Page 20 - Insurance Times February 2021

19. This, coupled with the pandemic- annual growth rate (CAGR) of 1.7% products. This is expected to partially
led awareness, is expected to increase during 2019-2023 against the 2.5% insulate the decline in other business
demand for life insurance policies. growth as per pre-COVID-19 lines. Changes in policies such as the
estimates, primarily due to the inclusion of hospitalization and death
Ms Mekala continues: “Technology
advancements is another area that has economic uncertainty following the benefits and teleconsultation costs for
policyholders impacted by COVID-19
pandemic.
gained more prominence. Due to the
social distancing norms and regulatory Sangharsan Biswas, Insurance Analyst are expected to further supplement
push, increasing number of insurers at GlobalData, comments: “According the sales of personal accident and
are shifting to digital platforms. In June to the Singapore’s Ministry of Trade health insurance.
2020, Manulife Hong Kong launched a and Industry, the economy is expected Mr Biswas concludes: “Despite
virtual face-to-face agency sales to contract by 6-6.5% in 2020. controlling the outbreak, the economic
platform for most of its insurance Consumer spending has declined by recovery in Singapore is expected to
product offerings.” 14% year-on-year during January to remain subdued. Re-imposition of
Large insurers are also collaborating August 2020, which will lead to a lockdown restrictions due to periodic
with startups and insurtech companies decline in premium for general resurgence of the virus could limit the
to remain competitive and enhance insurers.” growth potential of the general
insurance business in the near term.”
customer experience. For instance, The impact of the COVID-19 was most
Manulife-Sinochem Life introduced prominent in motor and property
biological age model (BAM)+ life insurance business lines, which Life insurance industry in
insurance. The company collaborated together accounted for 42.0% of Taiwan to reach TW$3.6
with insurtech firm SCOR Global Life general insurance premium in 2019.
and ReMark to add BAM algorithm, According to the Department of trillion in 2024
which helps insurers in continuous risk Statistics of Singapore, the wholesale The life insurance direct written
assessment thereby facilitating better car sales witnessed a 31.8% decline premium in Taiwan is projected to grow
underwriting and competitive pricing. year-on-year in the third quarter of from TW$3.0 trillion in 2019 to TW$3.6
Ms Mekala concludes: “Life insurance 2020. Sales of motor vehicles increased trillion in 2024, according to
market will continue to grow, driven by 7.5% in October 2020, reflecting an GlobalData, a leading data and
by greater deployment of technology improvement in consumer demand, analytics company.
and increase in demand. Low which is expected to support the GlobalData has revised Taiwan’s Life
insurance penetration in emerging growth in motor insurers premium in insurance forecast in the aftermath of
markets will drive demand for the short-term. COVID-19 outbreak. As per the latest
protection insurance while the aging A similar impact is visible in the data, Taiwan’s Life insurance business
demography in mature markets will property insurance business. According is forecasted to grow at a compound
create demand for post-retirement to the Ministry of Trade and Industry, annual growth rate (CAGR) of 3.6%
insurance products.” construction sector declined by 46.6% during 2019–2024 against the pre-
year-on-year in the third quarter of COVID estimates of 5.2%, due to the
Singapore’s general insur- 2020, due to the closure of business economic uncertainty triggered by the
ance market to contract in operations and weak investment pandemic.
environment. As of August 2020,
2020 due to COVID-19 reopening of construction activities by Shabbir Ansari, Insurance Analyst at
GlobalData, comments: “In Q3 2020,
Singapore’s general insurance market the government while upholding Taiwan’s economy grew by 3.3%,
contracted by 1.9% in 2020, compared health and safety standards by which is faster than the other emerging
to the 6.7% growth registered in 2019, introducing periodic testing is expected economies in the Asia-Pacific region
according to GlobalData, a leading to improve investor confidence and like India and China. In addition, by the
data and analytics company. support property demand. end of 2021, nearly one-fifth of the
GlobalData has revised Singapore’s Personal accident and health (PA&H) country’s population will be over 60
general insurance forecast in the insurance, which accounted for one- years of age. The early economic
aftermath of COVID-19 outbreak. As third of general insurance business in recovery clubbed with aging
per the latest data, Singapore’s 2019, is expected to witness an population is expected to support
general insurance business is increase in 2020 backed by rise in the life insurance industry in the
forecasted to grow at a compound awareness for health insurance country.”
The Insurance Times, February 2021