‘Asia to become top market in 2017’

SWISS RE believes the combination of a growing middle-income sector in Asia, especially in emerging markets, the low insurance penetration, and China’s “One Belt, One Road” policy will make Asia become the biggest insurance market in the new year.

Speaking on the business outlook for Asean countries in 2017 at the “Thailand Insurance Symposium” held recently, Clarence Wong, chief economist for Asia at Swiss Reinsurance Company, said he believed that premium income would surpass those in North America and the European Union. Ten years ago, premium income in Asia was half that of North America, he said, adding that the growing income in Asia over the past few years had attracted insurance firms to broaden their presence in this region, said a report in The Nation.

The insurance industry in Asia is in its third phase of development, in economic growth, income growth, solvency reform and personal lines, he said. Premium income from life and health insurance in the region is on an upward trend due to demographic changes and need for healthcare.

He said technology would have an impact on the whole of society and thus shift risk pools and create new opportunities. Wong raised the example of Uber, which is becoming the world’s largest transportation company even though it owns no vehicles and Airbnb the largest accommodation provider that owns no real estate.

Suthiphon Thaveechaiyagarn, secretary-general of the Office of the Insurance Commission, said purchases of insurance online would increase in 2017 by 30-40 percent year on year.