In the past decade, insurance companies have experienced some dramatic shifts. Many of the trends that we have discussed in previous outlooks have changed the shape and direction of the industry. Issues include increasing customer sophistication, growing use of technology across all aspects of the insurance value chain, greater collaboration and alignment with insurance regulators, and significant innovation in the products being offered.
In 2014, insurers in the Asia-Pacific region will continue to face slower economic growth, a lingering low-interest-rate environment and regulation that is wider in scope and severity at the national and regional level. However, the liberalisation of trade barriers and the continuing increase in middle-class and high-net-worth consumers is highly favorable for the insurance industry.
As insurers in Asia-Pacific assess these challenges, they are responding with cost control and internal process improvements.
This whitepaper analyses the key factors shaping the Asia-Pacific insurance market in 2014 and insurers' ability to ensure success.