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.
In the past, acquisitions in the European insurance market were conducted largely by European—and occasionally other western—insurers. There was little or no interest from Asian buyers, but this is changing. Asian investors are not afraid of spending their money on the right company. They have the capital western insurance companies need and are willing to invest in their future and deliver better returns than they might expect from domestic markets. This Milliman Impact article provides more perspective.
Many of the core ideas of Solvency II are drawn from the realms of finance and investing. These may or may not extend naturally to the domain of insurance risk. Tools are increasingly available that enhance our ability to develop forecasts and to critique these forecasts as part of the capital management, business planning, and decision-making process. There is an explosive growth in potential applications of data analytics, predictive algorithms, and behavioral modeling to challenges related to insurance risk. In this paper, Milliman’s Stephen Conwill describes several key areas that can serve as building blocks for a new analytical framework.
According to consumer data in Japan, it appears more adults are girded in diapers than babies. This statistic offers an analogy for the country’s aging population. Increased life expectancy is putting a financial strain on individuals. There is also evidence that increased longevity can have an economic effect on a country’s finances. In a recent Best’s Review (subscription required) article, Milliman consultant Stephen Conwill talks about the role the life insurance industry can perform to help governments cover the costs of those living longer.
Here is an excerpt:
Living longer has massive financial implications, both for individuals and governments…
Stephen Conwill, chief executive officer of Japan Milliman, said the insurance sector can pick up where governments leave off.
“Governments are usually successful when they provide something very simple, the basic needs, and then let the insurance sectors provide either more complex risks or fill in the gaps the government can’t adequately provide,” he said. “That’s certainly been the philosophy in Japan with respect to both health care and pensions. It’s worked very well to date, but the government plans are under extreme pressure for cost cutting, figuring out how to fund it going forward.
“So funding is really the issue and I think it’s really on the funding side that the insurance and private sector can hopefully get in and encourage people to do a little more for themselves, and can encourage companies to work together and provide solutions.”
Milliman consultants have experience working on many facets of mergers and acquisitions (M&A). This series of videos highlights Milliman’s global cross-disciplinary team of M&A experts.
In this video, Joy Schwartzman talks about Milliman’s international team of M&A consultants.
Milliman’s approach to M&A transactions includes understanding a client’s financial pressures and market needs. Jim Murphy discusses the approach in this video.
Evaluating a company’s enterprise risk management procedures during the overall M&A process is important. Steve Schreiber offers some perspective.
In this video, Stephen Conwill discusses how Milliman consultants simplify financial analyses and help Japanese businesses conduct cross-border M&A transactions.
With Solvency II pending, nonlife insurers in Europe may seek diversification between their lines of business. Tigran Kalberer explains in this video.
Sanket Kawatkar discusses how Milliman’s M&A consultants help valuate India’s life insurance companies by looking beyond technical assessments.
In this short film, Milliman principals and consultants Neil Cantle, Paola Luraschi, Stephen Conwill, Laurens Roodbol, and Joshua Corrigan discuss how Milliman’s breadth of expertise spread across the globe can guide organizations on their enterprise risk management (ERM) journey, from creating an enterprise risk management framework to implementing recommendations, organizing the compliance function, and creating reporting tools.
To learn more about Milliman’s ERM solutions, click here.