Asia, already a significant market for the life insurance market, has good potential for further growth, said Minister Ong Ye Kung, Board Member of Monetary Authority of Singapore.
Minister Ong said this in his opening address at Manulife Tower’s official opening ceremony where he listed the three key fundamentals driving the good potential for further growth in Asia’s life insurance market.
1. Growing Asia
The number of middle class households in ASEAN is projected to double from 2010, to reach 120 million by 2025.
There is a new mass affluent generation, comprising young and savvy customers. This presents exciting new opportunities for the life insurance industry, requiring new products and services including financial and estate planning, wealth accumulation and protection, asset management and inheritance planning.
2. Silver Asia
As life expectancy increases, the region’s population is on the whole ageing. By 2050, more than a quarter of people in the region are expected to be above 60 years of age.
In addition, there is a widening gap in health protection, which stands at USD 1.8 trillion today, In Singapore, there remains a protection gap for critical illnesses and more can be done to educate consumers to insure themselves adequately.
3. Digital Asia
Asia possesses the right conditions for rapid digital transformation. That has contributed to the vibrancy of the FinTech sector.
MAS began its FinTech journey in 2015, and today, Singapore has established itself as a leading FinTech hub, with a thriving and supportive ecosystem.
One of the key factors driving FinTech in Singapore is the opportunity for start-ups and established players to collaborate.
In this regard, Insurance-InsurTech collaborations have taken off in Singapore, and MAS will continue to encourage and foster such partnerships. Today, Singapore has the highest concentration of over ten corporate insurance labs and over 40 InsurTech start-ups.
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