Growing awareness regarding the importance of insurance, alongside renewed economic growth post-pandemic have helped towards the growth of Asia-Pacific (APAC) public insurance companies, with the top 20 APAC insurers reporting an aggregate premium of $908.6 billion in 2021, according to GlobalData.
Analysts at the data and analytics company revealed that the top 20 insurers in the region reported a year-over-year (yoy) growth of around 5% in their top-line performance in 2021.
Eight insurers reported more than 7% rise in premiums earned. Additionally, the top 20 companies maintained financial robustness through flexible hedging of assets under management.
Murthy Grandhi, Company Profiles Analyst at GlobalData, comments: “In 2021, the COVID-19 pandemic continued to put the global financial market and insurance industry under severe stress. Consequently, insurance companies changed their operation philosophy and adopted new technologies to reevaluate from product design to cost control.
“The APAC region also witnessed economic rebound with successful control of the COVID-19 infection rates and supportive monetary and fiscal policies.”
According to the report, China dominates the list with seven companies. New China Life Insurance outperformed the top players, with its revenue growth surpassing 15%, as the first-year premiums from long-term insurance business were up by 5% and renewal premiums by 3.5% yoy. It also reported a total investment yield of 5.9%.
China Taiping Insurance was also one of the most notable performers in the region, reporting
15% rise in revenue due to 13.6% and 24.3% growth in premiums written and net investment income, respectively, from life insurance business.
The remaining insurers reported moderate revenue growth with China Pacific Insurance, China Life Insurance reporting a yoy growth of 11%; and The People’s Insurance Company, PICC Property and Casualty, T&D Holdings, and Life Insurance Corporation of India reporting growth between 5-10%.
The only insurer to have a loss in revenue was Japan Post Insurance. It reported a 10.3% decline in revenue on the back of a 11.6% drop in annualised premiums from individual insurance and medical care insurance.
Grandhi added: “With home to one-third of the world’s population, some of the world’s fastest growing economies and significant uninsured population, APAC region has the potential to become the world’s largest market for insurance. Insurers with presence in the region can capitalise on the positive outlook by adopting strategies such as new, impact-based insurance offerings, and introducing hybrid distribution channels.”
