Asia has become the fastest growing life insurance market globally, according to AIA Group Chief Marketing Officer Chris Wei.

“In Asia, life insurance premiums are growing by 17% (annually) compared to 11.6% in Europe and 4.9% in North America, “ he told the Financial Services Council conference in Melbourne last week.

“And there is opportunity for further growth as the life insurance market in Asia is worth only $US358 billion ($398 billion) compared to $1,015 billion ($1,128 billion) in Europe.”

But for companies to succeed in Asia they must understand the cultural differences and the business culture,” Mr Wei said, using the Philippines as an example.

“In the Philippines to talk to somebody about insurance is seen as a jinx, as they believe the event will happen if they take out a policy.”

It’s also important to have product diversity to match the different demographics and their needs, Mr Wei says.

“In Hong Kong people want critical illness insurance, but in Thailand they want savings and accident cover,” he said.

“In Korea they want cancer cover because whenever a person disappears from a TV soap opera they always die of cancer!”

Mr Wei says Shariah law also has to be considered when offering insurance products in countries such as Malaysia, and any joint venture with a local company would probably have to be a mutual to comply.

“Asia is a compelling story which consists of both emerging and mature markets,” he said. “While Hong Kong and Singapore are mature markets, there are still opportunities in other Asian countries with low insurance take-up.”