Insurance Rises As Driver Of Fund Sales In Asia Ex-Japan - Study

Editorial Staff

22 December 2017

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, , 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.