Zurich Asia Pacific reports robust growth in 2023

Zurich Asia Pacific reports robust growth in 2023 | Insurance Business Asia

Insurance News

2023 marks a period of technological innovation and market expansion

Insurance News

By
Roxanne Libatique

Zurich Insurance Group’s Asia Pacific division has unveiled its annual financial outcomes for the year concluded on Dec. 31, demonstrating notable growth in its operations.

In a release, the group confirmed that the division’s strategic focus on customer needs has resulted in increased financial performance.

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Key figures

The company’s life and savings arm saw a remarkable increase in new business premiums, with figures reaching US$2,939 million, marking a 44% surge compared to the previous year.

Meanwhile, the property and casualty (P&C) segment reported an 11% rise in gross written premiums (GWP), totalling US$3,612 million.

Operating profits for Zurich Asia Pacific rose to US$565 million, an 18% uplift from 2022. The company also reported an expansion in its customer base, growing by 7% to 11.7 million, alongside achieving its highest customer satisfaction levels to date.

Life and P&C lines of business

Significant growth was also reported in the life sector, with a business operating profit increase of 88% compared to the prior year, largely fuelled by robust sales in Japan and Australia.

Meanwhile, the P&C sector witnessed an 11% increase in premiums, driven by retail travel and motor insurance lines, as well as a strong performance in the commercial insurance segment.

Tech-related efforts

In 2023, Zurich’s focus on customer-centric strategies, supported by advanced analytics and artificial intelligence, led to unprecedented levels of customer satisfaction in the Asia Pacific region. The insurer also increased its retail customer count by more than 760,000 to a total of 11.7 million.

Technological advancements have been key to enhancing Zurich’s customer service. The introduction of Zurich Edge, a digital platform, marks a significant step in offering innovative insurance solutions and engaging customers within a digital ecosystem.

Tulsi Naidu, Asia Pacific CEO for Zurich Insurance Group, acknowledged the significant financial and operational achievements in 2023, crediting them to diligent market-specific strategies and enhancements across their service platforms.

“We delivered very strong financial and operational results in 2023 with broad-based progress across our markets in the Asia Pacific region. This solid performance is the result of focused execution in each of our markets and the product of ongoing actions to strengthen our platform across the region,” he said. “We will continue to build on this progress in 2024, further leveraging and embedding new technology to deliver exceptional customer service and drive greater value for our partners.”

Expected to close this year, Zurich announced its strategic entry into the Indian market through a partnership with Kotak Mahindra Bank, aiming to acquire a majority stake in Kotak Mahindra General Insurance. This move signifies one of the largest foreign investments in India’s insurance sector following the 2021 regulatory changes that allowed for greater foreign ownership.