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The money map

China and the UK have been the major growth hotspots for global business over the past two decades, according to new analysis. The footprint of multinationals is expected to expand further still by 2020, prompting a growth in demand for international insurance solutions and not just from large corporations.

 

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China experienced a 2619% increase in the number of foreign affiliates (see map above for definition) active in the country between 1992 and 2010, according to AGCS analysis, which charts the percentage growth in 11 major markets, as determined by UN Conference on Trade and Development (UNCTAD) data.

The country saw the number of active foreign affiliates active surge from 15,966 in 1992 to 434,238 in 2010, ranking it as number one for growth overall. Meanwhile, according to the data the UK had more active foreign affiliates in the country than the US in 2010 having posted 1232% growth over the same period, resulting in 45,466 enterprises in total.

Other countries experiencing particularly robust growth in foreign affiliates included France (457%) and Malaysia (377%) while Brazil was the only country in the rankings to experience a decline in foreign affiliates in the country during the period analyzed (4,547 in 2010 compared with 7,110 in 1992). The findings formed part of an AGCS presentation on the future of international insurance solutions (IIS) at the recent annual AIRMIC conference, one of the most important events in the calendar for the UK insurance and risk management industry.

Speaking during the presentation, Vinko Markovina, who heads the IIS unit at AGCS said global trade will continue to expand in future, as will demand for IIS, which are designed to meet the insurance challenges faced by companies with multi-location international exposures. However, such solutions are no longer expected to be the exclusive preserve of large corporates in developed markets in the future.

According to UNCTAD the number of transnational corporations (see
map)
totaled 104,000 in 2010 and is forecast to grow by 40% to 140,000 by 2020. A significant portion of this growth is expected to come from small and mid-market businesses expanding globally and emerging markets. To find out more about IIS visit http://www.agcs.allianz.com/services/international-insurance-programmes/.