CEOs weigh challenges and opportunities across Asian insurance markets
By Reva Ganesan
(L-R) Messrs Mark Saunders, Fisher Zhang, Sang Lee, Patrick Graham and Amit Jhingran.
In an executive insights panel, CEOs from across Asia shared their views on the insurance industry, diving into current trends, pressing challenges and what’s top of mind for their strategies.
Topics ranged from low penetration and retirement readiness in emerging markets to regulatory shifts, digital innovation and healthcare insurance pressures in developed markets, offering insights into where the sector is headed and how leaders are preparing for growth and disruption.
China market
AIA Group regional chief executive Fisher Zhang said consumption and high-tech investment appear strong in the first half of the year, although the property market has slightly dragged performance.
“The life insurance industry, however, faces significant challenges, particularly in China. Interest rates have fallen over 100 basis points in the past year, lower than in other markets, raising investor concerns about potential situations like Japan. Additionally, the industry has seen high guaranteed returns in recent years, further straining the market,” Mr Zhang said.
Despite these difficulties, he remains optimistic about the future, noting that regulators are fully aware of the challenges and acting.
“I see a lot of potential in Hong Kong. China’s commercial insurance and pension sectors can be further developed through government tax incentives,” he said, adding that these steps point to “a healthier, more sustainable future.”
India market
SBI Life Insurance managing director and CEO Amit Jhingran highlighted the growth potential despite low penetration.
“Although it has moved from 2.1% to 2.8% in the last two decades, that leaves a huge opportunity,” Mr Jhingran said.
“Insurance density in India is almost one-fifth of the developed world, which is another huge opportunity. One of the youngest nations today at 28 years of age, with rising incomes and urbanisation, all these factors together create a huge insurance market,” he said.
He also noted the changing consumption patterns of younger earners.
“When the young people start earning, spending habits are also changing in India. A lot of aspirational buying is happening, and young people are creating liability for acquiring assets. When they create liability, obviously the need for insurance protection also goes up,” he said.
Hong Kong market
Manulife International CEO Patrick Graham acknowledged the immediate challenges but highlighted long-term potential.
Despite the short-term hurdles, he noted strong underlying trends in saying, “If you look at how the industry has fared over the last couple of years, from the reopening of borders in Greater China post-pandemic to today, the industry has been on an incredible run. It’s driven by megatrends like wealth creation in China, the emergence of the middle class, ageing populations and retirement needs. Hong Kong is incredibly well-positioned as China’s most international city, not just a local market but also a regional market.”
SEA – Thailand and Vietnam markets
Chubb Life president of Southeast Asia and New Zealand Sang Lee said, “Thailand is the biggest insurance market overall, collecting nearly $20bn in premiums per year, versus Vietnam, which is growing very fast but collects just about $6bn.”
Mr Lee highlighted rising medical costs as a challenge.
“Present medical inflation is crazy. You can measure it different ways – claims this year versus next year and we’re talking double-digit growth. Ultimately, customers are paying a lot out-of-pocket. In Vietnam, a lot of healthcare costs are out-of-pocket. Thailand is better, but depending on the service, it can still be substantial,” Mr Lee said.
On insurance coverage and product design, he added, “As countries develop, insurance should be complemented by government programmes. But often the benefits you can claim are very low compared to the premiums paid, so you must constantly upgrade products.”
He also discussed changing health risks and retirement readiness.
“Leading causes of death in Thailand are now mostly critical illnesses, starting with cancer. GDP per capita is low, but people are saving for THB 3 to 4m- about $150,000. Even in smaller markets, retirement readiness is a real concern. Regulation can help by attracting more people with incentives and tax breaks, like Thailand has done, promoting greater insurance uptake,” he added.
Mr Lee concluded by introducing healthcare insurance as a key focus, “Healthcare systems are under stress in every market. Health insurance is very challenging- some call it a failed business model. It’s difficult to create value, but it’s an area that requires urgent attention.”