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The top 20 public insurance companies in Asia-Pacific (APAC) sustained their momentum in 2022, benefiting from the increased insurance awareness following the COVID-19 pandemic and an economic rebound in most markets. As a result, their average premium earned* grew by 8.2% while experiencing a marginal 0.7% uptick in total revenue, reveals GlobalData, a leading data and analytics company.
Murthy Grandhi, Company Profiles Analyst at GlobalData, comments: “In 2022, roadblocks for insurers came in the form of IFRS 9 implementation and risk-based capital regulations, the translation of ESG/net-zero factors into investment approaches, and the establishment of viable hedging strategies in the face of elevated expenses and restricted access to hedging instruments. But they sailed through commendably.”
Of the top 20, 15 insurers reported year-on-year (YOY) growth in premium earned in 2022, with the notable performers being Dai-ichi Life, T&D Holdings, and Hanwha Life Insurance.
Dai-ichi Life
A 17.6% growth in premium earnings for Dai-ichi Life can be attributed to the rise in policy reserve reversals resulting from reinsurance transactions aimed at reducing market risks.
T&D Holdings
Increased income from insurance premiums from Taiyo Life, Daido Life, and T&D Financial Life by 7.6%, 0.3%, and 94.7%, respectively, coupled with positive investment income drove T&D Holdings’ revenue by 11.5%.
Hanwha Life Insurance
Revenue of Hanwha Life Insurance increased by 21.4% due to a 26.3% growth in premium income, driven by an increase in general protection premiums and a favorable investment yield.
Biggest losers
Japan Post Insurance and AIA Group saw slight drop in earned premiums, experiencing declines of 1.6% and 1.5% respectively, leading to an overall reduction in revenue.
Japan Post Insurance’s decrease in both insurance premiums and investment income contributed to a 3.9% decline in revenue.
AIA Group’s total weighted premium income also declined by 1.9%, mainly due to a 5.9% decrease in premiums from the Thailand market.
Grandhi concludes: “Post-COVID-19, customers seek enhanced healthcare coverage and expect more from insurers in the APAC region. In response, insurers are shifting focus to protection-oriented offerings, investing in healthcare, clinics, hospitals, and third-party administrators. Building comprehensive healthcare ecosystems and partnerships is crucial for future success.
“Concurrently, insurers are focusing on digital transformation, allocating resources to enhance digital capabilities in distribution channels and streamline backend operations through automation. This strategic shift addresses customers’ rising expectations for faster and accessible services, akin to digitally advanced services in other sectors.
“Nonetheless, addressing the effects of the current interest rate environment on capital markets is crucial. After a prolonged period of low rates, insurers now face potential impacts of rate hikes and macroeconomic uncertainties. These considerations affect product design and capital allocation. The first half of 2022 saw unexpected challenges, with negative returns in equity and fixed income markets, and significant currency depreciation against the US Dollar. Despite these issues, the Asia-Pacific insurance market remains attractive globally.”
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