MSIG Asia eyes 2029 growth with digital push and emerging market focus

Areas of strategic focus outlined as general insurance market expected to grow

MSIG Asia eyes 2029 growth with digital push and emerging market focus

Cyber

By Roxanne Libatique

MSIG Asia, a core component of the MS&AD Insurance Group’s international operations, has unveiled its strategic growth plans through 2029.

The company is focusing on digital transformation, partnerships, and emerging insurance trends to strengthen its position as a key growth driver for the group, with Asia contributing 35% of MS&AD’s international adjusted profits in 2023.

Regional insurance growth drivers

MSIG Asia noted that the general insurance (GI) market across Asia Pacific (excluding China, Korea, and Taiwan, except for cyber insurance) is expected to expand significantly in the coming years.

Research from Accenture, Bain & Company, Gallagher Re, and other sources highlights several key trends shaping the market:

  • Digital insurance sales: By 2029, 80% of retail insurance purchases are expected to occur online. This segment is projected to grow to JPY 1,700 billion.
  • Healthcare insurance: Rising healthcare needs, driven by middle-class growth and greater awareness, are forecast to push this market to JPY 1,900 billion.
  • Cyber insurance: With increased digitization, demand for cyber risk coverage is expected to surge, reaching JPY 780 billion.
  • Travel insurance: Growth in middle-class travel activity is anticipated to drive this market to JPY 1,000 billion.
  • Electric vehicles (EVs): Expanding EV adoption and heightened environmental consciousness are expected to contribute to a JPY 300 billion market.

MSIG Asia’s 2029 ambition

MSIG Asia said it aims to achieve a compound annual growth rate (CAGR) of over 15% in profit after tax (PAT) by 2029. The company plans to achieve this by leveraging three key pillars: 

  • building the right team of specialists to drive growth in target areas
  • partnering with MGAs, digital platforms, and other stakeholders to improve market reach and efficiency
  • utilising data, advanced technology, and MSIG’s established brand to enhance product offerings and customer engagement

Areas of strategic focus 

Digital distribution

MSIG is increasing its investment in digital distribution channels by partnering with major consumer platforms across Asia. A new B2B2C platform, currently under development, will employ open APIs to improve accessibility and streamline the insurance purchasing process for customers.

Cyber insurance

The insurer has expanded its cyber insurance portfolio across the Asia-Pacific region, capitalising on a growing demand for protection against cyber risks.

In collaboration with global partners such as Coalition and telecommunications firms, MSIG aims to offer enhanced underwriting services and risk management tools.

Healthcare insurance

Through its recent investment in Serenity, an MGA specialising in healthcare insurance, MSIG is set to expand its healthcare offerings. Serenity is expected to commence operations in early 2025, providing data-driven mid-market health solutions tailored for brokers and corporate clients.

In a move to improve the sustainability of its healthcare portfolio, MSIG Singapore recently announced the appointment of Inova Care as its new health claims management provider, effective Jan. 15. The partnership comes in response to rising medical costs driven by an aging population and increasing utilisation of healthcare services.

Travel insurance

MSIG is forging new partnerships with fintech companies, airlines, and online travel agents to expand its travel insurance offerings.

The company’s stronghold in markets like Thailand, where it holds approximately 20% of the travel insurance market, is expected to serve as a model for regional growth.

Renewable energy and electric vehicles

In the renewable energy space, MSIG is working with MGAs like RiskPoint to develop underwriting solutions tailored to the sector.

The company is also advancing its electric vehicle insurance offerings by creating cross-regional frameworks for policies, claims handling, and reinsurance agreements.

Mergers and acquisitions (M&A)

MSIG has established a dedicated M&A team to pursue opportunities for transformative deals or bolt-on acquisitions that align with its strategic goals.

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