Asia-Pacific Insurtech Market - Growth, Trends, Covid-19 Impact and Forecats (2021-2026)

Asia-Pacific is one of the diverse markets for insurers. It is a newly emerging and attractive market for insurers as it is home to nearly one-third of the world population, few of the fastest-growing economies in the world such as China which is expecting to be the world's largest economy by 2030, and multiple countries with rapidly expanding middle-class population.

Asia-Pacific region is also experiencing massive technological advancement in the insurance industry. The extremely high expectations of consumers in the region for seamless and personalized digital experiences inspire a great deal of innovation. Firms in mainland China and other markets are experimenting widely - and delivering impressive results - with new products, new distribution models, and new technology. The top performers are both capitalizing on near-term opportunities and establishing a strong foundation for long-term success

Key Market Trends

Non life insurance is Increasing with Higher Rate than the Life Insurance in Asia-Pacific region.

Asia-Pacific region is showing a strong growth rate in premium and insurance premium. The performance is mainly driven by China but is also buoyed by the positive performance in South Korea. However, some mature market in the region such as Japan is struggling due to their rising population age and consumer expectation shift. The penetration rate in China increased from 1.4% in 2013 to 1.9% in 2018. Nonlife insurance is showing rapid growth compared to life insurance in the Asia-Pacific region. The Gross Written Premium (GWP) for life insurance increased by CAGR 4% whereas, the non-life insurance for the Asia-pacific region increased by 7.5% for the same period.

Consumer Preference for Interaction with Insurer is Skewed Strongly towards Digital Medium

The number of internet users in Asia-Pacific reached 2.3bn by the end-2019, although the internet penetration rate of 55% in the region is still lower than the global average of 60%. Most Asia-Pacific consumers (73%) feel that a mobile device is all they need to perform any financial task. Customer expectation for digital interaction and experience from the insurer is growing for the Asia-Pacific region. China leads the way; from mobile payment apps to digital media platforms, Chinese consumers are wholeheartedly embracing innovation at astonishing speed. Chinese insurers are creating new offers and experiences to engage them. The sheer size of China, its physical proximity to other countries in the region, and the ability to leapfrog on the most advanced technology drive both the inexorable rise in expectations and the push toward innovation across the region. In China, Thailand, and Australia, consumers prefer digital channels over traditional agencies by significant margins. In Singapore and Malaysia, however, consumers prefer agents.

Competitive Landscape

More than 335 InsurTech companies are operating in the Asia-Pacific region. According to S &P Global Market Intelligence, China and India collectively have nearly half of the private Insurtech companies in the Asia-Pacific region and have attracted about 78% of Venture Capital investment in the region. With 66 insurtech companies, India has become the second-largest insurtech market in the region. The major player in the region includes ZhongAn Insurance, SIngLife, CXA Group, CoverFox Insurance, Policy Pal, Ins for Renascence, The CareVoice, Policy Street, PaserPolis and AppMan among the others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support