Abstract
This Financial Insights report analyzes the complex developments taking place
in the mature insurance markets of Australia, Japan, South Korea, and Taiwan.
It categorizes these developments into structural changes, which involve basic
movements in buyer power, supplier power, intensity of rivalry, other industry
forces, and critical issues which may eventually result in structural changes.
It is risky from a corporate survival and competitive strategy viewpoint for
insurers to ignore structural changes such as demutualization and climate
change and critical issues such as the need for a refresh of processing
processes and technology. All of these changes and issues have the potential to
cause significant monetary loss to insurers, and they arise from marketplace
characteristics that will persist in the medium to long term.
"In mature insurance markets, the most effective corporate strategies are built
on a clear identification and ranking of risks in the competitive environment
coupled with a detailed action plan for meeting those risks. Generic strategies
such as ' cost leadership' or ' niche establishment' aren' t good enough," says
Batara Siagian, senior research manager.
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