Tag Archives: Alex Bryant

Mixed outlook for participating business across Asia

Milliman has released the findings of a study analysing and comparing participating (par) business across seven Asian insurance markets, notably Singapore, India, Malaysia, Hong Kong, China, Indonesia and Sri Lanka. The report collates in-depth information not otherwise available and provides insight from survey results about par business in Asia.

‘Par products have been a core insurance offering for many decades in many markets across Asia Pacific and in Singapore, Hong Kong and India they remain a cornerstone of the industry,’ said Richard Holloway, managing director for Milliman’s South East Asia and India life consulting practice. ‘However, increased regulatory scrutiny of par business in countries such as Malaysia and the onset of risk based capital solvency regimes in most markets may lead to a gradual decline in the popularity of such products. This report unlocks key considerations for companies offering par products across the region, highlighting differences in performance, investment approach, and governance of par across the seven markets.’

The ‘Milliman Participating Business in Asia’ report includes:

• A regional view of common themes and differences among the seven selected markets
• Detailed country commentary on par business performance, regulatory environments and key challenges
• Results of our survey providing qualitative insights into par business in these countries
• Analysis of the governance frameworks in place and roles of policyholder advocates

To download the report, click here.

Milliman releases analysis of participating business in Asia

Milliman today announced the release of a new research report, “Participating business in Asia: Where do we go from here?” The research highlights strong demand for participating business (par) in Asia, and the challenges it has faced from the recent low interest-rate environment.

“Par business represents a significant proportion of the new business being sold in Asian markets and has been gaining market share in recent years”, said Milliman Principal Richard Holloway. “Following the Global Financial Crisis, we have seen a general shift away from unit-linked products toward par products, perhaps because consumers have come to recognize the value of the underlying guarantees that par offers. With this latest research, we look more closely at the concept of unitized with-profits (UWP) as an alternative product offering for insurers in Asia to consider. UWP has yet to develop a foothold in Asia, but it may be a more appropriate platform for writing par policies in the future.”

The report offers an overview of par business in China, Hong Kong, India, and Singapore before introducing the concept of UWP, which became the main type of par business offered in the UK during the 1990s. It then explores how UWP could be applied in the specific example of the Singapore market, with comparisons to existing products.

To read the entire research report, click here.