[“. . . doubts concerning the solvency of mutual life insurance funds are leading to ageneral feeling of insecurity about the future, encouraging cautious behavior and a fall inconsumption . . .”]. Swiss Re predicts nonetheless that demand for life insurance is likelyto remain strong throughout Asia, including by implication Japan, due to rising householdincome and greater risk awareness on the part of an aging population looking forinvestment linked and pension products.
Insurance in Asia - Expanding Horizons
, www.swissray.com (1/20/03).
B. China, Taiwan and Hong Kong -- Remarkable Growth.
During the 1990s when average annual premium growth for the world wasbetween 2 and 10%, premium revenue was growing at the rate of 18% in the regioncomprised of China, Hong Kong and Taiwan.
Hwang and Greenford,
An Examination of the Determinants of the Demand for Life Insurance in China, Hong Kongand Taiwan
(Abstract), www.aria.org (2002 Aria Annual Meeting). The China InsuranceRegulatory Commission estimates an annual growth rate for the Chinese insuranceindustry in general of approximately 12% during the period of 2001 through 2005.
Risks and Rewards in China’s Insurance Market,
ASIA TIMES Online(2/16/01), www.atimes.com/report/CB16Ai01.html. Swiss Re singles out China andIndia as exceptions to the trend of consolidation and streamlining to improve profitabilityin Asian markets as a result of the Asian financial crisis. “China and India, both of whichhave recently opened their insurance sectors to competition, will continue to attractglobal and regional insurance companies. Being home to one-third of the world’spopulation and among the fastest growing economies, both offer huge untappedpotential.”
Insurance in Asia --Expanding Horizons
India, China To See Fastest Growth in Life Insurance Biz in Asia: [Swiss Re]Study
, www.rediff.com/money/2001/sep/08 insur.htm.Christopher S. Armstrong, 2003. ©All rights reserved Page 3