Page 17 - Insurance Times July 2022

Life insurance industry in drivers with double-digit growth in 2021 Mitra concludes: “The life insurance
and are expected to maintain a CAGR industry in the Asia-Pacific region is
Asia-Pacific records high-
above 7% over 2021-26. expected to maintain steady growth
est growth of 7% over last Japan, Taiwan, and South Korea are over the next five years, driven by its
underpenetrated emerging markets,
five years in 2021 among the most saturated life insur-
improvement in the standard of living,
ance markets. These markets are ex-
Asia-Pacific’s life insurance industry and increased insurance awareness.
pected to record a CAGR of 4.7%,
recorded 7% growth in 2021, the high- Furthermore, the industry will see
3.8%, and 3.1%, respectively, over
est since 2016, due to increased insur-
major insurtech developments to ad-
2021-26.
ance awareness as macroeconomic
dress demographic challenges and pro-
imbalances highlighted the importance Personalization, mental health, well-
vide personalized insurance.”
of financial security in the wake of being, and environmental, social, and
COVID-19 pandemic, says GlobalData, governance (ESG) were some of the
UK motor insurance indus-
a leading data and analytics company. key trends witnessed in the APAC life
insurance industry. Examples of per- try to cross GBP20 billion
As per GlobalData, the life insurance
sonalization include the AIA Connect
industry written premiums in the Asia- by 2026
Pacific region are expected to grow at app by AIA Hong Kong, which guides
The UK motor insurance industry is
customers in recognizing the protec-
a compound annual growth rate projected to grow at a compound an-
tion gap with their existing life policies
(CAGR) of 6.5% over 2021–2026 from nual growth rate (CAGR) of 2.3% from
$1.30 trillion in 2021 to $1.77 trillion through cloud computing and AI.
GBP18.4 billion ($25.5 billion) in 2021
in 2026. With an increase in cases, mental to GBP20.6 billion ($31.3 billion) in
Deblina Mitra, Senior Insurance Ana- health’s inclusion in life insurance was 2026, in terms of direct written premi-
lyst at GlobalData, comments: “De- a notable development in the last ums (DWP), according to GlobalData,
spite the economic challenges in 2020, couple of years. For example, Austra- a leading data and analytics company.
the life insurance industry bounced lia-based TAL partnered with virtual
GlobalData’s latest report, ‘United
back as the COVID-19 pandemic high- healthcare provider Teladoc Health to
Kingdom (UK) General Insurance Mar-
lighted the importance of life insurance provide a tailored treatment plan.
ket, Key Trends and Opportunities to
for financial security. The industry’s
Regional insurers including Nippon Life 2025’, reveals that the UK motor insur-
growth doubled in 2021 aided by the
and Dai-ichi Life in Japan, Shinhan Life ance industry will witness growth of
economic recovery.”
in South Korea, and Axa and Manulife 1.5% in 2022 and 6.7% in 2023 in terms
China, Japan, Taiwan, South Korea, and in Hong Kong increased their ESG com- of DWP due to the increasing cost of
India were the top five regional mar- pliant investments as part of sustain- comprehensive motor insurance plans
kets, accounting for 85% of the region’s able practices. These trends are ex- on the back of rising inflation, easing
consolidated written premiums in 2021. pected to gain strong traction over the of COVID-19 restrictions and an in-
China and India were the major growth next five years. crease in vehicles sales.
The Insurance Times, July 2022 17