LIMITED ACCESS

2013 State Street Insurance Survey

• This survey, sponsored by State Street and conducted by the Economist Intelligence Unit, examines the current state and future outlook for the global insurance industry

• Fielded during April 2013, the survey encompassed 307 senior insurance executives globally, of which 110 were based in Asia Pacific

About the Research

1

57%

1%

22%

8%

12%LifeHealthP&CReinsuranceDiversified

22%

15%

14%14%

35%IndiaJapanChinaSingaporeOther

APAC Respondents by Country APAC Respondents by Industry Sub-Sector

LIMITED ACCESS

Key Challenges Facing Insurers in Asia Pacific

Managing Risk

Improving the assessment and pricing of risks

Balancing liquidity and reserve adequacy

Regulationand Compliance

Adapting to evolving insurance regulations

Ensuring transparency of business policies and processes

Driving Innovation

Bringing new, innovative products to market quickly

Adapting distribution to changing demographics

Finding New Sources of Value

Effectively allocating capital to the most business-critical priorities

Investing in more complex investment types

Optimizing BusinessStrategy

Converting fixed costs to variable costs

Using data more effectively across our company

56%

61%

49%

50%

51%

57%

58%

48%

61%

50%

33%

25%

27%

22%

45%

20%

30%

37%

28%

19%

Minor challenge Major challengeSource: 2013 State Street Insurance Survey, conducted by The Economist Intelligence Unit 2

Bringing new, innovative products to market quickly is by some marginthe top business challenge cited by APAC-based insurers

LIMITED ACCESS

Growth Opportunities for Insurers in Asia Pacific

APAC Insurers’ Views on Greatest Opportunity for Their Business in the Region

Source: 2013 State Street Insurance Survey, conducted by The Economist Intelligence Unit CORP-0758 3

• Nearly one-third of insurers in APAC think that the growth of mobile and web distribution channels represents the single greatest opportunity for them, second only to demographic trends in the region

• Seizing these opportunities is not easy: 77 percent see some degree of challenge in adapting distribution strategies to changing demographics

• APAC insurers must also contend with more multinational firms entering these markets, with 90 percent describing this increased competition as a concern for their business today

Demographic trends and new distribution channels are creating opportunities for insurers in Asia Pacific

44%

31%

17%

7%

1%

Overall demographic trendsGrowth of mobile and web distribution channelsHealthcare reformPension reformOther