Asia-Pacific Life And Annuity Insurance Market Size

Asia-Pacific Life And Annuity Insurance Market Analysis

The Asia-Pacific Life And Annuity Insurance Market size in terms of gross written premiums value is expected to grow from USD 1.22 trillion in 2024 to USD 1.42 trillion by 2029, at a CAGR of 3.89% during the forecast period (2024-2029).

Economic growth in Asia-Pacific economies is expected to be growing further in the forecast period. Also, the aging population is expected to support the growing demand for long-term investment, health, and retirement coverage. For life insurance, asset risk rises due to increasing allocations to higher-yielding non-traditional assets and widening currency mismatches. In regulation, tightening capital and asset liability management requirements could strengthen the industry's capacity to absorb sudden changes. The cost of claims continued to increase across all risk products as claims as a proportion of premiums increased by 4.3%. This trend was likely due to a wide range of factors for group lump sum insurance, including the impact of the decrease in premium volumes due to PMIF and PYSP without a corresponding change in operating expenses.

There was a negative impact of the pandemic on the Asia-Pacific Life and Annuity Insurance industry. While the social and medical consequences of the pandemic have been significant, the shock to the economy and markets is having a significant impact on life insurance and annuity companies. Interest rates and equity markets have declined, credit spreads have widened, and implied volatilities have increased. Each of these movements affected fixed income and equity investments, as well as the life and annuity products insurers sell, creating balance sheet and earnings volatility. Post-pandemic, the market experienced significant growth year-on-year. Digitalization, new mergers, and acquisitions, which happened post-pandemic, are propelling the market.