An incisive look at the war for market share in the Asian life insurance market
Although the life insurance industry in Asia has emerged from the financial crisis stronger than ever, it has not escaped unchanged. As the general focus of insurance companies across the continent moves towards profitability beyond growth, tightening regulatory measures, shifts in consumer preferences, and risk tolerance, battle lines have been drawn between local incumbents, attackers, and foreign players. Life Insurance in Asia: Winning in the Next Decade, Second Edition looks at the ways in which small local agencies and multinational companies alike are seizing control of as much of the market as they can by aggressively recruiting new agents, leveraging new channels, and selling new products to cash in on the explosive Asian markets.
Thoroughly revised and updated, this new edition offers a comprehensive introduction to the booming Asian life insurance markets and outlines exactly what it takes to capture the opportunities that are emerging. Drawing on the research and experience of the McKinsey Asia financial services team, it includes everything you need to know about the battle for the life insurance market in Asia.
Looks at how China and India are becoming increasingly important players on the international life insurance scene
Goes behind the scenes of the Asian life insurance industry and the contentious battle for market share
Outlines the steps to successfully entering, and prospering, in the Asian market
The life insurance industry in Asia is changing like never before. What the future holds, no one knows, but with Life Insurance in Asia in hand, you'll have a clear idea of the factions in play and the rules of the game.
DR. STEPHAN BINDER is a director in McKinsey & Company's Shanghai office and leader of the Insurance Practice in the Asia-Pacific region. He has been with McKinsey since 1995 and is an advisor to many of the region's leading insurance companies and banks, with a long track record of successfully working with leading local companies and multinationals in Asia, Europe, and North America. Stephan has been published widely and is a prominent speaker at conferences on financial services topics. A German national, he holds a PhD from the University of M??nster and a master of business administration and economics from the Witten/Herdecke University. JOSEPH LUC NGAI is the managing partner of McKinsey & Company's Hong Kong office, and leads McKinsey's life insurance practice in Asia. He has advised several leading domestic and multi- national insurers and banks in Asia, counseling many of them through multi-year transformation journeys. He is a sought-after speaker on financial topics, and has appeared frequently at industry conferences as well as in the media. A Hong Kong native, he holds an AB from Harvard University, a JD from Harvard Law School, and an MBA from Harvard Business School.
Acknowledgments ix Introduction xi What Is New in This Second Edition? xii CHAPTER 1 Emerging Themes in Asia 1 A New Paradigm 3 Asia as the Emerging Powerhouse in Insurance 4 A Heated Battle between Multinationals and Locals 11 The Changing Face of Distribution 22 Driving Innovation in Insurance 35 Changing Product Mix to New Needs of Asian Consumers 40 Conclusion 54 CHAPTER 2 China: Yes, Size Does Matter 57 A Winding Road to the Top 59 Rise of the Chinese Giants 62 Foreign Multinationals in China: Scaling the Great Wall 66 Key Challenges to Overcome in China 71 The Future: Growth in Uncertainty 84 CHAPTER 3 India: Dance of the Elephant 87 Dawn of a New Era 89 Changing Landscape of the Life Insurance Market 93 Path to Sustainable Growth in the New Normal 96 The Future: India Life Insurance 2.0 105 CHAPTER 4 Japan: A Giant Awakening? 107 Continued Stagnation in the Overall Market 110 Shifting Competitive Landscape 112 Emerging Opportunities in Certain Product Submarkets 121 Increasing Scope for Innovative Sales Models 129 The Future 133 CHAPTER 5 South Korea and Taiwan: An Increasingly Localized Game 135 Highly Mature Markets 138 Mismatched Book of Assets and Liabilities 139 Entrenched Position of Leading Domestic Players 140 Foreign Players Fighting to Gain Share from Local Incumbents 141 South Korea: Solid and Resilient 143 Taiwan: Darkness before Dawn? 152 CHAPTER 6 Hong Kong and Singapore: Refusing to Mature 165 Profitable and High-Growth Contributor 170 Small but Stable Market for Latecomers 171 Attractive Asian Base for Multinational Insurers 172 Hong Kong: The China Opportunity Offshore 173 Singapore: Structured and Profitable 185 CHAPTER 7 Southeast Asia: The Underappreciated Growth Engine 191 Increasing Competition between Foreign and Local Players 195 Tailored Products for Market Niches 199 Channel Upgrades to Reach More Customer Segments 200 The Future: Reaching Scale 203 Indonesia: The Next Growth Frontier 203 Vietnam: Little China? 207 Looking Forward: Major Challenges Ahead 210 CHAPTER 8 The Road Ahead: A New Paradigm for Life Insurance in Asia 213 Changing Context: A Much More Difficult and Nuanced World 213 Seven Priorities for Winners 213 Sustaining Growth in the Next Decade 222 Appendix 223 Reference Sources 223 Methodology 226 Notes 227 Index 231