INSURANCE AUSTRALIA GROUP LOOKS TO ASIA FOR GROWTH.

SYDNEY, Mar 2 Asia Pulse - The Insurance Australia Group Ltd (ASX:IAG) is hoping the Asian market will provide the faster growth that is no longer available in Australia's more mature and consolidated insurance industry.

However, Australia's biggest general insurer will be trying not to repeat its experience in the UK, where it lost $A113 million ($US71.92 million) selling non-core operations and restructuring the business in the first half of 2008/09.

"We do believe that Asia represents the best growth platform that's above system growth for this organisation," Chief executive Michael Wilkins told AAP this week.

"The Asian market is competitive but we believe in Malaysia and India, and we know in Thailand, that we can build a competitive offering at a price that gives us an adequate return."

IAG, which last week reported a 96 per cent decline in net profit to $4 million for the first half, already has 42 per cent of Australia's home and motor insurance market.

It shares the market with Brisbane-based bank and insurer Suncorp-Metway, and Germany's Allianz, the world's biggest property and casualty insurer.

Mr Wilkins said it was difficult to grow faster than the economy in Australia's mature insurance market, and the local players needed to differentiate themselves through better customer service.