Written life premium in the Asia-Pacific market is forecast to rise to $US1.6 trillion ($2.48 trillion) in 2029 from $US1.2 trillion ($1.86 trillion) this year, according to GlobalData.

The projection implies a compound annual growth rate of 7.3%, and the region will account for 32.4% of global life written premium this year, the consultancy says.

“The life insurance industry’s growth in this region is set to be driven by the emerging silver economy, regulatory reforms, growing high net worth individual market, and industry focus on AI platforms,” GlobalData analyst Manogna Vangari said.

China and India will drive the industry’s growth in the next few years.

Ms Vangari says China’s life industry is anticipated to achieve a compound annual growth rate of 9.3% from this year to 2029.

“Distribution channel reforms, lower interest rate environment and positive developments in the pension line of business are expected to contribute to this growth.”

GlobalData expects the Indian life industry’s written premium to surpass $US169 billion ($261 billion) by 2029.

Demographic changes in east Asian economies will contribute to the expected rise in Asia-Pacific life premium.

GlobalData says Japan and South Korea are leading the silver economy trend, prompting insurers to develop new products in response to ageing consumers’ needs.

“Mature life insurance markets in South Korea, Hong Kong, Japan and Taiwan are experiencing a demographic shift towards senior-focused product,” Ms Vangari said.

“Insurers who can incorporate AI throughout their operations and develop products tailored to the needs of the ageing population … will be in the best position to seize market opportunities despite economic challenges.”