Extracted from Economist magazine:
http://www.economist.com/research/articlesBySubject/displayStory.cfm?story_id=15772822&subjectID=348960&fsrc=nwl
Stephan Binder of McKinsey, a consultancy, thinks that people should be insured for 10-12 times their annual income. By this measure, Asians (and, for that matter, everybody else) are woefully underinsured. What’s more, social-security entitlements in the region are paltry compared with other rich countries. So annuity schemes are a natural supplement for retirement income. Japan, the greyest of the Asian countries, is already seeing the effects of demographic change. The dankai generation—which refers to the 8m people born between 1947 and 1949—spent 14.5 trillion yen ($125 billion) on insurance with individual annuities in 2006. And that was before most of them had retired.
Another avenue for growth is in health-care plans, which are undersupplied. In the Japanese market, over half of new policies cover medical costs such as cancer. Other Asian countries are sure to follow as the savvy pre-retirement generation—who no longer believe that their families will care for them, and do not think government schemes will suffice—start to think about their future. Joseph Ngai of McKinsey reckons that rich Asia could see 11-12% growth in insurance premiums
In Singapore consumers are insured up to only 1/10 of the required amount of insurance agents conflict of interest. Although MAS has addressed this issue many times they fell on deaf ears. Insurers and their agents are more interested to peddle wholelife or endowment products which will give the insurers high API and high commission to unscrupulous agents.
ReplyDeleteHow to be insured enough when the insurers and the insurance agents don't want you to be insured enough? They want to make more money out of you. Do you realise it now? or you are still sleeping like MAS.
For the purpose of personal accounting/planning:
ReplyDeleteIs insurance an expense? Y/N
Is Insurance an investment? Y/N
I have always regarded it as an expense. despite some features of it being linked to equities etc.. where the 'units' have appreciated in terms of dollar values.
Can I have some views? anyone?
Thanks
Surprising so third world status here in Singapore.
ReplyDeleteThe taxi is insured by the taxi companies, not the taxi-driver. By right the aggrieved motorist should sue the taxi company, maybe the company quietly advised the taxi driver to discharge the insurer, thereby saving the company the no-claim bonus status.