Continued income diversification provided added resilience and enabled RGA Asia Pacific to generate $88 million in pre-tax income in 2021. The segment built on its strong position as a regional leader and was recognized by Asia Insurance Review as “Life Reinsurer of the Year” at the 2021 Asia Insurance Industry Awards.
Asia Pacific operations serve clients throughout the region from offices in Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Singapore, South Korea, and Taiwan. Primary reinsurance products include individual and group life, living benefits, health, high net worth, Retakaful, superannuation, annuity, and financial solutions.
Product innovation remained a key differentiator for RGA in the region and a primary driver of business growth. The Hong Kong team employed a consumer-focused approach to critical illness (CI) product development that embraced modular, treatment-based, and catch-all offerings. In Japan, new product launches increased by 20% compared to 2020, driven primarily by growth in medical and cancer coverages. RGA Korea partnered with clients to introduce and improve comprehensive health products, including enhancements such as juvenile and dementia benefits. The Southeast Asia team tailored product development efforts to address market-specific coverage gaps, such as retirement protection, family CI, and safety-net CI solutions. In response to market-wide impacts of COVID-19-related claim costs in India, RGA adapted reinsurance offerings to reduce risk and improve returns moving forward.
Across the region, RGA partnered with clients to accelerate insurance processes and facilitate digital consumer engagement.
Across the region, RGA partnered with clients to accelerate insurance processes and facilitate digital consumer engagement. In Japan, where RGA again led the market by underwriting more than 68,000 facultative cases, a collaboration with RGAX produced an innovative automated underwriting solution powered by AURA NEXT, RGA’s data-driven decision management platform. The Korea team developed a predictive mortality risk score in collaboration with the market’s leading credit bureau and expanded client adoption of a data-driven underwriting tool. RGA Taiwan worked with clients to access underserved customer segments through remote agent and broker interactions and digitalized application processes. A range of innovations in Southeast Asia included a digitally distributed diabetes product, an online system for clients to submit health claims, and a data-based underwriting approach to bancassurance.
The Asia Pacific Global Financial Solutions (GFS) team built on its growth trajectory of recent years and produced strong results in 2021, increasing pre-tax income by 66% over 2020 to reach $98 million. Clients seeking capital relief from regulatory changes fueled greater demand for asset-intensive solutions, most notably in Japan, where RGA executed a large in-force transaction with a longtime client. GFS continued to diversify its portfolio across the region, expanding capital solutions business in China and flow business in Hong Kong, as well as executing the Korean market’s first-ever coinsurance transaction.
RGA’s long-term strategy in Australia generated stable financial results in 2021 and continued to position the company for future growth as market conditions evolve. RGA Australia worked closely with clients to establish disciplined approaches to writing new business and managing claims. The Australia team also partnered with insurers to capitalize on emerging opportunities, such as launching new products to meet demand for disability coverage, while maintaining focus on sustainable growth over the long term.