Australia: Insurance mart Down Under attracts Asian interest
Source: Asia Insurance Review | Jul 2018
Asian life insurers, led by those from Japan, are buying up their Australian peers amid strong prospects for the country’s insurance market driven by a rising population.
Australia’s life insurance market has been growing around 10% annually, reports Nikkei Asian Review. In addition to public pensions, the country has the superannuation scheme. Over 90% of residents have life insurance, mainly through these pensions – an exceptionally high rate. Despite this, an insurance gap exists. Coverage for deaths reaches only about 60% of the amount considered necessary, along with less than 20% for disability insurance.
In June, T&D Holdings subsidiary Daido Life Insurance acquired a 14.9% stake in Australian start-up Integrity Group worth about JPY1.1bn ($10m). Integrity mainly handles products such as medical and life insurance, using digital technology to provide greater transparency for customers.
Dai-ichi Life Insurance made local provider TAL, a wholly owned subsidiary in 2011, and Nippon Life Insurance acquired National Australia Bank’s life insurance unit MLC for about JPY180bn in 2016. MS&AD Insurance Group bought local annuity provider Challenger for about JPY44bn last year.
Among non-Japanese insurers, AIA Group of Hong Kong agreed to purchase Commonwealth Bank of Australia’s life insurance arm last year. The deal gives AIA the nation’s top market share, surpassing Dai-ichi Life’s TAL. A