This presentation gives an overview of the Singapore insurance market by gross written premiums and highlights some product ideas across Singapore, Malaysia and Thailand.

1. SINGAPORE INSURANCE MARKET – AN OVERVIEW
& PRODUCT IDEAS IN THIS NEIGHBOURHOOD
Joyce Cheok
8 Jan 2018

2. 3.4 4.0
6.4
8.9
2011 2016
Local Offshore
16.98
27.42
2011 2016
Local Offshore
Singapore: An advanced yet growing insurance hub, with
moderated growth expectations
Top 5 players: 76%
+9%
5Y CAGR
GrossPremiums
(S$b)
Life Insurance Non-Life Insurance
MarketShare
Top 5 players: 43%
Lloyd's
12%
First Cap
8%
AIG
7%
BRK
6%
AXA
6%
MSIG
5%NTUC
4%
TM
4%
Chubb
3%
QBE
3%
Other (49)
42%
OTHER (13)
5%
AXA
3%
HSBC
3%
TM
3%
AVIVA
5%
OAC
5%
MANU
11%
NTUC
11%PACS
17%
AIA
18%
GE
19%
OUTLOOK: Expect
Moderated Growth
∙ Macroeconomic
conditions
MAS est. 2-3% growth ‘17,18
- Competition
+12 new entrants: soft price
+ Technology
Digital and innovation hub,
customer-friendly products,
new cyber risks
+ Ageing Population
∙ Regulations
IFRS, RBC: Costs, trust
Overall
1.0 → 1.0% GDP (local)5.0 → 5.5% GDP
Y2016 GWP
Total: S$41b
Local: S$31b

3. Group
5%
-
1.0
2.0
3.0
4.0
5.0
6.0
Y2011 Y2012 Y2013 Y2014 Y2015 Y2016
GWP (S$b)
Gross premiums of major insurers in Singapore: Leaders in life,
laggards in non-life
Life Insurance Non-Life Insurance
GELS
AIAS
PACS
NTUC
Manulife
OAC
Aviva
Non
-linked
84 → 87%
Single
Premium
37%
Indiv.
96%
WoL
34 → 42%
Endow.
50 → 42%
Term 4%
A&H 10%
CI/Othr 10%
Annual/
Other
Premium
63%
Group
5%
Linked
17→13%
Term27%
A&H
57→62%
Other11%
Endowment declined in product
mix, WoL filled the gap
Life Insights
• Banks & FAs are key
channels for growth
• Strongest growth products
are Whole of Life (+16%),
Term (+13%), A&H (+11%),
Critical Illness (+10%)
• Minimal annuity products
Non-Life Insights
(Local)
• Larger stakes in motor
(-1%) than the industry
(~45% vs. 30%) slowed
major insurers’ growth.
• Health (+16%), Fire (+7%)
and PA (+6%) led industry
growth.
Events DBS deal, Aviva
+FAs, 2012 regulations
200
250
300
350
400
450
500
Y2011 Y2012 Y2013 Y2014 Y2015 Y2016
AIG
AXA
MSIG
NTUC
First Cap
Top 5’s growth lag industry’s +3%
AIG AXA MSIG NTUC First
Cap
0
50
100
150
200
250
300
350
400
450
500
2011 2016 2011 2016 2011 2016 2011 2016 2011 2016
Marine Fire Motor Work Injury PA Health Misc
Motor declined while health & PA
compensated
S$m
Top 3’s growth lead industry’s +10%
Local GWP (S$m)
Key Takeaway:
Strong prospects in
Life & Health products

4. Market
Singapore Malaysia Thailand
Economic
• GDP
• GDP 5Y CAGR
• GDP per capita
US$ 297B
+4%
US$ 53k
US$ 296B
+5%
US$ 10k
US$ 400B
+3%
US$ 6k
Demographic
• Population size
• Proportion age 65+ in 2016A
• Proportion age 65+ in 2050E
5.6M
13%
33%
31M
6%
17%
68M
11%
23%
Insurance Industry
• GWP
➢ Life
➢ Non-Life
• GWP 5Y CAGR
• Insurance penetration (GWP/GDP)
• Insurance density (GWP/capita)
US$ 20B
US$ 17B
US$ 3B
+6%
6.5%
US$ 4319
US$ 12B
US$ 8B
US$ 4B
+6%
4.1%
US$ 384
US$ 22B
US$ 16B
US$ 6B
+12%
5.5%
US$ 264
Key Takeaways
All three markets are sizable,
Asian economies with 2-5%
growth expectations
SG’s people are
wealthy & aging.
SG’s mature market
is growing well.
MY is less wealthy
and young.
MY’s young market is
growing but muted,
perhaps due to reg.
TH’s people are less
wealthy but aging.
TH’s ins. market is
growing well.
Market comparison across Singapore, Malaysia and Thailand:
A neighbourhood with favourable economics & demographics

5. Key product ideas: Seize opportunities in aging demographic &
regulatory changes
Singapore Malaysia Thailand
Idea Dementia Insurance Smooth-Driver
Insurance
SMO Service
AIA Vitality for dementia +
Public-Private partnership
Drivers are rewarded for
better driving with telematics
Access to international
health experts as a VAS
Target
Customer
Elderly and people without
insurance
Safe and app-savvy drivers Unable to afford CI or
anticipated difficulty travelling
for international SMO
Key
Features
Eligibility subject to certain
volunteering or creative
work completed with
community centers
State / CC / MOH / HPB
support in marketing
outreach, subsidies,
research
More personalized and
better pricing
App reports and advises on
driving patterns
Easy access to international
leading medical specialists
worldwide for SMO on severe
diseases
Easy access to accredited
medical advice
Low price

6. Key product ideas: Meet market developments
Singapore Malaysia Thailand
Idea Dementia Insurance Smooth-Driver Insurance SMO Service
Key trends Aging population
Dementia cost $1B p.a.
Increasing customer
appreciation of financial
planning
State support for aging
services
Growing research on
local incidence & severity,
mitigation methods
Relaxed motor & fire tariffs
regulations since Jul 2016-17.
US$2B motor market where
insurers expect to pay $1.30 for
every $1 collected.
5+ insurers filed new motor
products with regulators and
launched marketing campaigns
Big data - motor partnerships,
e.g. KATSANA with 4 insurers
Aging and large low-
budget population
Increasing interest in CI
‘Best Doctors’ launched by
local insurer in Indonesia,
AIA Thailand launched AIA
Vitality
Bain survey suggests high
customer loyalty for
insurers offering
ecosystem services
Ideas with possible alignment across economic, regulatory, demographic, tech & operations,
marketing & distribution, external partners’ considerations that meet customers’ needs.

7. Logistics of product innovation: Prototype, reassess and iterate
Idea Creation
Focus groups
Market research
Design
Execution
Distribution, Actuarial,
Underwriting, IT,
Reinsurance, Ops,
Ext. Partners
Launch
Prototype
Marketing
Monitoring
Actual vs.
Expected
Market risks
Weak economy
High inflation
Insurance
Risk
Higher claims
than expected
Anti-selection risks
Operational
Risks
Marketing effective
Tech & partners
Product Development Cycle Key Risks

8. Q&A
Joyce Cheok
M: + 65 8320 7819
E: joycecheokwy@gmail.com