80 per cent say that Indonesia, Vietnam and Malaysia have significant or very significant growth prospects in the insurance sector over the next two years, trailing only China and India. The common characteristics of these five countries are high population, a relatively immature market and high barriers to entry presented by the insurance regulatory regime and foreign investment (FI) restrictions.
61 per cent say that over-regulation is a problem in their jurisdiction. However 80 per cent think that a regime akin to Solvency II is desirable in Asia Pacific. The paradox between the perception that there is sufficient regulation and the view that a Solvency II type regime is necessary, is unresolved. Alignment of regulation within the Asia Pacific region would remove arbitrage between countries and facilitate growth because of the certainty that it would bring. Harmonisation with Western markets is, however, a long way off.
75 per cent think that regulatory compliance has been given greater prominence in respondents’ organisations’ operations in the region over the last 12 months.
51 per cent say expansion is the main strategic objective that will require more capital over the next two years and 33 per cent expect that regulation will trigger more capital.
47 per cent foresee an increase in claims activity over the next 12 months and 32 per cent expect a corresponding increase in claims disputes.
View full report Asia Pacific insurance survey 2011 (pdf 1.64 MB)