Regulatory, economic uncertainties cloud regional insurance outlook

KUALA LUMPUR: While the insurance industry fundamentals appear sound, regulatory and economic uncertainties as well as country-specific issues are clouding the Asia-Pacific outlook and creating some challenges, says the EY Insurance Outlook 2020 report.

According to the report, insurers should take advantage of a relatively young and growing middle class by embracing new technologies.

“This, in turn, will reduce their cost base and modernise distribution by strengthening direct-to-consumer propositions and leveraging regulatory change to streamline operations,” EY said in a statement today.

EY Asia-Pacific insurance leader Grant Peters described the Asia-Pacific region is a major contributor to future growth of the insurance industry.

“The region is still riding a strong growth spurt, driven by China, but also buoyed by positive performance in South Korea.

“However, mature markets present challenges with an ageing population and shifting consumer expectations.

“No other market is as diverse in terms of opportunity and maturity – which poses an exciting challenge for insurers in this region,” he said.

The EY Insurance Outlook 2020 report is based on collective sector workshops with insurance leadership across the globe (Americas, Asia-Pacific and Europe) and a formal survey of EY insurance professionals and external analysts.

The report reveals what life and non-life global insurers plan to prioritise in the year ahead to remain competitive in this new paradigm.

EY is a global leader in assurance, tax, transaction and advisory services. – Jan 21, 2020 Bernama

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