A sample of 92 professionals from the insurance sector across
Asia Pacific responded to our survey, providing an authoritative
and wide-ranging examination of the current state of the insurance
market in the region.
The findings of this survey have been grouped into six main
themes that touch on some of the primary opportunities and
challenges facing insurance companies based in, or with operations
in, the region. Those themes are growth, regulation, Solvency II,
risk management, capital and claims.
Overall the results present a contrasting picture reflecting the
diversity of the region and the relative immaturity of the market.
There are tensions between: national protection evidenced by
foreign investment restrictions and the opportunities and need for
growth; the need to keep regulation light to facilitate growth, yet
tight to protect the market and to keep pace with Europe and the
rest of the world so as to discourage regulatory arbitrage, and
between increasing competition and the higher costs and regulatory
burden of Solvency II for European head quartered insurance groups
and that local players without those constraints are trying to grow
market share ahead of profitability and can pay higher prices on
80+% say that Indonesia, Vietnam and Malaysia have significant
or very significant growth prospects in the insurance sector over
the next two years, trailing only China and India. The common
characteristics of these five countries are: high population, a
relatively immature market and high barriers to entry in the form
of the regulatory regime and foreign investment restrictions.
61% say that over regulation is a problem in their jurisdiction;
however 80% think that a regime akin to Solvency II is desirable in
Asia Pacific which would necessarily entail more regulation.
75% think that regulatory compliance has been given greater
prominence in respondents' organisation operations in the
region over the last 12 months. v
51% say expansion is the main strategic objective that will
require more capital over the next two years and 33 % expect
regulation will trigger more capital.
47% foresee over the next 12 months an increase in the number of
claims activity and 32% expect a corresponding increase in claims
Contractors and principals should ensure they have appropriate insurance coverage instead of relying on indemnity clauses.
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