BANCASSURANCE OPPORTUNITIES ABOUND IN ASIA

Bancassurance offers huge opportunities for rapid expansion across Asian markets, delegates at the International Insurance Society’s annual conference were told. Bruce Howe, chief representative of HSBC Life International Ltd in Hanoi, told delegates at the event that demographics across Asia meant that there was considerable profit to be made by focusing on life business in emerging markets in the region. He said the ageing population in the region meant that the greatest need was for life and protection products. “Once people pass 50, they stop borrowing money”, he told delegates in Taipei. “That’s bad news for banks, but the good news is they are buying more savings and investment products as they are worried about retirement.” He pointed out that the over-50s age group possess around 70% of personal financial assets across the world, and this was unlikely to change in the next half-century. “Demographics are very hard to change quickly. Big wars and baby booms can make a change but not in a short time period. There are going to be a lot of retirement needs in Asia. And across the continent, very large market shares of life insurance premiums are being distributed by banks.