Bangkok--Aug 24--Moody's Asia Pacific
Moody's Investors Service says - in a new major report - that insurance markets in Asia Pacific are generally characterized by high growth momentum and potential, though a wide disparity remains evident in penetration rates across the region.
Furthermore, given rising risk awareness and increasing wealth accumulation, Moody's believes that the region's insurance markets will continue their expansion, although the extent will vary on an individual basis.
"Much of the growth will also depend on the operating landscapes of
specific markets, which are in turn affected by economic developments, political factors, business infrastructure and regulatory environments," the report says.
"This new report provides an overview of the life and P&C markets in 14
economies in the Asia Pacific," says Wei Yen, Managing Director for Moody's Financial Institutions Group in the region.
"It is detailed, incisive, in-depth and broad in its analysis. Themes
examined include liberalization and deregulation, negative spread, the emergence of investment-linked products, the growth of bancassurance, as well as disclosure and transparency," Yen adds.
"Moreover, the geographic spread of the report is significant. We look at large well-established markets - such as Japan, Australia and Hong Kong -
but also those still in a developing stage, and where information is not always immediately available," he says.
"Given its completeness, the report is a strong testimony to the
abilities and resourcefulness of Moody's analytical team," Yen adds.
On the theme of liberalization and deregulation, the report says both
have picked up in the region, leading to intensifying competition and a gradual fall in the numbers of wholly state-owned insurers.
"We think that liberalization will generally have a positive impact on
Asia Pacific markets, due in part to the expected transfer of financial resources as well as technical know-how and skills from global foreign players," the report says.
The report further says that awareness of the importance of capital and
risk management among insurers will gradually increase with the introduction of risk-based capital regimes in certain markets.
"And with the relaxation of investment restrictions in several markets,
Moody's expects to see some changes in investment make-ups, but cautions that insurers must ensure proper management of their investments as well as appropriate asset and liability matching," the report says.
At the same time, Moody's believes that the negative spread burden is
gradually easing for various reasons, including the introduction of alternative products with lower investment risks, such as protection and investment-linked products, and new traditional policies with lower guaranteed rates.
Overall, the proportion of business with negative spread in Asia Pacific
is expected to continue declining over time, although the pace of declination differs from market to market.
NOTE TO JOURNALISTS ONLY
For a copy of this report, please contact New York Press Information +1-212-553-0376; Anna Passey in London +44-20-7772-5456; Louisa Pearce-Smith in Paris +33-1-5330-1073; Juan Pablo Soriano in Madrid +34-91-310-1454; Henry McNevin in Milan +39-02-58-215-580; Hector Lim in Sydney +612 9270 8102; Detlef Scholz in
Frankfurt +49-69-707-30-700; Adel Satel in Limassol +357-25-586-586; Tokyo Press Information +813-5408-4110; Hilary Parkes in Toronto +1-416-214-1635; Hong Kong Press Information +852-2916-1150; Luiz Tess in So Paulo +55-11-3443-7444; Benito Solis in Mexico City +5255-9171-1817; Jose Fenner in Buenos Aires +54 11-4816-2332 ext. 118, or Reynold Leegerstee in Johannesburg +27-11-217-5471. Or visit our
website at www.moodys.com
Hong Kong
Wei S. Yen
Managing Director
Financial Institutions Group
Moody's Asia Pacific Ltd.
Telephone: 852-2509-0200
Facsimile: 852-2509-0165 End.