India, Sri Lanka and the Philippines are some markets that show future promise for international insurance markets.
According to industry experts Asia continues to be a source of investment and expansion for health insurers as the European economy struggles. Several of the less developed countries in Asia in particular, are showing significant amounts of promise and could be the escape route established international companies need to avoid the financial turmoil in much of Europe and the USA.
A recent survey from economic consulting firm, Nathan India, has shown that one in 10 people living in India is likely to buy health insurance products by 2015. This would increase the market from 2% of the population to 10%. In 2011 alone, the Indian health insurance industry experienced a growth of 36.9%.
With more insurance companies developing online platforms more people are accessing and understanding health insurance. They can easily compare and purchase insurance policies online.
International insurance companies such as Star Health and Max Bupa have already recognized the opening market. They currently have a strong hold on the private sector and are seeing an increase in the number of Indian hospitals registering with them.
Sri Lanka is seeing similar growth in the insurance market as is the Philippines. Changes to healthcare laws in Vietnam have also opened the way for international insurers to consolidate their foothold.
The Asian market in general is a difficult one to negotiate say industry experts, Globalsurance. The gap between the very wealthy individuals and those less fortunate is very wide. This makes it difficult for companies to reach their whole audience and trigger sufficient growth. This could be why some international insurers are reluctant to experiment with the market.
Local Asian insurers tend to struggle in dealing with wealthier clients as they lack the expertise required when managing higher level claims expected by high-level net worth clients. This is where acquisitions and mergers with global companies pave the way for opportunities for foreign investors.