Fitch Ratings has published a special report titled "North American Insurers in the Asian Markets". This report provides the analysis and perspective on the Asian insurance sector and selected North American insurers' history and current position in the Asian markets.
The report includes research and analysis on the insurance sector in 12 Asian countries and describes the opportunities and risks in these markets. Asia has become attractive to North American insurers due to the relatively high growth potential. Several major North American insurers deploy well-organized operations in broad Asian countries and their Asian operations have played a meaningful role in driving stable growth and mitigating some risks in their domestic markets, according to Fitch.
Fitch notes the uniqueness of each Asian insurance market. Some are developed and mature like Japan, South Korea, Taiwan and Hong Kong. Others are emerging like Thailand, Indonesia, Malaysia, the Philippines and Vietnam. The huge potential markets of China and India are dominated by a few government-owned or domestic insurers due to high barriers to entry imposed by government policy/regulations.
Foreign insurers have taken divergent paths in Asia with some growing their presence and others divesting operations. Recent changes of regulatory and competitive environments have been a challenge to North American insurers. The report notes that a strategic approach to Asia is needed and dabbling in markets far from home is not sustainable.
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