Velocity’s $525M Move, PRI's Growth Potential, Low-Code Revolution

Happy hump day, !

This week we dive into the underutilized PRI market. With only 1-5% of foreign direct investment (FDI) in developing markets insured it presents a significant opportunity for expansion.

Insurers are leveraging low-code platforms to automate claims processing, enhance customer experiences, and ensure compliance with evolving regulations.

Global life insurance premiums in emerging markets are poised to slow down from 7.2% to 5.7% in 2025, with advanced markets expecting moderate growth, remaining at around 1.5%.

Countries that have made limited progress in creating a conducive business environment during this period have encountered persistently low investment rates, resulting in stagnation or even contraction in economic growth.

— Insurance 150 Team

In this Issue:

• Data Dive

• Trend of the Week

• Market Movers

• Insurtech Corner

• Deal of the Week

• Macroeconomics Corner

• Interesting Articles

• Tweet of the Week

📚 Data Dive

Political Risk Insurance – Protecting Investments in Uncertain Times

Political Risk Insurance (PRI) has become a cornerstone for multinational businesses venturing into volatile markets. Covering risks like expropriation, currency inconvertibility, political violence, and contract breaches, the global PRI market expanded from $184.7 billion in 2010 to $317 billion in 2018. Providers include multilateral agencies like MIGA, national Export Credit Agencies, and private insurers such as Lloyd’s syndicates. Despite its growth, PRI remains underutilized—only 1-5% of foreign direct investment (FDI) in developing markets is insured, presenting a significant opportunity for expansion.

Key sectors like finance and industrials are particularly exposed to political risks, grappling with sanctions, trade wars, and supply chain disruptions. PRI policies are adapting, leveraging digital tools to offer tailored coverage and streamline claims. The energy transition adds complexity, with climate regulations driving demand for specialized insurance. Case studies from Ghana, Brazil, and Indonesia highlight PRI’s value, showing reductions in country risk premiums of up to 4.07% and improved credit ratings for insured investments.

PRI is not just a safeguard but a growth enabler, making high-risk investments financially feasible. With major FDI-dependent economies like Singapore and Belgium relying on PRI to attract capital, this niche insurance product is increasingly critical in mitigating risks and fostering global economic resilience.

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📈 Trend of the week

Emerging markets: Life insurance premiums to decelerate in 2025

Global life insurance premiums are experiencing divergent growth trends, with emerging markets expected to see a moderation in growth rates and advanced markets remaining steady but subdued. In emerging markets such as China, India, and Latin America, premium growth is forecasted to decelerate from 7.2% in 2024 to 5.7% in 2025. While these regions continue to benefit from tailwinds like an expanding middle class and diminishing pension provisions, the slower growth trajectory reflects a natural cooling from previous rapid expansion. In advanced markets, growth remains steady at 1.5% annually through 2025, highlighting the mature nature of these markets and the limited scope for explosive growth. Globally, life premium growth is expected to stabilize around 2.9% in 2024, tapering slightly to 2.7% in 2025, emphasizing a broader trend of market normalization.

This moderated growth presents opportunities for insurers to recalibrate their strategies, focusing on operational efficiency and customer-centric innovations to sustain profitability. In emerging markets, efforts to expand financial inclusivity, such as leveraging digital banking channels in regions like Brazil, can help insurers maintain a competitive edge by reaching underserved populations. Advanced markets, meanwhile, can benefit from investments in core system modernization and automation, enabling insurers to streamline processes and respond effectively to changing customer needs. 

📊 Market Movers

🛡️ Insurtech Corner

Low-Code, High Impact: Streamlining Insurance Operations

In the fast-paced world of insurance, agility is key. Enter low-code development—a visual approach that minimizes hand-coding, enabling rapid application creation. Insurers are leveraging low-code platforms to automate claims processing, enhance customer experiences, and ensure compliance with evolving regulations. By utilizing pre-built components and drag-and-drop interfaces, companies can swiftly adapt to market changes without the need for extensive IT resources. This approach not only reduces operational costs but also accelerates time-to-market, providing a competitive edge in an industry where efficiency is paramount.

Moreover, low-code solutions facilitate seamless integration with existing databases and systems, enhancing data handling and operational workflows. They also empower non-technical staff to participate in application development, fostering innovation across departments. As the global low-code development platform market continues to grow—projected to reach $45.5 billion by 2025—insurers adopting these technologies position themselves at the forefront of digital transformation, ready to meet the evolving demands of the modern consumer.

🤝 Deal of the Week

Ryan Specialty's $525M Velocity Play

Ryan Specialty just dropped $525 million to acquire Velocity Risk Underwriters, a specialist in catastrophe-exposed property insurance, from Oaktree Capital. The move boosts Ryan Specialty’s cat portfolio significantly, focusing on middle-market businesses across Florida, Texas, and the Southeast. While Velocity generated $81M in revenue last year, its E&S carrier, Velocity Specialty Insurance Company, will transfer to FM Insurance. For Ryan, this isn't just an underwriting play—it's a tech and analytics upgrade wrapped in a cat-risk package. Expect more scale, tech-driven underwriting, and claims precision in the wholesale market.

🌎 Macroeconomics Corner

Anatomy of Economic Growth: The Role of Investment Rates

An analysis of the period from 2013 to 2023 reveals a clear correlation between investment rates—both private and public—and GDP per capita growth. Countries that experienced higher investment rates have demonstrated stronger economic performance, fostering wealth creation and improving the standard of living for their populations. Notable examples include Ireland, China, India, Vietnam, and Ethiopia. These nations share a common trait: proactive efforts to enhance their policy environments, streamline business regulations, and attract significant levels of Foreign Direct Investment (FDI).

Conversely, countries that have made limited progress in creating a conducive business environment during this period have encountered persistently low investment rates, resulting in stagnation or even contraction in economic growth. Examples of such underperformance include Ukraine, Argentina, and Brazil, where structural challenges and policy inertia have hindered economic advancement.

📰 Interesting Articles

🐣 Tweet of the week