In the wake of the COVID-19 pandemic, the majority of the population realized the importance of insurance. Against this backdrop, the top 20 Asia-Pacific (APAC) public insurance companies reported an aggregate premium of $908.6 billion in 2021, reveals GlobalData, a leading data and analytics company.
Murthy Grandhi, Company Profiles Analyst at GlobalData, comments: “In 2021, the COVID-19 pandemic continued to put the global financial market and insurance industry under severe stress. Consequently, insurance companies changed their operation philosophy and adopted new technologies to reevaluate from product design to cost control. The APAC region also witnessed economic rebound with successful control of the COVID-19 infection rates and supportive monetary and fiscal policies.”
An analysis of GlobalData’s Company Profiles Database reveals that the top 20 APAC insurers reported a year-over-year (yoy) growth of around 5% in their top-line performance in 2021. Eight insurers reported more than 7% rise in premiums earned. In addition, the top 20 companies maintained financial robustness through flexible hedging of assets under management.
The most notable performers in the region were China-based insurers New China Life Insurance and China Taiping Insurance, which reported 15% yoy revenue growth.
New China Life Insurance outperformed the top players, with its revenue growth surpassing 15%, as the first-year premiums from long-term insurance business up by 5% and renewal premiums by 3.5% yoy. It also reported total investment yield of 5.9%.
China Taiping Insurance reported a 15% rise in revenue due to 13.6% and 24.3% growth in premiums written and net investment income, respectively, from life insurance business.
The remaining insurers reported moderate revenue growth with China Pacific Insurance, China Life Insurance reporting a yoy growth of 11%; and The People’s Insurance Company, PICC Property and Casualty, T&D Holdings, and Life Insurance Corporation of India reporting growth between 5-10%.
However, Japan Post Insurance underperformed with a 10.3% decline in revenue on the back of a 11.6% drop in annualized premiums from individual insurance and medical care insurance.
Grandhi concludes: “With home to one-third of the world’s population, some of world’s fastest growing economies and significant uninsured population, APAC region has the potential to become the world’s largest market for insurance. Insurers with presence in the region can capitalize on the positive outlook by adopting strategies such as new, impact-based insurance offerings, and introducing hybrid distribution channels.”