Asian News - Taiwan's ILP mart most attractive for foreign asset managers - Cerulli Associates
Source: Asia Insurance Review | Dec 2015
Taiwan is regarded as the market where asset managers expect the most opportunity to manage assets related to investment-linked products (ILPs) over the next one to three years, said a new report by Boston-headquartered Cerulli Associates, a research firm that specialises in global asset management and distribution analytics.
The report, entitled “Asian Insurance Industry 2015: Setting the Right Strategies in North and Southeast Asia”, notes that ILPs continue to have a strong place in the Taiwanese market, which has the highest insurance penetration rate in the world at 18.9%. The largest proportion of asset managers that Cerulli surveyed (36.8%) identified Taiwan as the most attractive market to manage ILP assets.
In the report, Cerulli assesses the life insurance markets of China, Taiwan, Hong Kong, Korea, Singapore, Thailand, and Indonesia.
Penchant for new and innovative funds
Taiwan is an alluring insurance market given the amount of assets the industry has amassed, and the level of wealth and savings as well as investment appetite of Taiwanese investors relative to other markets in the region.
While the ILP segment in Taiwan is highly competitive, making it unfriendly to new managers and boutique players, there is ample scope for asset gathering if managers can offer compelling investment strategies. “The retail market’s penchant for new and innovative funds, coupled with positive perceptions of the use of insurance products, helps ensure continued demand for ILPs,” said Ms Manuelita Contreras, a senior analyst with Cerulli.