Bangkok--18 Sep--Moody's Moody's Investors Service says that Asia Pacific's booming economy has increased life and non-life insurance penetration in both the region's mature and emerging markets, presenting the industry with huge growth potential, but the situation is not without its risks. "In addition, insurance companies will need to invest more to educate consumers on the necessity of their products as well as to train the required workforces; all of which represent significant challenges," says Wing Chew, a Moody's VP/Senior Analyst. Chew's made his remarks on the release of a Moody's report -- which he authored -- on the outlook for the life and non-life insurance sectors in Asia Pacific. "The report examines separately a total of 14 jurisdictions and, in each case, covers a wide variety of themes, including product development, distribution, risk and regulatory developments," says Chew. "In view of the strength of the economies in Asia Pacific, despite the sub-prime crisis, we believe the outlook for the insurance industry is robust, although efforts by central banks to combat inflation could curtail demand for products in the short term and so delay planned investments and the achievement of profitability among some companies,"says Chew. "But, as indicated, there are many encouraging trends evident in the region, such as the introduction or trialing of risk-based capital approaches on capital adequacy, and an increase in the ability of insurers to raise capital and so improve their financial flexibility," says Chew. On the whole, regulatory and governance environments have -- according to the Moody's report -- undergone strong enhancements, and insurance companies need to provide adequate disclosures of their financial condition and products to potential and existing customers. In the realm of distribution, insurers are more innovative, looking at other channels to increase efficiency and bancassurance has become a very important platform, says the report. At the same time, even though they have avoided direct exposures to sub-prime lending products, some insurers have significant exposures to equities, making them extremely vulnerable to the volatility of the financial markets.Moreover, while the larger insurers with established franchises are able to raise additional capital for higher capital adequacy requirements, the thinly capitalized firms will have great difficulty in getting funding from the capital market in the current environment. Specifically, for the life sector, there is tremendous potential for further growth for financial planning products, the report says. However, sales of these financial and risk products require an appropriately skilled work force which is -- as mentioned - in short supply. The challenge for the life insurers is to attract, develop and retain an adequate talent pool.Meanwhile, the general or non-life sector is still very much driven by traditional products like compulsory insurance for motor and liability lines. However, with the increase in the frequency of catastrophic events -- such as tsunamis and earthquakes and the significant consequential losses -- there is a renewed appreciation of the value of insurance in rebuilding lives and communities. The report covers Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. It can be accessed at www.moodys.com NOTE TO JOURNALISTS ONLY: For more information please contact New York Press Information +1-212-553-0376; EMEA Press Information in London +44-20-7772-5456; Juan Pablo Soriano in Madrid +34-91-310-1454; Alex Cataldo in Milan +39-02-914-81-100; Eric de Bodard in Paris +331-5330-1076; Detlef Scholz in Frankfurt +49-69-707-30-700; Mardig Haladjian in Limassol +357-25-586-586; Alex Sazhin in Moscow +7495-641-1881; Petr Vins in Prague +4202 2422 2929; Tokyo Press Information +813-5408-4110; Hilary Parkes in Toronto +1-416-214-1635; Hong Kong Press Information +852-2916-1150; Hector Lim in Sydney +612 9270 8102; Luiz Tess in S?o Paulo +5511-3043-7300; Alberto Jones Tamayo in Mexico City +5255-1253-5700; Daniel R?as in Buenos Aires +54 11-4816-2332 ext. 105; Craig Jamieson in Johannesburg +27-11-217-5470; Jehad el-Nakla in Dubai +971 4 401 9536; or visit our web site at www.moodys.com Sydney Wing Chew Vice President - Senior Analyst Financial Institutions Group Moody's Investors Service Pty Ltd JOURNALISTS: (612) 9270-8102 SUBSCRIBERS: (612) 9270-8100 Hong Kong Daniel Wong Associate Analyst Financial Institutions Group Moody's Asia Pacific Ltd. JOURNALISTS: (852) 2916-1150 SUBSCRIBERS: (852) 3551-3077