Why Asia-Pacific insurance is expanding with regulatory reforms

Some markets require formal assessments, creating opportunities for industry players.

AM Best sees strong growth across Asia-Pacific driven by low insurance penetration, regulatory modernisation, and expanding market opportunities. 

Rob Curtis, AM Best’s Asia-Pacific Managing Director and CEO, told the 21st Singapore International Reinsurance Conference that Asia-Pacific remains one of the world’s most promising regions for insurance growth, supported by a young population and significant untapped market potential.

The Asia-Pacific Insurance Market Report report covers 16 countries and examines economic, political, and financial system risks, alongside performance assessments for delegated underwriting authority enterprises (DUAEs) and managing general agents (MGAs).

Curtis noted that regulatory changes are shaping the industry, particularly the rollout of risk-based capital frameworks and Own Risk and Solvency Assessment (ORSA) requirements. 

“That's really providing a real stimulus to the regulatory developments within APAC.  It does provide increased analysis around risk and capital that has not necessarily been there before in a lot of markets in APAC. This is a real key development that we're seeing,” Curtis said.

He added that some markets, such as Australia, are now requiring formal assessments of service providers, including DUAEs and MGAs, creating new opportunities for these players.

DUAEs and MGAs play a key role in providing additional market capacity.

“This is a very new development, which is now being rolled out in Australia. Fortunately, our performance assessment for DUAEs can assist in that regard,” he said.