ASIA'S INSURANCE MARKET SET FOR STEADY GROWTH THIS YEAR

SINGAPORE, March 18 (Bernama) -- The South Asia and East Asia insurance markets are expected to continue to grow steadily in 2011 and easily outpace the rest of the world’s regions.
But insurers must choose their opportunities carefully and move quickly to take advantage of this expansion, according to Ernst & Young’s Global Insurance Centre 2011 Far East Insurance Outlook.
"Insurers need to keep in mind that Asia-Pacific is a highly diverse market when it comes to the economic progress of various countries, as well as the factors that drive their insurance markets,” said Jeff Malatskey, Insurance Practice Leader, Ernst & Young, Asia in a statement.
He said while Asia-Pacific featured mature regions that are more saturated by insurance products, the developing and emerging markets offered tremendous growth potential.
However, this is only for insurers who are ready to commit financially over the long term, Malatskey said.
Ernst & Young identified three key issues that will influence insurers looking to share in this growth in 2011.
Firstly, they would have to adjust and expand distribution strategies amid shifting demographics and consumer buying patterns.
Secondly they would would have to develop strategies to shape and comply with the heightened pace of local and global regulatory and accounting developments and finally they would have to develop dependable capital sources required to support accelerating business growth.
It said insurers would also need to pay close attention to operational improvements, natural catastrophe cover and takaful opportunities this year.