An Asian Insurance Report Focusing on India and China
An Asian Insurance Report Focusing on India and China: Examine Business Opportunities, Trends and the Competitive Landscape
DUBLIN, Ireland-(Business Wire)-Research and Markets has announced the addition of the "Asian Insurance Focus: India & China" report to their offering.
Globalization is the key source which is bringing about an "irreversible transformation" in the Asian insurance market. India and China are "dynamically" driving the growth of insurance markets in Asia and the outlook for this industry in the region is "sanguine" despite short-term uncertainties.
Asia is becoming an important growth engine for global insurers. The changing socio-economic dynamics present attractive opportunities. According to a latest research report from HSBC, in order to be long-term winners, life insurance companies in Asia need to diversify their income streams such that at least 25% of earnings are sourced overseas, while maintaining a dominant position in the domestic market.
Many Asian financial services companies have exceeded the overall growth rate for their domestic economies and are therefore looking to expand globally or invest their shares in new markets. Another trend predicted by PwC, was that intra-Asian trade would continue to increase, particularly as the West decreased its investment in this region. The increasing wealth and educational development in Asia, has built a good foundation for the development of financial services.
Major Driving Factors:
- Globalization
- Deregulation which is opening up the markets
- Cheaper and more effective distribution channels
- Ongoing industry consolidation
- Increment in the policy holder firms
- Boost in Merger and Acquisitions activities
- Changing socio-economic dynamics
- Market offering wider margins
- Unique combination of size, age profile and growth prospects
- Many more
Major Issues, Trends and Opportunities:
- Continuous increment in intra-Asian trade
- Need for diversification in the income streams
- Rise in selling investment type products like annuities
- Chance to compete directly with financial services companies
- Focus on paying out more in claims
- Drastic increment in marine and cargo insurance sectors
- Developments in countries, who were closely regulated by their government
- Lack of proper agent quality
- Change in the distribution method
- Difficulties in building networks and brands
- Hindrance in expansion in some of the emerging markets
- Risk management concerns in insurance companies
- Global Expansion
- Transformation in the organizational system to win customer loyalty
- Weak equity markets
- Impact of sub-prime
- Regulatory and market obstacles in the emerging markets