Opportunities for entry in formerly regulated Asian markets present new challenges.
The financial crisis that hit the Asian markets at the end of the 1990s has left financial service companies struggling to meet capital requirements in a marketplace where their customers have less purchasing power. This has created opportunities for external players to enter the market or strengthen their existing position through further acquisitions. At the same time, China has continued to gradually open up to overseas markets and legislation has recently been passed that will enable foreign life companies to start to enter the currently nationalised Indian life insurance market.
Products are typically sold through commission based traditional sales forces using old style products. However, lessons learned from other markets and recent technology changes offer opportunities for Asian companies to leap-frog much of the product and distribution developments that have occurred in the western world.
These changes have created a need for actuarial advice on capital management, embedded values, appraisal values and distribution opportunities.
