"This book encompasses many of the most relevant insights on the industrysustaining growth is the most pressing topic for all insurers in the region today. Joe and Stephan have lived up to their reputation as the most sought–after thought leaders in the industry. A must–read!"
Peter Ma, Chairman and CEO, Ping An
"The life insurance business has evolved interestingly, with Asia occupying the central stage both in terms of growth and innovation. We have lessons from different parts of the world, and this book by Stephan and Joe provides deep insight and knowledge for managing one′s life insurance business."
Sandeep Bakhshi, CEO, ICICI Prudential
"Asia represents an unprecedented opportunity for value creation in life insuranceand Stephan and Joe have captured both the current and emerging opportunities and challenges extremely well. This is a book written by real insiders, rich in detail and exampleshighly recommended!"
Sachin N. Shah, COO, MetLife Alico Japan
"Across the region, local and multinational insurers are all faced with new challenges, including changing customer preferences, maturing distribution channels, and heightened competition. All these trends highlight the difficulty for executives to sustain growth in the next decadethis book captures perfectly the mood in the industry."
Nam Gyu Cha, President and CEO, Hanwha Life Insurance
"Yet again another insightful contributionthe last edition was an enjoyable read, and the authors have again given us their latest practical insights into the industry. The range of topics and the depth of experience are truly impressive. Congratulations!"
Bernard Chan, President, Asia Financial Holdings and Asia Insurance
"Stephan and Joe have worked with most of the leading Asian insurance players and have observed the industry evolve across many markets. Their knowledge and practical insights into the industry are captured in Life Insurance in Asia, making this a must–read for industry executives."
Ajay Srinivasan, Chairman, Birla Sun Life
What Is New in This Second Edition? xii
CHAPTER 1 Emerging Themes in Asia 1
A New Paradigm 3
Asia as the Emerging Powerhouse in Insurance 4
A Heated Battle between Multinationals and Locals 11
The Changing Face of Distribution 22
Driving Innovation in Insurance 35
Changing Product Mix to New Needs of Asian Consumers 40
CHAPTER 2 China: Yes, Size Does Matter 57
A Winding Road to the Top 59
Rise of the Chinese Giants 62
Foreign Multinationals in China: Scaling the Great Wall 66
Key Challenges to Overcome in China 71
The Future: Growth in Uncertainty 84
CHAPTER 3 India: Dance of the Elephant 87
Dawn of a New Era 89
Changing Landscape of the Life Insurance Market 93
Path to Sustainable Growth in the New Normal 96
The Future: India Life Insurance 2.0 105
CHAPTER 4 Japan: A Giant Awakening? 107
Continued Stagnation in the Overall Market 110
Shifting Competitive Landscape 112
Emerging Opportunities in Certain Product Submarkets 121
Increasing Scope for Innovative Sales Models 129
The Future 133
CHAPTER 5 South Korea and Taiwan: An Increasingly Localized Game 135
Highly Mature Markets 138
Mismatched Book of Assets and Liabilities 139
Entrenched Position of Leading Domestic Players 140
Foreign Players Fighting to Gain Share from Local Incumbents 141
South Korea: Solid and Resilient 143
Taiwan: Darkness before Dawn? 152
CHAPTER 6 Hong Kong and Singapore: Refusing to Mature 165
Profitable and High–Growth Contributor 170
Small but Stable Market for Latecomers 171
Attractive Asian Base for Multinational Insurers 172
Hong Kong: The China Opportunity Offshore 173
Singapore: Structured and Profitable 185
CHAPTER 7 Southeast Asia: The Underappreciated Growth Engine 191
Increasing Competition between Foreign and Local Players 195
Tailored Products for Market Niches 199
Channel Upgrades to Reach More Customer Segments 200
The Future: Reaching Scale 203
Indonesia: The Next Growth Frontier 203
Vietnam: Little China? 207
Looking Forward: Major Challenges Ahead 210
CHAPTER 8 The Road Ahead: A New Paradigm for Life Insurance in Asia 213
Changing Context: A Much More Difficult and Nuanced World 213
Seven Priorities for Winners 213
Sustaining Growth in the Next Decade 222
Reference Sources 223
DR. STEPHAN BINDER is a director in McKinsey & Company′s Shanghai office and leader of the Insurance Practice in the Asia–Pacific region. He has been with McKinsey since 1995 and is an advisor to many of the region′s leading insurance companies and banks, with a long track record of successfully working with leading local companies and multinationals in Asia, Europe, and North America. Stephan has been published widely and is a prominent speaker at conferences on financial services topics. A German national, he holds a PhD from the University of M??nster and a master of business administration and economics from the Witten/Herdecke University.
JOSEPH LUC NGAI is the managing partner of McKinsey & Company′s Hong Kong office, and leads McKinsey′s life insurance practice in Asia. He has advised several leading domestic and multi– national insurers and banks in Asia, counseling many of them through multi–year transformation journeys. He is a sought–after speaker on financial topics, and has appeared frequently at industry conferences as well as in the media. A Hong Kong native, he holds an AB from Harvard University, a JD from Harvard Law School, and an MBA from Harvard Business School.