Global insurance market trends
Asia-Pacific insurance outlook
Indefinitely postponing a response to the current market opportunities seems ill-advised, given the chief attraction of the Asia-Pacific market and its remarkable growth rate.
- More people and businesses are equipped to buy insurance and the regulatory systems in many locales have become more sophisticated.
- While insurance penetration in more mature markets is hindered by relatively high saturation, fast-growing developing and emerging markets offer important growth prospects over the long-term.
- Insurers seeking opportunities will need to consider strategies that address the fast pace of local and global regulatory and accounting developments.
- Access to reliable capital sources to support investments in specific regions and developing distribution strategies that take into account consumer buying patterns and demographic trends are other avenues for growth.
Growth prospects in Asia-Pacific
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.
Growth drivers vary on market-by-market basis
Some challenges, of course, remain. Since Asia-Pacific is a highly diverse super-region with respect to different countries' economic development and insurance penetration, the rate and drivers of growth vary on a market-by-market basis. Mature markets, for example, are more saturated.
Developing and emerging markets, on the other hand, offer greater growth opportunities for companies prepared to invest for the long haul.
We anticipate further regional evolution, but not revolution, in Asia-Pacific markets in 2011. Each insurer's strategic prioritization and response to the opportunities presented may reap significant rewards. Early movers may especially benefit by their immediate actions, while the insurers who wait to discern the short-term mistakes of others may similarly attain valuable traction.
Poised for opportunity
Indefinitely postponing a response to the current market opportunities seems ill-advised, given the chief attraction of the Asia-Pacific market and its remarkable growth rate. This alone helps explain why many multinational insurers are either preparing plans for further investment in the region, or are in the thick of implementing them.