The insurance industry in Asia is at the crossroads. On one hand, the industry grapples with slowing growth, varying profitability, and market fragmentation. On the other hand, it is witnessing a surge in innovation, particularly in response to emerging risks such as climate change and cyber threats, along with a rapidly urbanizing population.
Global insurers are increasingly focusing on Asia as a growth engine, recognizing its pivotal role in the global economy. Despite this, property and casualty (P&C) insurance in Asia represents only 20 percent of the global premium share, with penetration remaining stagnant at 1 to 2 percent.
The challenges facing the sector are further compounded by deteriorating profitability, an increase in catastrophe claims, and the rise of new risks, such as cyberattacks and electric vehicles. To navigate the new and optimize the core, P&C insurers must adopt a dual-track approach. They must proactively engage with emerging opportunities and risks while optimizing core operations for efficiency and profitability.
Asia’s life insurance sector has experienced a deceleration in growth, challenging its trajectory. There is a growing divide between developed and emerging markets, and insurers are recalibrating their strategies to adapt to changing market dynamics. At the same time, the region’s growing middle class, technological advancements, and evolving health and retirement sectors offer immense opportunities to revive growth and lean into whitespaces.
By embracing innovation, improving efficiency, and addressing emerging challenges, insurers can navigate the evolving Asian insurance market. In this two-part report, we delve into the state of the Asian insurance landscape, offering insights and imperatives tailored for both the P&C and life insurance sectors.
Download the report, Global Insurance Report 2023: A paradigm shift in Asia life insurance (PDF–5MB).
Download the report, Global Insurance Report 2023: The future of Asia P&C insurance (PDF–8MB).