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S&P published a forecast for the Southeast Asian life insurance market

According to the S&P Global Ratings' report “Southeast Asia Insurance Sector Trends - Return to Fundamentals”, the demand in the region for insurers' savings and investment products is growing.
S&P published a forecast for the Southeast Asian life insurance market

High rates help increase investment returns and improve the risk-return ratio. However, changes in the monetary policies of major central banks lead to fluctuations in exchange rates and more costly hedging (especially for Japan and Taiwan). Meanwhile, the policy of the Central Bank of New Zealand reduces the profitability of savings products of insurers in this country.

Hong Kong

Premium growth will be moderate due to continued demand for savings policies from customers in mainland China. This will be facilitated by the difference in interest rates between Hong Kong and China.

Japan

Business profitability will be stable in fiscal 2024 (year ends March 2025). Interest margins will continue to expand, while the cost of hedging foreign currency investments will put pressure on earnings.

South Korea

Profitability will slightly improve in 2024, and high domestic interest rates will support investment returns and reduce the burden of creating reserves. Premium growth will remain low given high penetration levels. Life insurers will focus on selling term insurance policies rather than annuities.

Malaysia

Robust economic growth conditions in Malaysia and rising health and financial awareness should support premium growth in 2024.

New Zealand

Profitability will improve in 2024 thanks to continued increases in premium rates. Analysts predict an increase in visits to psychiatrists due to difficult conditions in the labor market.

Source: https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/87549/Type/eDaily/Asia-Pacific-Mixed-growth-trends-in-life-insurance-market-driven-by-shifting-market-dynamics

Photos are from open sources.

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