelationships.

Forexample,retailersareincreasinglyembeddinginsuranceinthesalesprocess—andevenpostsaleservices—ofelectronicsproducts;someareevenbuildingtheirowninsuranceorbrokeragecompaniestofurtherexpandtheirinsurancebusinessbeyondtheinitialembeddedinsurancesale.ThedisruptionisparticularlyrelevantinembeddedcarinsurancebecauseOEMsevolvebybroadeningtheirserviceofferingsforcustomers

andwieldingtheirnaturaladvantages:anetworkofconnectedvehiclesandavasttroveof

data,whichcanenableOEMstooffer“noquote”productsembeddedinthecarsale.

Businessmodeland

distributioninnovation

Someincumbentsandinsurtechsaredrivingbusinessmodelinnovationbytreatingnewindustryentrantsasabusinessgrowthopportunity.Indeed,anumberofinsurtechsaroundtheworldaredevelopingtailoredvaluepropositionstobecomethepreferredproviderfornoninsurersseekingtoofferinsurance(thatis,B2B2Bpropositions).Leadersinthismodelprovidebusinesseswithintegratedsolutionsthatcanincludearangeofdistributionchannels,salesplatforms,optimizedservices,andcustomer-servicingportals.Thesesolutionsalsobenefitfromaquickandeffectiveproductdevelopmentcycle,creatingwhite-labeledproductsthatcanbemarketedandsoldunderthepartner’sownbrand,supportedbytheinsurer’sadvancedunderwritingcapabilitiesandautomatedclaimsprocesses.

Simultaneously,ecosystemscontinuetogrowinrelevanceasadistributionchannel,evenifbroadadoptionisstilltobeprovenglobally.Weestimatethatmorethan30percentofglobalpersonallines’P&Cpremiumswillbedistributedviaecosystemsby203010Assuch,someplayers(namelyinAsia)aremakingsignificanttechnologyinvestmentstooffercustomersandindustriesacompletesetoffunctionalitieswithinadigitalecosystem,

10SylvainJohansson,AndyLuo,ErwannMichel-Kerjan,andLedaZaharieva,“Stateofpropertyandcasualtyinsurance2020,”McKinsey,April22,2020.

whichinturnprovidesinsurersaccesstogranulardatathat,withthehelpofAI,canenablegreaterpersonalizationofproductofferings,advice,andpricing.

Significantmobilitydisruption

DespitesignificanteffortsbypersonalP&Ccarrierstodiversifyfrommotorinsurance,itstillrepresentsmorethan60percentofthemarketandisthemostrelevantlineofbusinessformostP&Ccarriers.PersonalP&CcarriersareeyeingmobilitytrendsthattheMcKinseyCenterforFutureMobilityestimatescouldaffect25to30percentofmotorpremiumvolumes.

Overthepast20years,theshareofmotorinsurancehasbeenstableglobally,thankstosignificantgrowthindevelopingAsia,aswellasintheMiddleEastandAfrica(Exhibit5).ThegrowthofAsia’seconomies,particularlyChina,hascontributedtoaburgeoningmiddleclassthatpushedcarsalegrowthupbyaCAGRof

4percentfrom2010to202111Meanwhile,LatinAmericasawthemostsignificantdecline,drivenbyadropinpersonalvehicleuseinBrazil,asdemonstratedbyadeclineinnew-carregistrationsbyaCAGRof5percentoverthesameperiod12Ingeneral,personalcarriersindevelopingeconomiesstillhaveaneasierroadtogrowthinthethird-partyliabilityproducts

Exhibit5

Motor’sshareofpersonalpropertyandcasualtyhasbeenrelativelystablegloballybutvariesbyregionalmaturity.

ShareofmotorintotalpersonalP&C,1%

100

EmergingAsia2

80

NorthAmerica3

MiddleEastandAfrica4

Global

60

EasternEurope5LatinAmerica6

DevelopedAsia7

WesternEurope8

40

20002005201020152022E

Note:Metricsconsistofreportedandestimateddata.1Propertyandcasualty.2IncludesChina,India,Indonesia,Malaysia,Philippines,Thailand,andVietnam.3IncludesCanadaandtheUnitedStates.4IncludesEgypt,Kenya,Morocco,SaudiArabia,SouthAfrica,Tunisia,Türkiye,andtheUnitedArabEmirates.5IncludesBulgaria,Croatia,CzechRepublic,Hungary,Poland,Romania,Russia,Serbia,Slovakia,Slovenia,Ukraine.6IncludesArgentina,Brazil,Chile,Colombia,Mexico,andPeru.7IncludesAustralia,HongKongSAR,Japan,Singapore,SouthKorea,andTaiwanChina.8IncludesAustria,Belgium,Denmark,Finland,France,Germany,Greece,Ireland,Italy,Luxembourg,Netherlands,Norway,Portugal,Spain,Sweden,Switzerland,andtheUnitedKingdom.

Source:McKinseyGlobalInsurancePools

McKinsey&Company

11“PassengerandcommercialvehiclesalesinChinafrom2010to2021,”Statista,February3,2023.

12Brazilianautomotiveindustryyearbook2022,BrazilianAssociationofAutomotiveVehicleManufacturers(ANFAVEA),2022.

10GlobalInsuranceReport2023:ClosingthepersonalP&Cprotectiongap

GlobalInsuranceReport2023:ClosingthepersonalP&Cprotectiongap11

7%

59%

19%

15%

thatarecompulsoryinthesemarketsandalsoinmorecomplexcombinationsofcasualtyandcollision(CASCO)