Smriti Pandey: What are the key trends in life and health insurance in the APAC region that contrast with global trends?
Liem Phan: APAC is a diverse and dynamic region with markets at various economic conditions and stages of development. In general, the trends in life and health insurance in APAC are in line with the global ones, but we have also seen some developments that are more prominent in APAC, given the significant demographic shifts and societal changes across the region.
Swiss Re Institute (SRI) projects that the retirement savings gaps for India and China will grow at faster rates annually (10% and 7%, respectively) in the years until 2050, compared with advanced economies like the US (4.7%) and Japan (2.5%), due to rapid population ageing and the growing middle class. The gap for 6 advanced economies (Australia, Canada, Japan, Netherlands, UK, and the US) and China and India was estimated at $106 trillion in 2022, and is expected to reach $483 trillion by 2050.
Insurance plays an important role in building resilience for people’s retirement. The surge in interest rates to 15-year highs will provide life insurance and pension products a tailwind to much better tackle the retirement savings gaps. We expect the life savings market in APAC to expand significantly as a growing middle-class adopts retirement planning and incomes in emerging markets rise. SRI forecasts the life savings premiums of 8 markets (Australia, Hong Kong, India, Japan, mainland China, Singapore, South Korea, and Taiwan) in APAC will reach $1.4 trillion by 2034.
The Indian market will see the highest annual growth rate of 9.5% (CAGR 20242034), followed by mainland China (7%), Hong Kong (6.2%), and Singapore (5.8%). Reinsurers can help life insurers seize these opportunities by freeing up capital, boosting underwriting capacity, and focusing on product innovation for capitallight growth.
This story is from the July 2024 edition of Banking Frontiers.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 2024 edition of Banking Frontiers.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Swedbank leverages data to the hilt
Sweden's Swedbank takes innovation to a different level by collaborating with other competing banks:
Digitization is for customer satisfaction, says Argenta Bank
Belgium's Argenta Bank has designed its digitization efforts to enhance customer experience:
Speed, Safety, Compliance
Brijesh Samantaray, Co-founder, Propelld shares the current trends in the education loans how the company is leveraging technology:
Unique methods in fraud perpetration
When we look at some of the very serious frauds that had taken place in the financial realm, it is evident that the perpetrators are somewhat ingenious:
NBFCs: Elevating Organizational IQ
What is more important than hiring smart people is raising organizational IQ. This topic was discussed in depth in a panel discussion at NBFC's Tomorrow conclave organized by Banking Frontiers. Edited excerpts:
Trustful Transformation
Transformation is no longer only about growth & efficiency. It involves aspects like compliance, security and explainability that are impacting NBFCs. These issues are explored in this panel at NBFC's Tomorrow:
CEO Panel: Connecting Traditional Wisdom with Modern Intelligence
Banking Frontiers organized its annual NBFC Conclave titled NBFC's Tomorrow in August 2024 at Mumbai. Highlights of the first panel discussion:
NBFCs EXPERIENTIAL EVOLUTION, TRUSTWORTHY TRANSFORMATION
Banking Frontiers organized NBFC's Tomorrow, its annual NBFC Conclave, in Mumbai on August 21. The program comprised panel discussions on 5 upcoming opportunities for the NBFC sector, along with presentations, fireside chats and a keynote address. Edited excerpts from the conclave:
Smart ATMs - an indication of a resurgence
Smart ATMs can be the future way of how one may be interacting with a bank and doing transactions:
Personalization scores with HNWI & YP
Ghulam Haidar Rasooli, Chief Financial Officer at Afghanistan based Ghazanfar Bank, reveals the impact of personalization and future roadmap:
