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 between 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 has released comprehensive new research analyzing the current and future state of the retirement income market in the Asia-Pacific region. The report is based on a survey of over 100 insurance companies and financial institutions across eight countries. The results, along with case studies and in-depth analysis, provide insight into the economic and regulatory factors most affecting Asian retirement income markets, including consumer demand, product development, and opportunities for growth in the industry.
“Across Asia-Pacific, there is the potential for private market providers to complement and fill gaps that exist from government-sponsored retirement systems and employer-sponsored pension arrangements,” said Richard Holloway, managing director for Milliman’s South East Asia and India life consulting practice. “With this report we’re able to gain valuable insight into opportunities that may exist, on a country-by-country basis, and offer perspectives on ways to capitalize.”
“Technology advancements have now made it possible for financial institutions to provide consumers with tailored investment strategies and product solutions to achieve their goals in retirement. The development of robo-advice has begun to gain traction in the superannuation industry in Australia, and we expect the same to occur in Asia in the near future,” said Milliman Australia practice leader Wade Matterson.
Key findings from the report include:
• The vast majority of respondents feel their national retirement systems’ provisions are inadequate—even those traditionally considered to have more advanced systems such as Singapore and Australia.
• Regarding the most important features in a retirement income product, respondents feel consumers would value some type of guarantee, either income or capital protection, with simplicity being a consistent third across most countries.
• When it comes to financial advice, over 60% of participants felt financial advice was needed but 63% cited cost as the primary impediment for consumers.
Interested parties may obtain a copy of the Milliman study here.
According to the Indonesia Life Insurance Association, the Indonesian life insurance industry experienced a year-on-year increase of 9.2% in total gross income over the first quarter of 2016. Total invested assets grew by 4.7% with a general growth across almost all asset classes except for a decline of 5.7% in equity investment. Total claims paid by the industry dropped by 4.8% compared with the first quarter of 2015. There were no new life insurance licenses in the four-month period ending 31 August 2016. Milliman’s Richard Holloway, Halim Gunawan, and Iwan Juwono offer more perspective in the latest Indonesia Life Insurance Newsletter.
According to the 2015 market statistics released by the Indonesia Life Insurance Association, the life insurance market in Indonesia experienced a modest growth in weighted new business premium of 4% in 2015 after a decline of 3% in 2014. Over the five-year period from 2011 to 2015, the industry experienced a compounded growth of weighted new business premium of 7.2%. In terms of market share, Prudential Life Assurance remains the leading player with a market share of 21% of weighted new business premium in 2015. Distribution of life insurance in 2015 continued to be dominated by the agency channel and bancassurance. Milliman’s Halim Gunawan, Iwan Juwono, and Richard Holloway offer more perspective in the latest Indonesia Life Insurance Newsletter.
The latest issue of Milliman’s Indonesia Life Insurance Newsletter highlights developments in the country’s life insurance industry from September 1 through December 31, 2015. To download a copy of the newsletter, click here.
Milliman has announced that it will open an office in Kuala Lumpur on March 1, 2016. The Kuala Lumpur office will offer employee benefits, life, nonlife, and health insurance consulting services. Milliman has two other offices in South East Asia—in Jakarta and in Singapore—and now 12 in total in the Asia-Pacific region.
Steve White, Milliman chief executive officer (CEO) and president, says, “The opening of the Kuala Lumpur office continues Milliman’s expansion into South East Asia. Our newest location enhances our ability to deliver Milliman’s unique expertise in insurance and employee benefits to the Malaysian market.”
Richard Holloway, Milliman managing director, South East Asia & India, Life Insurance, says, “Our third office in South East Asia will complement our other locations in the region. With the opening of the Kuala Lumpur office, we are better positioned to serve both our multinational clients and our local Malaysian clients, working for both life insurance and family Takaful companies.”
Pang Chye, who leads Milliman’s Health and Nonlife Insurance consulting practices in Greater China and South East Asia, said, “We see a lot of development and plans to liberalise the market in Malaysia, such as the impending motor rate detariffication, and the vibrant dialogue between health insurers and healthcare providers. We continue to help our clients in Malaysia adapt global best practices to the Malaysian environment and are reinforcing our commitment by adding Kuala Lumpur to our network of offices across Asia.”
Danny Quant, Head of Employee Benefits, Asia and Middle East, added, “There’s growing need for employee benefit consulting in Malaysia. We are thrilled that Milliman now has a Kuala Lumpur office from which we can answer that need.”