Friday, January 20, 2017

Life Insurance Sector Dominate Peru Insurance Industry: Ken Research

Ken Research has announced publication titled, “Life Insurance in Peru, Key Trends and Opportunities to 2020” which provides in-depth market analysis, information and insights into the Peruvian life insurance segment and a detailed outlook by product category for the Peruvian life insurance segment, and a comparison of the Peruvian insurance industry with its regional counterparts.
This report provides a comprehensive analysis of the life insurance segment in Peru and well assesses the competitive dynamics in the life insurance segment identifying the growth opportunities and market dynamics especially in key product range.
life-insurance-businesses
It details the key performance indicators such as written premium, incurred loss, loss ratio, commissions and expenses, total assets, total investment income and retentions during the review period and forecast period that offer a significant analysis of the key categories in the Peruvian life insurance segment, and market forecasts to 2020. It helps in comprehending the demand-side dynamics, by profiling the top life insurance companies in Peru and outlining the key regulations affecting them, key market trends, and growth opportunities in the Peruvian life insurance segment.
The life insurance segment was the largest in Peru insurance industry. Peruvian consumers favored simple, savings-oriented life insurance products with more protection choices and as a result the pension and individual life products were leading life insurance product categories particularly during 2012.
Direct marketing was one of the superior distribution channels for life products in Peru. In August 2014, the SBS made a compulsion for all independent workers under the age of 40 to contribute to the private pension system for making the need of life insurance and related policies felt.
Life insurance became the largest segment in Peruvian insurance that accounted for 47.9% of the industry's gross written premium and Insurance penetration in the life segment was 0.9% in 2015.
The Peruvian life segment was stabilized, with the 10 leading companies accounting for 99.0% of the segment's direct written premium in 2015. The opportunities for year 2020 can be predicted well, although their accuracy at the real time cannot be predicted, but for sure opportunities are guaranteed since the insurance policy related regulations are changing and improving and this segment of insurance carries a significant proportion of the insurance sector.
Key Factors Considered in the Report
Global Life insurance industry
Non-life insurance industry
Peru life insurance market research
Life insurance sector trends Peru
Peru life insurance regulations
Life insurance companies Peru
Peru Insurance Gross Written premium
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

Thursday, January 19, 2017

Indonesia Used Car Industry Outlook To 2021: Ken Research

How have been the Performance of Indonesia Used Car Industry?
Decades ago, the used car market in Indonesia was dominated by unorganized players including self-appointed used car dealers, car owners and road side mechanics that were not certified by the government. Word of mouth advertising was one of the main marketing channels and no major companies were operating in the used car space. The lack of organized players in the used car business meant low choice and information asymmetry for buyers.
While the conventional system of buyers meeting sellers face-to-face in the marketplace is still the dominant practice in society, more Indonesians are seeing the online market as a great alternative means for making purchases. The gross transaction value (GTV) of the used car industry inclined to USD  billion during 2016 from USD ~ billion during 2011, achieving a CAGR of ~% during 2011-2016. The sales of used cars inclined from ~ units in 2011 to ~ units during 2016, achieving a CAGR of ~% during 2011-2016. The gross transaction value generated from unorganized segment stood at USD ~ million during 2016, which has contributed ~% to overall used car transaction value during the same period. The unorganized sector witnessed total sales of ~ units of used cars during 2016, contributing ~% to overall used car sales during the same period.
Market Share of Major Players
OLX achieved a share of approximately ~% of overall online sales of used cars which was evaluated to be ~ units during 2016. The website first came into existence in 2005 with the name tokobagus.com as the biggest online trading center in Indonesia with around ~ million visits per day. Carmudi achieved a share of ~% of overall used car sales online during 2016 which were evaluated to be ~ units during the same period.
Used cars
Carmudi works similar to OLX, however; the company brings buyers and sellers together and transact between new and used cars only. The company came into existence in 2013 in Germany and entered the used car market in Indonesia during 2014. Apart from online sales, the company also has a strong offline presence established in Jakarta and subsidiaries in Bandung, Semarang, Medan and Makassar.  Mobil88 achieved a share of around ~% in terms of online sales of used car in 2016, totaling to a mere ~ units during the same period. Mobil88 has a stronger offline presence and has recently started building its presence in the online market. Due to this, the company has ~ active listings as on December, 2016.
Future Outlook for Indonesia Used Car Industry
The Gross Transaction Value (GTV) generated from the sale of used cars in Indonesia is projected to augment to USD ~ million during 2011 from ~ million during 2017. The sale of new cars is estimated to increase from ~ units during 2017 to ~ million units during 2019 due to increased sale of economy cars and hatchbacks. The sale of used cars is projected to augment to ~ units by 2021, achieving a CAGR of ~% during the period 2017-2021. 
The reduction in ownership pattern will cause influx of a wide variety of car models into the used car industry, giving customers more choice while purchasing used cars. The sale of used cars through local dealers is estimated to augment to ~ units by 2020, contributing ~% to overall sales during the same period. The sale of used cars through online auto portals is estimated to stand at ~ units during 2021, contributing ~% to overall used car sales during the same period. The increasing internet penetration will be the primary force driving sales through this marketing channel. Online auto portals help buyers understand the prevailing (maximum and minimum) price for their desired car.
The sale of used cars through multi-brand car showrooms is estimated to increase to ~ units by 2021, contributing ~% to overall used car sales during the same period. The sale of used cars from dealers to customers and car owners to potential buyers through word of mouth, newspaper advertisements and magazine classifieds is projected to increase to ~ units during 2021, contributing ~% to overall used car sales during the same period
Companies Cited in the Report
             List of Companies                                              Companies Covered in the Report
              OLX
              Carmudi.com
              Oto.com                                                                     Major Players
              
Mobil88
              
Mobil123.com
Key Factors Considered in the Report
Value Chain Analysis in Indonesia Used Car Industry
Indonesia Used Car Market Size on the basis of Gross Transaction Value and Sales Volume
Market Structure (organized/Unorganized) in Indonesia Used Car Industry
Market Segmentation of Indonesia Used Car Industry on the basis of type of used car, marketing channels, major cities, year of manufacture, vehicle use and other
Customer profile in Indonesia Used Car Market on the basis of Age Group, Income and Gender
Government Regulation in Indonesia Used Car Market
Financing options and Schemes available to potential buyers in Indonesia Used Car Market
Market Share of Major Players in Indonesia Used Car Market
The various Business Models prevalent in Indonesia Used Car Market
Competitive Landscape of Major Players in Indonesia Used Car Market
Trends and Developments in Indonesia Used Car Market
Issues and Challenges in Indonesia Used Car Market
Decision Making Process for Buying a Used Car in Indonesia
Indonesia Used Car Market Future Outlook and Projections on the basis of Gross Transaction Value and Sales Volume
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

The International Cohesive Communication and Collaboration Market: Ken Research

Ken Research announced recent publication on, "Strategic Focus Report on Communications & Collaboration". The report outlines the evolution of communications & collaboration technologies, and identifies and assesses the best performing vendors in the market. This report also presents view of the revenue opportunities in the communications & collaboration market through to 2020, Understand the communications & collaboration landscape, the recent trends, drivers, and inhibitors shaping the communications & collaboration segment. It analysis the communications & collaboration vendor landscape and track their relative performance in the communications & collaboration market to gain a competitive advantage.


To enhance your market segmentation by analysing the revenue opportunity forecasts figure in the communications & collaboration market from 2015 to 2020, spanning six regions, 14 verticals, and two size bands, you may invest time in this exceptional market research report. Lastly, you may understand how organization's communications & collaboration requirements are set to change in the next two years in order to prioritise your target market which outlines the evolution of communications & collaboration technologies, and identifies and assesses the best performing vendors in the market. This report also presents view of the revenue opportunities in the communications & collaboration market through to 2020, highlighting the market size and growth by technology, geography, sectors, and size band.
With the extensive propagation of mobile device users across the world, the necessity for competent communication becomes essential. Pertaining with this, rise in the number of mobile workforce around the world followed by the need to be universally connected with one another for ensuring business continuity has escalated the demand for enhanced communications and collaboration techniques to be incorporated. Thus, the high extent of convenience provided by organizations to boost worker efficiency and enable expansion of business productivity has facilitated the enterprises, Small, and Medium Businesses (SMBs) to expansively consider mobile UC&C solutions within their organizations.
Over the years, the communication techniques have evolved and have been rapidly progressing. Additionally, these widespread advancements in the unified communication methods have expansively enriched the experience of the users. With evident enhancements in business aspects obtained from mobile UC&C solutions, enterprises and SMBs have been intrigued to continue and enhance their profitability through these mobile UC&C services. Mobile UC&C provides massive-scaled inclusive amalgamated solutions for employees to be well connected and work in partnership in intra-office communication and inter-office communication regardless of their location and to concurrently assist their clients for leveraging their business value. The mobile UC&C solutions provide a diverse set of communication and collaboration tools, which include voice solutions; audio, web and video conferencing; and instant messaging, video chats, voicemails, and email facilities to all the users accessible from anywhere over the mobile devices.
Fragmentation by service:
  • Implementation and integration
  • Training and support
  • Consulting
  • Managed services
Fragmentation by deployment type:
  • Cloud
  • On-premises
Fragmentation by user type:
  • Enterprises
  • SMBs
The rising demand for virtualised communications will aid in the strong growth of this market during the forecast period. Recently, it has been observed that many vendors in the market are introducing virtualisation software support in their telephony and UC&C portfolios. Virtualisation can address the issue of running virtualised voice and videos in data centres. It can also assist companies in increasing the number of mobile devices and virtual desktops that are hosted on each data centre server. Therefore, an increase in the demand for mobile virtualisation will aid in the strong growth of this market during the predicted period. The integration of business processes with collaborative applications will be the key driver for the growth of this market. Collaborative applications like instant messaging, email, unified messaging, and voicemail are likely to drive the prospects for growth in this market as most businesses seek a high degree of integration with collaborative applications. The market will also witness a rise in specific collaboration applications that are integrated with business applications to automate processes and reduce manual work.

Fragmentation by application and analysis of the UC&C market

  • Enterprise collaboration
  • Enterprise telephony
  • Contact centre
The enterprise collaboration segment will lead the global UC&C market during the forecast period and will account for an impressive market share by 2020. Recently, many SMEs have been leveraging enterprise and consumer technology solutions to support communications with their customers. These solutions enhance collaboration among employees, suppliers, and clients, and are less expensive, simple to deploy, and more powerful than conventional solutions.

Geographical Fragmentation of the UC&C market

  • Americas
  • APAC
  • EMEA
At present, the Americans dominated this market and are anticipated to retain its dominating hold over the market until 2020 owing to the recent increase in mobility and the explosion of smart mobile devices due to the consumerization of IT. Furthermore, with the rising demand for cost-effective and user-friendly browser-based communications solutions, many prominent vendors will be compelled to introduce vertical-specific Web RTC solutions and services in North America.
The global UC&C market is highly competitive, as the high demand for UC&C among large enterprises and SMEs has intensified the level of market competition. During the forecast period, price wars among the vendors will also increase and will be driven by the need to form high-value partnerships with large enterprises.
The leading vendors in this market are -
  • Avaya
  • Cisco
  • IBM
  • Microsoft
Other prominent vendors analysed in this market study are 8x8, Aastra Technologies, Huawei, Alcatel-Lucent, BroadSoft, Configure, Corex, CSC, Damovo, Dell, Genesys, HP, Huawei Technologies, Interactive Intelligence, Italtel, Juniper Networks, Logitech International, Mindtree, Orange, Polycom, RingCentral, ShoreTel, Toshiba, Verizon Communications, GENBAND, NEC, Mitel, and Unify.
Topics covered in The Report
  • Global ICT market research report ,
  • Communications and collaboration investments,
  • UC solutions Demand,
  • Unified Communications solutions Demand,
  • Communications and collaboration technologies Research,
  • Communications and collaboration Market Drivers,
  • Unified communications and collaboration market trends,
  • Unified communications and collaboration companies,
  • Communications & collaboration investment priorities,
  • Key trends impacting the communications &collaboration market,
For more coverage click on the link below:
https://www.kenresearch.com/technology-and-telecom/telecommunications-and-networking/strategic-focus-report-communications-collaboration/78610-105.html
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Hungary-Telecoms, Mobile, Broadband and Digital Media-Statistics and Analyses 

Sierra Leone-Telecoms, Mobile and Broadband-Statistics and Analyses 
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Ankur Gupta, Head Marketing & Communications
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Mobile Payments and Robo Advisors Moulding Future FinTech Growth : Ken Research

Ken Research announced its recent publication on FinTech market titled, " US FinTech Market Forecast to 2020 - Mobile Payments and Robo Advisors to Shape Future Growth". The report provides a comprehensive analysis of the FinTech market in the US and covers market size and segmentation of overall market by business models. The report covers the further segmentation of different spaces such as Digital Commerce, Personal Finance and Business Finance into sub segments based on the business models. The sub segments (US Digital Commerce Market, US Mobile Wallets Market, US P2P Money Transfers Market, US P2P Lending Market, US Equity Crowd funding Market, US Robo Advisors Market and US Business Lending Market) are then considered separately and analysis on them has been done individually. The report covers detailed profiles of leading players in the different sub segments along with the share of major players in the market.



The potential and future outlook has been individually discussed for the US Digital Commerce Market, US Mobile Wallets Market, US P2P Money Transfers Market, US P2P Lending Market, US Equity Crowd funding Market, US Robo Advisors Market and US Business Lending Market and for the overall FinTech market. The report provides detailed analysis of segments, trends & developments, growth drivers and major restraints and challenges within the industry. It serves as a benchmark for existing players and for new players who wish to capitalize on the market potential and investors who are looking forward to venture into the FinTech market in the US.
UNFOLDING THE KEY GROWTH ASPECTS
US FinTech market has been largely driven by the technological developments such as data analytics, social networks and increased penetration of the smart phones which have led to the emergence of newer models such as marketplace funding, people based marketing and several others. Digital connectivity, faster payment options, lower customer acquisition costs through referrals on the social networks have all contributed to the growth and innovation in the FinTech in the US. Although some suggest that consumers resist robo-advisors, over the past years, the technology has been attracting substantial attention and investments. Financial decision-making is increasingly reliant on algorithms applied to wealth management, personal finance management, investment management, risk assessment and other areas of the financial services industry. The FinTech "uprising" has been reshaping the financial sector by cutting costs and improving the quality of services to the consumer with lower time requirement. The FinTech sector has been evident from a variety of industries ranging from payments to wealth management, Robo-advisors and others. There has been a surfeit of start-ups in recent years. Increased Investments, innovation in technology, digital connectivity, and supportive government are some of the factors among others to spur the growth in the FinTech market in the US. The FinTech market has increased in terms of the transactional value, manifold.
Rapidly advancing robo-advisors allow analysts to look into the future and continuously trade securities and other assets based on long-term predictions they are able to build based on a real-time stream of data and machine learning capabilities. Watsonization, which refers to cognitive computing systems that can interpret massive quantities of data, learn as they go, and will hold an information advantage over today’s analysts are reaching new development levels. They will also give investment firms powerful new tools for interacting with investors, assessing risk, enhancing cyber security and more. The growth and development of the robo-advice industry not only has positive financial implications because of lower fees, but also automated systems facilitated inclusion for mass-market consumers. Those consumers can now afford a tailored advice for better use of their funds. Robo-advice powered by technology diminishes the barriers for market entry to a range of completely new types of players. Both financial and non-financial services firms can take advantage, bringing new levels of competition and innovation to the industry. For instance, we are likely see more asset management and insurance firms adding wealth advice to their distribution and effectively entering wealth management; non-financial service firms with access to large numbers of retail investors and leading-edge technology firms will likely enter wealth management through a robo-advice model.
With the pace of improvement that AI in US markets, machine learning and overall technology goes through, robo-advice has the potential to become highly personalized and specific over time, meeting particular needs of different groups. Algorithms don’t have an affluence towards a particular task like fund allocation; the very idea here is that automated advice can get to the point where it can be tailored to analyse any stream of data by demand and become a highly personalized personal assistant in anything. Recognizing a multi-trillion-dollar opportunity, a range of institutions are already investing in the exploration of big data analytics, machine learning and AI application across industries: in customer acquisition, marketing, customer retention, loyalty programs, risk management, etc. Firms are effectively leveraging these solutions to increase the cross-sell and up sell opportunities, understanding customer requirements and providing customized packaging. Card-linked offers, customized reward solutions are some of the offerings that are being provided by financial technology firms. Robo-advising is not a proprietary breakthrough for investment management; it is a chance for a range of industries to leverage the power of machines in order to jump to the next level of customer service.
Digital payment segment was by far the most revenue-generating segment that saw maximum customer interest and participation. The segment was anchored by the overwhelming sales of e-commerce market in the country. PayPal, Authorize.Net, Stripe and Square were the major payment gateways used by online retail merchants for receiving online payments. Apple Pay, Android Pay, Samsung Pay and PayPal wallet were the most used mobile wallets by customers for making online and in-store payments in the US. Dwolla, Venmo and Chase QuickPay were the pioneers in the space of money transfer.
Consumer finance market witnessed an exponential growth in the last five years. The mobile payment space has already been highly crowded with a large number of players already in the space. The market will stay crowded as more players enter from social networks to banks to retail chains and other tech companies and the already existing players will implement newer strategies to maintain their standing in the market. Albeit the plethora of players operating in the market, the market is still at its infancy stage, growth prospects are still high. Vanguard Personal Advisor Services, Charles Schwab, Betterment, Wealthfront and Personal Capital were the leading players in Consumer Finance Market. Lending Club, Prosper and SoFi were the major players that actively raised money for customers in the country. The market for business finance was almost entirely driven by business lending companies, which raised funds to start-ups from several industries from both accredited and non-accredited investors. Several business-lending companies have entered in the last five years, which approve funds to applicants within no time. Funding Circle, On Deck, Kabbage, CAN Capital and Lending Club are some of the major companies operating in this space amongst others. FinTech companies allowing crowdfunding started since 2012 and were almost a billion dollar industry by 2015. EquityNet, Fundable, Angel List and Crowdfunder are some of the key companies that have the first mover advantage in this space.
Topics Covered Topics
  • US Financial Technology Market
  • Business Lending Market Future
  • Challenges Fintech Market
  • Pulse of Fintech
  • Top Financial Technology Market
  • Robo Advisors AUM US
  • Fintech Companies United States
  • Fintech Market Growth
  • United States Fintech
  • Global Fintech Market
  • US Digital Payments Market
  • US Mobile Wallet Market
  • Market Size Robo Advisors Market
  • Fintech Companies Growth
  • Digital Commerce Market
  • US P2P Lending Market
  • Financial Services FinTech Industry
  • Mobile Payments Market
  • Marketplace Lending Industry
  • US Fintech Market Growth
  • US Fintech Market share,
  • US Fintech Market trends
  • US Fintech Market future
  • US Fintech Market analysis
  • US Fintech Market
For more coverage click on the link below:
https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/us-fintech-market-report/54351-93.html
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204
Ken research announced its recent report on, “Personal Accident and Health Insurance in Malaysia, Key Trends and Opportunities to 2020 “ Report provides a detailed outlook by product category and a comparison of the Malaysian insurance industry with its regional counterparts. It provides key performance indicators such as written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, total assets, total investment income and retentions during the review period (2011-2015) and forecast period (2015-2020). The report also analyses distribution channels operating in the segment, gives a comprehensive overview of the Malaysian economy and demographics, and provides detailed information on the competitive landscape in the country. The report brings together research, modelling and analysis expertise, giving insurers access to information on segment dynamics and competitive advantages, and profiles of insurers operating in the country. The report also includes details of insurance regulations, and recent changes in the regulatory structure.
life-insurance-businesses
General insurance is typically defined as any insurance that is not determined to be life insurance. General insurance or non-life insurance policies include personal accident and health insurance. The Malaysian personal accident and health insurance segment accounted for a 4.2% of the industry's direct written premium in 2015. The share of the insurance industry’s written premiums in 2012 was the lowest share of all the segments. Changing lifestyle patterns and the prevalence of diseases such as diabetes, respiratory disorders and other critical illnesses led to a rise in healthcare expenditure, which is generating a demand for health insurance. The threat of cancer, diabetes and respiratory disorders has encouraged personal accident and health insurers to expand their product portfolios. Rising levels of healthcare expenditure, increasing employment rates and industrial growth drove growth in the segment during the review period.
The Malaysian healthcare system comprises public and private healthcare services and the aging population is expected to drive the segment over the forecast period, due to an increase in demand for cover. The personal accident and health segment is moderately concentrated, with the 10 leading insurers collectively accounting for more than sixty percent of premiums in 2016. The costs associated with private healthcare exclude participation from lower income demographics. However, with industrial growth, positive employment opportunities and rising GDP, the nation’s middle class population is expected to increase over the forecast period and drive growth in the personal accident and health segment.
Rising consumer healthcare expenditure and limitations of public healthcare system will provide new areas of growth. Changing lifestyle patterns and an increase in the prevalence of a number of common diseases led to a rise in consumer expenditure on private health insurance during the review period, with an increasing proportion of the country’s population opting for voluntary medical policies, some of which are provided by employers. The main reason behind the rise in healthcare expenditure can be attributed to the fact that consumers are inclined to avail private healthcare in order to receive a better quality service. Private healthcare is therefore gaining in popularity, despite the guarantee of care under the government’s public healthcare system. The government’s healthcare initiatives ensure health insurance for the foreign working population. However, the insufficient number of public healthcare centres and technological limitations encourage foreign workers to purchase private health insurance.
Rising life expectancy and aging population will, drive growth Increasing life expectancy was a key driver of growth in the personal accident and health segment during the review period. Life expectancy is used to calculate the premium to be paid by policyholders when purchasing a life and personal accident and health insurance policy. According to World Bank data, in 1960, the average life expectancy of a Malaysian male was 59.4 years, and for females, it was 60.3 years. In 2011, this figure reached 72.1 years for men and 76.5 years for women. Life expectancy is expected to increase further by the end of the forecast period. This trend indicates a need for insurers to provide medical plans to cover policyholders beyond the current life expectancy, which will contribute towards the growth of the personal accident and health segment.
The boost in medical insurance premiums this year is a direct result of higher healthcare costs, according to agents who have to bear the bad news to their clients. Calling for insurance companies to justify the increase with facts and figures, Namlifa president James Bong, said the pricier coverage would also hinder Bank Negara’s goal to achieve a 75% insurance penetration rate by 2020 and burden the public healthcare system.
The Malaysian personal accident and health insurance segment is highly competitive, and contains both domestic and foreign insurers. LIAM suggested all stakeholders, including the government, insurance companies, private hospitals and doctors, as well as consumers work together to address the higher costs. Leading companies include: Allianz General, Berjaya Sompo Insurance, Etiqa Insurance, Lonpac Insurance, MAA Assurance, MSIG Malaysia, Tokio Marine Insurance (Malaysia) and Uni. Asia General Insurance. Increasingly, we see companies are involving themselves in the social media space, and undergoing a re-branding to lifestyle and wellness companies, and not just a company that sells insurance. In addition, the increasing and unparalleled progress in technology allows insurers the chance to really reduce and simplify their offerings to the customer, with a handy approach allowing them the chance to connect and integrate themselves into the lives of customers instantly from anywhere. 2020 will be the times of change, and both insurers and operators alike need to be keenly aware of the changes they face from 2016 and beyond.
Key Topics Covered in the Report:
Non-life insurance industry
Global life insurance
Life insurance businesses
Insurance sector worldwide
Malaysia non- life insurance market research
Non-Life insurance sector trends Malaysia
Malaysia General insurance regulations
Health insurance market research Malaysia
Health insurance demand Malaysia
Personal Accident Insurance Malaysia
For more coverage click on the link below:
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

Wednesday, January 18, 2017

Motor Insurance Dominate Non-Life Insurance Industry in Malaysia : Ken Research

Ken Research announced its recent publication on, "Non-Life Insurance in Malaysia, Key Trends and Opportunities to 2020". Report provides a detailed outlook by product category for the Malaysian non-life insurance segment, and a comparison of the Malaysian insurance industry with its regional counterparts. It provides values for key performance indicators such as written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, total assets, total investment income and retentions during the review period (2011-2015) and forecast period (2015-2020). The report also analyses distribution channels operating in the segment, gives a comprehensive overview The report brings together modelling and analysis expertise, giving insurers access to information on segment dynamics and competitive advantages, and profiles of insurers operating in the country.



The report also includes details of insurance regulations, and recent changes in the regulatory structure.
General insurance is typically defined as any insurance that is not determined to be life insurance. General insurance or non-life insurance policies including automobile and homeowners policies. The payment is made proportional to the loss from a particular pecuniary event.  The Malaysian non-life insurance segment expanded during the review period at a review-period CAGR of 6.0%. Notable recent mergers and acquisitions include AIA Group Ltd.’s purchase of ING’s Malaysian insurance business and the acquisition of MUI Continental Insurance Bhd by Tokio Marine Holdings Inc
The Malaysian non life insurance industry is among the fastest emerging markets of the global insurance industry; its stable economic growth and well-developed regulatory framework have drawn the attention of international insurers. With the proposed Financial Services Act 2013 and Islamic Financial Services Act 2013, the implementation of the Internal Capital Adequacy Assessment Process (ICAAP) and the liberalization of the insurance sector, Malaysia provides a competitive operating environment with financial stability and a well-framed regulatory system for the finance and insurance sectors. The small increase in numbers i.e. growth rates reflect more challenging business conditions, especially in the marine, aviation and transit line of business. Malaysia’s central bank, Bank Negara Malaysia (BNM), regulates all insurance entities in the country, including brokers, adjusters and financial advisors. Insurers can only obtain a licence from the Ministry of Finance on the recommendation of BNM, while brokers and financial advisors must be approved by BNM and adjusters are required to register with the bank.
The major lines of business in the general or non-life insurance sector for both conventional and Takaful insurance remain motor, fire, and personal accident and medicalThe composition of general insurers’ funds has remained stable over the past five years, with the majority of assets held in debt securities. In 2012, private debt securities and Malaysian government securities accounted for 25% and 20% of general insurers’ funds respectively. The remainder are cash and deposits (25%); other investments and assets (20%); amounts due to clients (7%); property, plant and equipment (2%); and loans, investment properties and foreign assets (1%). According to BNM data, this segment is concentrated, with the 10 leading companies accounting for 72.5% of the segment's gross written premium in 2015. Leading companies include: Allianz General, Berjaya Sompo Insurance, Etiqa Insurance, Lonpac Insurance, MAA Assurance, MSIG Malaysia, Tokio Marine Insurance (Malaysia) and Uni. Asia General Insurance.

The BNM has announced plans to restructure motor and fire insurance business through detariffication. The act of removing the pricing regulations of an industry, set forth by tariffs created by a regulatory body. Detariffing allows an industry to price its goods or services at market value, as regulation is discontinued to promote market equilibrium. In Malaysia, fire and motor insurance premium rates are currently tariff-controlled, but the underwriting performance of these two lines of business in recent years diverged. Malaysia has not been impacted by any major natural catastrophes in recent years. Malaysian general insurance industry strictly follows fire tariffs, except that some flexibility is allowed for larger risks. Fire business’ underwriting performance has been favourable. Fire tariffs in Malaysia have been adequate and provided general insurers with good profits in recent years. Motor tariffs in Malaysia had not been changed for many years until 2012, which addressed insurance buyers’ affordability concerns on one hand, but resulted in poor underwriting performance in this segment. Gradual revision of motor tariffs began in January 2012 and will be implemented incrementally in the years to come. However, motor business remains unprofitable for many Malaysian general insurers, and the underwriting losses from motor business must be cross subsidized from underwriting profits made in other lines. Malaysia’s general insurance market expects fire and motor tariffs to be abolished in 2016, which have introduce increasing competition in the fire segment and help addressing the unsatisfactory underwriting performance of the motor segment. Abolition of tariffs has benefited insurance buyers, the insurance industry and society in the end.
Motor insurance was the largest non-life category, more than fifty percent of the segment's direct written premium in 2015. Agencies remained the dominant distribution channel in the Malaysian non-life segment during the review period. Motor insurance remains the dominant line of non-life business in Malaysia, with major market share. Although the overall industry’s net claims incurred ratio (NCIR) remained steady throughout 2015, falling in few decimal points, total claims incurred within the motor segment remained exceedingly high. Insurers have benefited from falling vehicle thefts, which dropped however, Malaysia’s high rates of road accidents and fatalities remain a major cause for concern. In 2015 third party, bodily injury claims rose. In the fire segment, meanwhile, growth jumped up, making fire the second-largest non-life segment. The NCIR for fire stayed stable in 2015. Developments in motor vehicle insurance are a grave matter, because the sub-sector accounts for nearly half of all non-life premiums. Health and personal accident insurance should sustain double-digit growth, thanks in part to new users of the latter and in part due to health expense inflation. Property insurance may face economic headwinds. Transport insurance premiums should benefit from the growth in regional trade.
Insurers are increasingly focusing on digitalisation to enhance their customer services platforms.  Increasing price competition and providing more freedom to insurance companies to set the right price for the insurance risks they assume, can encourage innovation and make insurance products more affordable. This will benefit insurance buyers, but insurance companies need to be prudent in managing their insurance claims costs and expenses at the same time. Claims cost management initiatives also benefit insurance buyers by encouraging better risk awareness from the insurance buyer’s perspective – for example, promoting road safety to reduce frequency and severity of traffic accidents in the motor segment, or taking fire prevention measures for property risks. Further, price competition provides insurers with incentives to forecast insurance costs accurately, refine risk classification systems and underwrite carefully to avoid adverse selection. Promoting adequate rates is a key factor in ensuring insurers’ solvency and sustainable growth of the insurance industry in the long run, According to ken Research Analyst.
Topics Covered in The Report
  • Non-life insurance industry Malaysia
  • Global life insurance industry research
  • Life insurance businesses Malaysia
  • Insurance sector worldwide
  • Malaysia non- life insurance market research
  • Non-Life insurance sector trends Malaysia
  • Malaysia General insurance regulations
  • Motor insurance market research Malaysia
  • Property insurance sector Malaysia
  • Health insurance demand Malaysia
  • Malaysia automobile insurance industry research
  • Malaysia four wheeler insurance demand
  • Malaysia General Insurance Industry
For more coverage click on the link below:
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Promising Insurance Industry to Boost Reinsurance in Malaysia: Ken Research

Ken research announced its recent publication on, "Reinsurance in Malaysia, Key Trends and Opportunities to 2020 ". This report provides a comprehensive analysis of the reinsurance segment in Malaysia. It provides historical values for the Malaysian reinsurance segment for the report's 2011-2015 review period, and projected figures for the 2015-2020 forecast period. It offers a featured analysis of the key categories in the Malaysian reinsurance segment, and market forecasts to 2020. It provides a detailed analysis of the reinsurance ceded from various direct insurance segments in Malaysia, and the reinsurance segment's growth prospects. It analyses various natural hazards and their impact on the Malaysian insurance industry Make strategic business decisions using in-depth historic and forecast market data related to the Malaysian reinsurance segment, and each category within it. It can be used to understand the demand-side dynamics, key market trends and growth opportunities in the Malaysian reinsurance segment and to identify growth opportunities and market dynamics in key product categories. Finally, it is well descriptive of the insights into key regulations governing the Malaysian insurance industry, and their impact on companies and the industry's future.
As part of its efforts to promote the country and in particular the island of Labuan in East Malaysia, as new financial centre, the Malaysian government has opened its doors to international reinsurers and brokers. These entities, though, have to comply with the provisions of either the Malaysian Insurance Act or the Financial Offshore Act. The latter was promulgated to govern the development of Labuan as the newest financial centre in the region. Various incentives and benefits have been offered to attract overseas companies to set up operations in this free port where no sales tax, surtax, excise or import and export duties are levied. Among the overseas reinsurers who applied for and were granted licenses under the Malaysian Insurance Act to operate in Malaysia, based in the capital city of Kuala Lumpur are the Munich Re, the Swiss Re, Employers Re, Hannover Re and Gerling Global Re and Toa Re. These reinsurers are also expected to develop and bring in offshore or non-Malaysian business as the intention is for their operations in the country to be regional.
global-life-insurance
Other reinsurers have also been licensed to operate in Malaysia under the Financial Offshore Act. Among other provisions under this law, the reinsurers involved must maintain a registered and manned office in Labuan. Presently, these reinsurers are allowed to maintain a marketing office in Kuala Lumpur, subject to labor restrictions and other regulations. Among the international reinsurers who have received licenses to operate in Malaysia under this act are the AXA Re, Copenhagen Re, Labuan Re, Sumitomo, SCOR, Tokio Marine Global Re and Partner Re.  Physical proximity of the local offices of international reinsurers to the Malaysian insurance companies obviously gives these reinsurers a great advantage over non-registered overseas reinsurers in terms of access to Malaysian reinsurance business. In addition, the guidelines issued by the Bank Negara, the insurance supervisory authority in Malaysia, on general reinsurance arrangements to be followed by the Malaysian insurance companies (issued 21st April 2000 and effective 1st June 2000) can be regarded as working in favour of the locally-registered reinsurers.
These guidelines were issued, in the words of the Bank Negara, to “promote the development of a sound and stable insurance industry, in particular, a mature and dynamic reinsurance market; and to “preserve the integrity of the Malaysian insurance market by protecting insurers and ultimately policy owners, from solvency threats arising from difficulties encountered in recovering reinsurance balances from reinsurers.” The major sections of the guidelines cover the topics of Appropriateness of Retention Levels; Security of Reinsurers; Spread of Reinsurers; and Appropriateness of Reinsurance Contracts. Among the salient provisions of these guidelines are:
  • The reinsurer must be legally set up in accordance with the laws of its home country and has been authorised to carry on reinsurance business in other countries and Malaysia is not precluded.
  • The use of various tools and publications to assess the capacity and financial strength of the reinsurer. In the case of overseas placements, insurers must ensure that the reinsurers they use for such placements must have a minimum of “A” rating by an accredited rating agency or have a combined paid-up capital and surplus of at least USD 150 million.
  • Total reinsurance cessions (facultative and treaty) to foreign reinsurers should not exceed 50% of the direct-writing company’s total reinsurance premium.
  • No one foreign reinsurer shall hold more than 25% of a risk in the case of a lead reinsurer and 10% of a risk in the case of other participants
  • In general, insurers shall ensure that their reinsurance arrangements fall in line with national aspirations and to the extent possible, accord priority to optimisation of the Malaysian insurance capacity followed by Labuan, before securing foreign reinsurance support. In addition, Combined Liability Excess of Loss covers are retained almost 100% within the country.
Hence, even without restrictions on the amount and kind of business, which can be reinsured overseas, it is apparent that less and less business will come out from the Malaysian market. With the strengthening of the Malaysian domestic reinsurance market, Malaysia, through its locally registered reinsurers and intermediaries, is able to attract inward business from overseas and is able to challenge Singapore and Hong Kong to become the newest regional reinsurance centre for Southeast Asia.
Warren Buffett’s Berkshire Hathaway is set to enter the Malaysian reinsurance market, having received a license from Labuan FSA to provide non-life products in the country, through its Berkshire Hathaway Specialty Insurance Company (BHSI) arm. Berkshire Hathaway has been expanding steadily into Asian and Pacific insurance and reinsurance markets, as the firm seeks to diversify globally and source premiums from the faster growing markets of the world. After putting down roots in Singapore, Hong Kong, and Macau, they feel pleased to further expand their operations in Asia and bring facultative reinsurance capacity and new products with the backing of our strong balance sheet to selected Malaysian insurance partners. With the opening of Malaysian office, they shall continue to deepen the underwriting and claims capabilities in this region. Now with license to sell reinsurance in Malaysia in hand, Berkshire Hathway has established an office in the capital Kuala Lumpur, naming Gaithrie Nandrajog as Branch Manager and Koo Kang Wuu as Executive & Professional Lines and Business Development Manager. Through this Asian expansion Warren Buffett is laying a framework to provide its insurance and reinsurance products more widely into these markets, which is essential if the firm is to take advantage of economic and industrial growth in the region.
Key Topics Covered in the Report:
Non-life insurance industry
Global life insurance
Life insurance businesses
Insurance sector worldwide
Malaysia non- life insurance market research
Non-Life insurance sector trends Malaysia
Malaysia General insurance regulations
Motor insurance market research Malaysia
Property insurance sector Malaysia
Health insurance demand Malaysia
Malaysia automobile industry research
Malaysia four wheeler demand
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249