Market Size of Asia-Pacific Life And Annuity Insurance Industry
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.22 Trillion |
| Market Size (2029) | USD 1.42 Trillion |
| CAGR (2024 - 2029) | 3.89 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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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.
Asia-Pacific Life And Annuity Insurance Industry Segmentation
Life Insurance seeks to provide an individual's family with a lump-sum fiscal payout when that individual dies; annuities act as safety nets by providing individuals with a lifetime of guaranteed income streams.
The Asia-Pacific life and annuity insurance market is segmented by insurance type, distribution channel, and by country. By insurance type, the market is segmented into annuity insurance and life insurance. By distribution channel, the market is segmented into direct, banks, agents, online, and other distribution channels. By geography, the market is further segmented into China, India, Singapore, and the Rest of Asia-Pacific.
The report offers market size and forecasts for the Asia-Pacific life and annuity insurance market in value (USD) for all the above segments.
| By Insurance Type | |
| Annuity Insurance | |
| Life Insurance |
| By Distribution Channel | |
| Direct | |
| Banks | |
| Agents | |
| Online | |
| Other Distribution Channels |
| By Geography | |
| China | |
| India | |
| Singapore | |
| Australia | |
| Rest Asia-Pacific |
Asia-Pacific Life And Annuity Insurance Market Size Summary
The Asia-Pacific life and annuity insurance market is poised for significant growth, driven by economic expansion and an aging population that fuels demand for long-term investment and retirement coverage. The market is characterized by a larger life insurance segment compared to annuities, with increasing awareness and technology adoption enhancing the accessibility of life insurance products. The region's favorable demographics and the rise of insurtech solutions, such as online platforms for purchasing insurance, have further bolstered market growth. Mainland China leads the market with a fragmented yet rapidly growing life insurance sector, followed by Japan, India, and Hong Kong. The market's competitive landscape is marked by both large and mid-sized companies innovating in customizable and performance-based insurance products.
Despite the pandemic's negative impact, which led to economic and market shocks affecting balance sheets and earnings, the market has rebounded with year-on-year growth. Digitalization, mergers, and acquisitions have been key drivers of this recovery. The market remains highly competitive, with major players like Nippon Life Insurance Company, Life Insurance Corporation of India, and China Life Insurance Company actively participating. Recent strategic partnerships, such as those between Fanhua Inc and Asia Insurance Co., Ltd, and Chubb Life Hong Kong and AEON credit service companies, highlight ongoing efforts to leverage cross-sector opportunities and enhance product distribution. These developments underscore the dynamic nature of the Asia-Pacific life and annuity insurance market, which continues to evolve in response to economic and technological changes.
Asia-Pacific Life And Annuity Insurance Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Government Initiative is Expected to Drive the Growth of the Market
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1.2.2 Increasing Awarness About Life and Annuity Insurane
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1.3 Market Restraints
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1.3.1 Strict Regulatory Landscape is Expected to Restrain the Growth of the Market
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1.3.2 High Cost of Life and Annuity Insurance Products
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1.4 Market Opportunities
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1.4.1 Technological Integration of Insurance Platform
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1.4.2 Customized Products According to Customers Need
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1.5 Industry Value Chain Analysis
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1.6 Industry Attractiveness - Porter's Five Forces Analysis
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1.6.1 Bargaining Power of Suppliers
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1.6.2 Bargaining Power of Buyers
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1.6.3 Threat of New Entrants
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1.6.4 Threat of Substitutes
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1.6.5 Intensity of Competitive Rivalry
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1.7 Insights on Technology Innovation in the Market.
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Insurance Type
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2.1.1 Annuity Insurance
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2.1.2 Life Insurance
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2.2 By Distribution Channel
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2.2.1 Direct
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2.2.2 Banks
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2.2.3 Agents
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2.2.4 Online
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2.2.5 Other Distribution Channels
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2.3 By Geography
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2.3.1 China
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2.3.2 India
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2.3.3 Singapore
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2.3.4 Australia
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2.3.5 Rest Asia-Pacific
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Asia-Pacific Life And Annuity Insurance Market Size FAQs
How big is the Asia-Pacific Life And Annuity Insurance Market?
The Asia-Pacific Life And Annuity Insurance Market size is expected to reach USD 1.22 trillion in 2024 and grow at a CAGR of 3.89% to reach USD 1.42 trillion by 2029.
What is the current Asia-Pacific Life And Annuity Insurance Market size?
In 2024, the Asia-Pacific Life And Annuity Insurance Market size is expected to reach USD 1.22 trillion.
