Insurances

The Insurances market in Eastern Asia is projected to reach a market size (gross written premium) of US$1.52tn in 2024.
In this market segment, Life insurances dominate with a projected market volume of US$836.70bn in 2024.
The average spending per capita in the Insurances market is estimated to be US$927.20 in 2024.
When compared globally, it is evident that the United States has the highest nominal value, with a projected market size of US$3.8tn in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 0.69%, resulting in a market volume of US$1.57tn by 2029.
In global comparison, the United States is expected to generate the highest gross written premium in 2024, with a projected market size of US$3.8tn.
In Eastern Asia, the insurance market in Japan is characterized by a strong emphasis on life insurance and a high level of customer trust in insurers.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Insurances market in Eastern Asia is experiencing significant growth and development, driven by various factors shaping the industry in the region.

Customer preferences: Customers in Eastern Asia are increasingly seeking insurance products that provide comprehensive coverage for a wide range of risks, including health, property, and life insurance. There is a growing demand for personalized insurance solutions that cater to individual needs and preferences. Additionally, customers are placing greater importance on digital channels for purchasing insurance policies and managing their claims efficiently.

Trends in the market: In Japan, there is a noticeable trend towards the adoption of technology in the insurance sector, with a focus on leveraging data analytics and artificial intelligence to enhance underwriting processes and customer experiences. South Korea is witnessing a rise in the popularity of variable insurance products, offering both protection and investment opportunities to policyholders. In China, the insurance market is being shaped by the increasing penetration of online insurance platforms and the growing popularity of health and critical illness coverage.

Local special circumstances: Eastern Asia is home to diverse regulatory environments that impact the insurance market in each country. For instance, in Taiwan, regulatory changes have led to an increase in market competition and product innovation. In Hong Kong, the insurance industry is influenced by its status as an international financial hub, attracting global insurers to establish a presence in the market. In South Korea, government initiatives to promote insurance awareness and financial literacy among the population are driving market growth.

Underlying macroeconomic factors: The economic growth and rising disposable incomes in Eastern Asia are contributing to the expansion of the insurance market, as individuals and businesses seek to protect their assets and mitigate risks. Moreover, demographic shifts, such as aging populations and changing family structures, are creating new opportunities for insurers to develop products that cater to the evolving needs of customers. The increasing focus on sustainable and socially responsible practices is also influencing the insurance market in Eastern Asia, with a growing emphasis on products that address environmental and social challenges.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.