The region's life insurance sector will be growing at a CAGR of +4.9% during 2019-2023. Despite disruptions due to the COVID-19 pandemic, some countries are now experiencing a gradual recovery following the lifting of isolation restrictions.
A positive economic activity as of the 3rd quarter of 2020 in Singapore has helped revive demand for life insurance products. Likewise, total premiums on long-term valid policies in Hong Kong have increased by 5.1% year-on-year during the first three quarters of 2020. The Malaysian Life Insurance Association has expanded additional relief measures such as pecuniary and lump sum death benefits for policyholders diagnosed with COVID-19. This, combined with pandemic awareness, is expected to raise the demand for life insurance policies.
Major insurers are also cooperating with insurtech startups and other insurance companies to remain competitive and improve customer service. For example, Manulife-Sinochem Life introduced a biological age model (BAM) + life insurance. The company collaborated with insurance company SCOR Global Life and ReMark to add a BAM algorithm that helps insurers in continuous risk assessment, thereby contributing to better underwriting and competitive pricing.
The life insurance market will continue to grow with increased technology adoption and increased demand. Low insurance penetration in emerging markets will drive demand for protection insurance, while aging demographics in mature markets will create demand for post-retirement insurance products.
Photos are from open sources.