Canada's Sun Life sees region contributing 25% of income in 5-6 years

Sun Life Financial expects Asia's contribution to its income to rise to about 25% in five to six years, from 18% at present, driven by its push to sell insurance products via digital channels and higher demand after the coronavirus pandemic, reported Reuters.

The Canadian insurer has recently ramped up its digital capabilities in some Asian markets, helping it cushion the impact of a slowdown in physical sales by agents amid virus-related lockdowns, the president for Sun Life Asia said.

It will further bolster its digital capabilities to tap into a growing awareness of life and health insurance products in a region where insurance density is quite low, Mr Leo Grepin added.

“We think that is, and that’s going to be even more going forward, a competitive advantage,” he said. Sun Life has a presence in seven markets in Asia, including China, Hong Kong, India, and the Philippines.

Asia is a promising market for global insurers due to the low penetration of insurance and fast-growing economies. While an economic slowdown and a drop in income has created near-term challenges, the pandemic has also raised awareness about the need for insurance in Asia, Mr Grepin said.

“The awareness will stay (and) the economic side of the crisis will resolve itself,” he said, adding Sun Life was already seeing a rebound in sales in China and Hong Kong.

Sun Life’s underlying profit from Asia rose 27% in the first quarter, with most of the earnings coming from before lockdowns were imposed in March, versus 8% and 7% in the US and Canada respectively.

Source: Asia Insurance Review

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