The top 20 public insurers in Asia have sustained their momentum from 2022 going into the current year, attributable to increased insurance awareness in a post-pandemic environment and an economic rebound in most markets.
The latest research from GlobalData found that the leading insurance companies in the region grew by 8.2% in terms of average premium earned and experienced a marginal 0.7% rise in total revenue. Fifteen of the top 20 insurers also reported a YoY growth in premiums earned in 2022.
“In 2022, roadblocks for insurers came in the form of IFRS 9 implementation and risk-based capital regulations, the translation of ESG/net-zero factors into investment approaches, and the establishment of viable hedging strategies in the face of elevated expenses and restricted access to hedging instruments. But they sailed through commendably,” GlobalData company profiles analyst Murthy Grandhi said.
Dai-ichi Life has been one of the more notable performers across the region, touting an impressive 17.6% surge in premium earnings that came from the rise of policy reserve reversals in reinsurance transactions aimed at reducing risks.
T&D Holdings of Japan, which has Taiyo Life, Daido Life, and T&D Financial Life under its wing, also recorded increased income from insurance premiums. Of note, T&D Financial Life reported a 94.7% increase in income from insurance premiums, coupled with a positive income growth across the whole group revenue at 11.5%
Despite its parent company’s stock troubles, Hanwha Life did see some good news from its insurance revenue, with the figure climbing by 21.4% due to a 26.3% growth in premium income.
On the other end of the spectrum, some insurers saw decreases in earned premiums. Japan Post and AIA Group recorded declines of 1.6% and 1.5%, respectively, leading to an overall reduction in revenue. AIA’s total weighted premium income decline came from a decrease in premiums in the Thailand market, falling off by 5.9%.
“Post-COVID-19, customers seek enhanced healthcare coverage and expect more from insurers in the APAC region. In response, insurers are shifting focus to protection-oriented offerings, investing in healthcare, clinics, hospitals, and third-party administrators. Building comprehensive healthcare ecosystems and partnerships is crucial for future success,” Grandhi said.
“Addressing the effects of the current interest rate environment on capital markets is crucial,” Grandhi said. “After a prolonged period of low rates, insurers now face potential impacts of rate hikes and macroeconomic uncertainties. These considerations affect product design and capital allocation. The first half of 2022 saw unexpected challenges, with negative returns in equity and fixed income markets, and significant currency depreciation against the US dollar. Despite these issues, the Asia-Pacific insurance market remains attractive globally.”
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