Ning

Nov 23, 2023

Reinsurance News In a recent interview with Reinsurance News, Daisy Ning, Head of Life & Health Re APAC excluding China at Swiss Re, provided valuable insights into the insurance landscapes of various Asia-Pacific (APAC) markets. Singapore: Steady Growth and Changing Consumer Awareness “Singapore is an interesting market. So, it’s been on this steady growth, and in the Southeast Asia region, it is also a relatively more developed market,” noted Ning. Despite facing challenges such as high inflation and economic slowdown, the Singaporean insurance market rebounded by 7% in 2023. The growth is primarily driven by popular savings products, especially the Indexed Universal Life (IUL) product. Ning highlighted the increased consumer awareness of insurance products and protection needs during the COVID era, prompting collaboration with the industry to offer innovative protection ideas. India: Low Penetration, High Potential Ning emphasised the low penetration rate in India, presenting significant opportunities for sustainability and expansion. “India is not a heavy savings market as some of the Southeast Asia market. So, the term mortality product is very, very popular.” The market, however, faces operational challenges, prompting the need for increased automation, Ning noted. Ning highlighted India’s leadership in technology and the establishment of a tech hub in Hyderabad, indicating a promising future for technological advancements in the insurance sector. China: Growth, Contractions, and Regulatory Responses In China, Ning acknowledged the significant growth in the life and health market over the past decade, followed by a contraction during COVID. The rise of critical illness (CI) products played a pivotal role, driven by regulatory changes promoting sales. However, evolving consumer behaviours led to regulatory interventions, impacting product attractiveness. Despite a sluggish economy, Ning expressed optimism, noting the market’s gradual recovery and China’s rapid technological advancements. She remarked, “Leverage technology to sell insurance… gamification is used in reaching different customer groups.” Australia: Superannuation Consolidation and Opportunities for Tailored Solutions “The consolidation of Superannuation Funds has resulted in fewer entities in the market,” stated Ning. As funds grow in size, competition intensifies, leading to contractions in retail businesses. However, this scenario creates an opportunity for insurers to tap into unmet needs with tailored products, providing a potential avenue for growth and innovation, Ning noted. Japan: Trends and Potential Strategies in a Stable Market Ning highlighted that in Japan, “Hospital cash plans and cancer insurance remain popular, consistent with the past decade’s trends.” She noted the potential rise in interest rates after a period of stability, presenting opportunities for reinsurers to devise new strategies and financial instruments to help insurers effectively manage emerging interest rate risks. Share this: