Like Car Insurance

Best Insurance Stock Today - asian insurance market forecast 2013 , Asian insurance industry forecast 2013 : For insurers operating in developing markets, growing wealth from the burgeoning middle class represents a major source of premium and profit potential, via the sale of wealth management and personal lines insurance. Insurers operating in more mature markets can grow by enhancing product and service offerings to meet the more complex financial planning needs of consumers.  Insurers pursuing these opportunities must also deliver an acceptable return on capital. Regulators in many markets are evaluating efforts in Europe and the US to strengthen insurer solvency, and taking steps in this direction  according to a new report from  Ernst & Young

Ernst & Young�s expectation is that the majority of the region will experience common regulatory approaches and language, but the rules will be appropriate to their own market�s situation. Beyond prudential regulation, regulators are focusing on improving consumer protection and increasing product transparency. As regulations develop, insurers need to adapt their products and business models accordingly.

 A familiar litany of economic issues will persist in 2013 as existed in 2012: struggles with keeping the eurozone whole, protests in the streets, volatile financial markets, high rates of unemployment, and low rates of growth in the developed world all combining to make the 2013 economy a difficult environment in which to generate profitable growth.

 In 2013, domestic and international insurers in Asia-Pacific will benefit from the region�s organic premium growth potential, brought about by high levels of conomic growth and rising insurance penetration rates. Our outlook last year indicated that growth-seeking insurers would look to Asia-Pacific, and this continues to be the case.

The region leads the world in expected GNP growth rates, despite a slowdown in overall global economic growth. Standouts include China, Hong Kong, India, ndonesia, Vietnam, Malaysia and Thailand. Each country has experienced rapid development of its financial markets and services sectors.

In the current economic environment, insurers will need to be more selective about which markets to enter or exit, addressing both geographies and product lines; which distribution models to utilize; and how best to manage costs while maintaining  productivity. Mergers, acquisitions and divestitures are increasingly on the agenda for local, regional and non-Asian insurers.

 Desirable targets include companies with access to strong bancassurance or other distribution channels, entities with an established presence in the market, companies with a complementary product set, and organizations that have already invested in new technologies to reach customers. An increase in transaction activity is expected, with non-insurers focused on distribution access. Insurers need to ensure their goals and strategies are aligned with the target acquisitions, and that they have invested in the operational support systems to make the ventures succeed.

The increasing emergence of health insurance and pensions across the region presents another growth opportunity. It is anticipated that many insurers will critically assess how to access the high potential represented by these markets in 2013, although implementation of these plans via transactions and/or distribution agreements may take longer to materialize.Download Full Ernst & Young Anaysis