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Anamika Gupta

Ques: 5 Comment on Insurance Industry landscape in Asia- Pacific

Introduction:
The insurance industry is one of the potential industries in the emerging markets of Asia-Pacific region such as China, India,Thailand, Taiwan, Malaysia and other countries. The rising personal disposable income due to improving economic conditions which has  the insurance players to divert their attention in the growing market of Asia-Pacific region. In addition, China and India have ongoing infrastructure projects with massive amount of investment which will contribute to new business development in the line of property and commercial insurance.
Asia-Pacific presents significant opportunities for insurers seeking growth, as many markets in the region have enlarged due to an increasing number of consumers looking to purchase insurance. Additionally, the regulatory systems across much of the region have become more sophisticated.

 

key challenges and opportunities by region

Asia-Pacific

·         Slowing economic growth rates and low interest rates are the primary challenges, while rising individual wealth and aging populations create opportunities, especially for new products.

·         Product development and distribution must be evaluated as regulatory changes open the savings market to new entrants.

·         Evolving regulations and their region-by-region differences will complicate market opportunities.

·         Data analytics can improve competitive standing, and identify areas to reduce expenses.

 

Discussion:

According to Selina Harrison, Economic growth, a growing middle class has created significant opportunities for life insurers in the region to serve the financial needs of a wealthier, older customer base.  Growth and opportunity in the Asia-Pacific insurance market will come with risks and challenges.
Rising wealth and increasing populations across the region are, in addition to non-life insurance, creating demand for conventional products like retirement and health insurance.

 Conclusion:

The forces of change and the challenges and opportunities they create will require insurers to determine how to achieve profitable growth and best position their organizations to remain viable. There are various opportunities for insurance industry  but there are also some challenges faced by insurance industry in Asia-Pacific. Slowing economic growth rates and low interest rates are main challenges faced by insurance industry in Asia-Pacific. Growing population and individual wealth are some of the opportunities for insurance industry in Asia –Pacific.