Banks dominate this market but insurance firms offer a new conduit for fund distributors, says Cerulli.

Insurance is becoming more of a driver for distributing funds in the Asia outside of Japan, with assets under management rising in recent years to $113.7 billion by the end of last year, accounting for 5.9 per cent of the total, and suggesting further potential growth, a report said. 

Such assets posted an annual growth rate of 23.4 per cent between 2012 and 2016, Cerulli Associates, the analytics firm, said. This gain was behind only independent financial advisors/platforms' rapid ascent rate of 154.0 per cent - which grew from a low base, and is skewed by China's sales of funds through e-commerce sites--and direct/tied agents' 36.3 per cent increase.

Future investment-linked product may be driven by how ILPs pass liabilities to policyholders and create a smaller burden on insurers’ balance sheets compared to conventional savings-type and protection products, the organisation said. 

For fund houses, insurers are attractive as a distribution channel, ranking consistently among the top three or four channels managers are keen to tap into. Banks continue to dominate the scene, but insurers are seen as adding a new route.