Kathmandu. The life insurance market in the Asia Pacific region is expected to grow steadily over the next 5 years.
According to a recent report by GlobalData, the total premiums in the Asia-Pacific region are expected to rise from an estimated $1.2 trillion in 2025 to $1.6 trillion by 2029. This is a Compound Annual Growth Rate of 7.3 percent. The sector is expected to account for 32.4 percent of the global life insurance total premiums in 2025.
According to GlobalData, this growth will be supported by China and India. It is the only developing market among the top 10 life insurance markets in the world.
China’s life insurance premiums are expected to grow by an average of 9.3 percent from $501.9 billion to $717 billion in 2025-29. “China’s growth will be influenced by improved distributions, lower interest rates, and developments in the pension market,” the report said. ’
The new rules, including a tiered agent system that will be implemented in 2026 and stricter bancassurance rules in 2024, are aimed at curbing mis-selling and exorbitant commissions. At the same time, they aim to support new business growth, especially for large insurance companies.
Chinese insurers have also reduced guaranteed returns on policies after several interest rate cuts from 2023. As a result, there has been a shift towards participatory plans. However, adoption is slow.
The introduction of private pensions at the end of 2024 is expected to boost China’s capital markets and encourage innovation in retirement products, the report said.
India’s life insurance market is expected to cross $169 billion by 2029. This will be an annual growth rate of 9.0 percent.
Regulatory reforms in India, greater participation of women and marginalized groups, and continued expansion of insurance initiatives such as microinsurance schemes will drive growth.
Industry premiums are also expected to benefit from the positive changes including raising the FDI limit to 100 per cent and reducing GST on life insurance to 0 per cent.
GlobalData also noted that mature markets such as South Korea, Hong Kong, Japan, and Taiwan are driving the demand for senior citizen-focused insurance products driven by an ageing population. By 2025, more than 20 percent of people in Japan and South Korea will be 65 years of age or older. By 2030, this share is expected to reach 32.3 percent in Japan and 30.8 percent in South Korea.
Insurance companies across the region are developing indexed global life insurance products, legacy planning solutions, and trust-based payments to meet the growing demand for high net-worth individuals.
China’s HNWI population is projected to increase from 4.8 million in 2025 to 5.9 million by 2029. This is expected to increase by an average of 5.5 percent annually.
“Insurers that use AI effectively and create specialized insurance offerings for older customers and high net-worth customers will be better positioned to manage economic hardship and capture growth opportunities,” said Manogna Wangari, an insurance analyst at GlobalData. Source: Insurance Asia
