The EU-ASEAN Business Council (EU-ABC) has published a paper on the insurance industry in southeast Asia, including recommendations for the continued development of a “world-leading and resilient insurance market”.

The paper was released at the council’s first meeting with ASEAN (Association of Southeast Asian Nations) finance ministers and central bank governors in Kuala Lumpur on Saturday

Insurance penetration in the bloc reached 3.2% in 2013, above the emerging market average of 2.7%.

EU-ABC Executive Director Chris Humphrey says expanding the insurance industry in the ASEAN bloc will have “significant advantages” for the region.

“The insurance industry plays an important role in ASEAN’s financial markets,” he said. “It provides financial protection for people, business and governments, and is a source of long-term and stable finance.

“Much of this finance is invested in long-term infrastructure projects, helping ASEAN meet its infrastructure needs.”

There are 25 large European-based insurance and reinsurance companies working in ASEAN member states, but the EU-ABC believes this could grow with the dismantling of barriers to market access.

The paper calls for removal of foreign ownership restrictions, the ability to transfer and repatriate capital, profits and dividends and unrestricted access to cross-border reinsurers that meet solvency requirements.

It also calls for the creation of a “predictable and transparent regulatory regime to encourage long-term investment decisions” and the deepening of local capital markets “to ensure the insurance industry can meet its long-term funding and investment requirements”.

The EU-ABC and the EU-Malaysia Chamber of Commerce and Industry will jointly host the annual EU-ASEAN Business Summit in Kuala Lumpur on August 23.