Life insurance written premiums in the Asia-Pacific region is expected to grow in 2023, a new report by GlobalData revealed. Written premium is set to rise from $1.2 trillion in 2019 to $1.5 trillion. In other words, it will grow at a compound annual growth rate (CAGR) of 4.9 percent during the period.
According to GlobalData, the growth in written premiums will be attributed to an aging population in the region, along with a growing middle class with a disposable income.
In this regard, Pratyusha Mekala, Insurance Analyst at GlobalData told the media, “Despite the disruption due to the Covid-19 pandemic, several countries are now seeing gradual recovery following the lifting of lockdown restrictions. In Singapore, positive economic activity from Q3 2020 aided in recovery in demand for life insurance products. Similarly in Hong Kong, total premiums of long-term in-force policies increased by 5.1 percent year-on-year during the first three quarters of 2020.”
“Technology advancements is another area that has gained more prominence. Due to the social distancing norms and regulatory push, an increasing number of insurers are shifting to digital platforms. In June 2020, Manulife Hong Kong launched a virtual face-to-face agency sales platform for most of its insurance product offerings,” she added.
Merger and acquisition (M&A) activities in the reinsurance market in the Asia Pacific will pick up pace in 2021, according to Clyde & Co Hong Kong partner Joyce Chan. It is also reported that investor’s appetite will bounce back in the Asia Pacific at a much faster rate when compared to other regions.