China is expected to lead in terms of written premiums at 36%.
According to GlobalData, the Asia Pacific (APAC) property and casualty insurance industry is expected to grow from approximately $93.1 billion in 2023 to $152.2 billion in 2028, at a compound annual growth rate (CAGR) of 10.8%.
The APAC non-life insurance market is expected to outperform the global average growth rate, with a CAGR of 8.1% from 2024 to 2028.
The market in the region is concentrated in China, Japan and Australia, which are expected to together account for 75.2% of the region’s written premiums by 2024.
China is expected to be at the top with 36%, followed by Japan with 23.5% and Australia with 15.7%.
GlobalData insurance analyst Aarti Sharma points out that disciplined underwriting practices and rising premiums for fire and residential multi-risk property insurance will drive 8.3% growth in the APAC property insurance market in 2024. .
“Favorable regulatory changes and adoption of advanced technologies such as artificial intelligence (AI) and machine learning (ML) in risk assessment and streamlining the claims process will further fuel the industry’s growth,” Sharma said. Ta.
Natural disasters continue to impact markets. In Australia, the April 2024 storms in New South Wales and Queensland resulted in 19,938 insurance claims and economic losses of $182.4 million. Meanwhile, the February 2024 storm in Victoria resulted in more than 27,000 claims and total losses of $139.8 million.
In Japan, in response to worsening losses from natural disasters, the Non-Life Insurance Rating Corporation decided to raise fire insurance premium rates by 5.5% in 2018 and to 13% in 2023.
The increased demand for fire and home multi-risk insurance policies is driven by increased awareness of the economic risks posed by natural disasters.
However, rising reinsurance costs and low loss ratios are likely to cause insurers to limit coverage in high-risk areas.
“Data analysis using AI helps insurance companies generate sales leads. Virtual assistants and chatbots guide customers through the buying process and engage with customers by providing information about policies and claim status. dialogue and lead to increased efficiency,” said Sharma.
Insurers are using AI for data-driven risk assessment and customer engagement, improving efficiency in policy sales and claims processing. Meanwhile, regulatory changes such as China’s push for green insurance and Australia’s provision of additional funding for disaster preparedness are also shaping the market.
“Rising premiums in multi-risk fire and housing due to increased reinsurance costs and exposure to nut cat events will support non-life insurance growth in APAC over the next five years.” There is a need to adapt to changing dynamics and focus on portfolio adjustments that limit high severity loss exposures while maintaining profitability,” Sharma added.
