Friday, February 7, 2014

RnRMR: Insurance Market in Macau 2017



In an economy that is dependant around tourism, gambling and manufacturing the financial services sector is gradually increasing, the insurance industry in particular.

The area of Macau is one of two special administrative regions of the People’s Republic of China (PRC) and has the second highest life expectancy rate in the world of 84.43 years. With such high life expectancy, the aging population drives a demand for pension and health insurance policies as they use these products to safeguard their financial positions once no longer working. Coupled with particularly expanding casino developments and a wide range of compulsory insurance categories, these key factors driving the insurance industry in Macau with CAGR of 11.8% already recorded during the review period of 2008-2012.


Infrastructure development in the Macau region has also been a crucial to the continued growth of the insurance industry and are expected to continue over the forecast period. Particular developments of worth are, amongst others, the Macau Light Rail Transit System, the Guangzhou-Zhuhai Intercity Mass Rapid Transit System and the casino resort by Metro-Goldwyn-Mayer (MGM), with a value of MOP20.0 billion (US$2.5 billion).


One of the fundamental reasons why the Macanese insurance industry was largely unaffected by the global financial crisis is the well- regulated, mandatory policies made available over a large number of categories by the Monetary Authority of Macau. With insurance available for motor vehicles, employee compensation, personal and professional liabilities amongst others, this highly regulated, structured environment is key to the industries success.


Multinationals mainly operate in Macau through subsidiaries or branch offices, and most are based in Hong Kong or Bermuda. The Macanese insurance industry was led by the life segment in 2012, with a 69.4% share. Companies operating in the life segment led the overall industry in terms of gross written premium. Life insurer AIA led the Macanese insurance industry in 2012 with a 27.3% share, followed by China Life Insurance, which also operates in the life segment. Of the 10 leading insurers in Macau in 2012, seven were life insurers.


Reasons to buy:
  • Increase your knowledge of the factors affecting the Macanese insurance industry.
  • Minimize the business risks you may face within this market.
  • Obtain a better understanding of the regulations introduced and how they affect the industry.
  • Gain a clear understanding of market opportunities and entry strategies to gain or grow your market share in the insurance industry in Macau.
  • Receive the information needed to gain a greater understanding of the technological trends in the insurance industry.