The Asia-Pacific Insurance Sectors : A Company and Industry Analysis (October 2005)

Mergent, October 2005

This report looks at the insurance industries in the Asia-Pacific, with a focus on Australia, China, India, Japan, South Korea and Taiwan
Current Environment - Key Points
- Asia-Pacific insurance markets were plagued by rising negative spreads and price softening over the past six months
However, the financial position of insurers remained stable because of their strong balance sheets
- Asian insurance markets grew strongly, similar to growth in Europe and North America
However, business in some markets such as Japan, Hong Kong and Singapore slowed down
- Asia-Pacific stock markets rebounded in June, boosted by bargain hunting and investors- appetite for risk
India was the best performing market
The Bombay Stock Exchange hit a record high in September, passing the 8,000 mark for the first time
- Hurricane Katrina added more pressure to the softening insurance markets in Asia-Pacific, following a slump in the US economy

Industry Profile - Key Points
- Asia-Pacific's life markets are some of the strongest performers among global emerging markets, with earnings rising and business in the pensions and unit-linked lines booming
- The non-life markets have showed signs of a slowing down due to a softening in premium rates
This may indicate that the sector has passed the peak of the cycle
- Taiwan's second phase of financial reforms to improve the sector's efficiency will result in the number of insurance companies being cut by half through consolidations
- The insurance markets in Taiwan, Hong Kong and Japan are softer than other markets in the region, due to strong domestic competition
Market Trends and Outlook - Key Points
- Bancassurance is becoming more popular as a distribution channel because of the low levels of production and high costs from agents
- Many insurance markets switched their deposit insurance system from blanket guarantee to limited guarantee to cut the high expenditure on bailing out insolvent banks
- Asia's population has become more aware of the need for insurance cover due to increased affluence, the entrants of new players and natural disasters
- The market in the region is likely to remain stable until next year because of strong balance sheets
However, earnings will slow down in the medium term because of the softening of premiums pricing
- Unit linked investment products are likely to become a major income driver replacing demand for traditional life insurance products

Current Environment
- Overview
- Sector Performance
- Performance of Leading
Companies
- Mergers and Acquisitions
Industry Profile
- Industry Overview
- Industry Size and Performance
- Policy and Regulatory
Environment
- Insurers Experience Ongoing
Strain
Market Trends and Outlook
- Bancassurance Continues to
Grow
- Asia-Pacific Markets Reshape
the Deposit Insurance Systems
- Rising Awareness Spurs
Demand for Products
- Market Outlook
Country Profiles
- Australia
- China
- India
- Japan
- South Korea
- Taiwan
Currency Conversion Table
The Scope of This Report
Key References
Comparative Data
Regional Reports Coverage

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