This paper hightlights the important of the insurance industry and re-insurance industry ( together called re/insurance) to the member states of the Association of Southeast Asian Nations ( ASEAN ). The re/insurance industry plays a unique role within the finalcial services sector, providing financial protection for individuals, companies and other organizations. Insurance products service the long term retirement and saving needs of consumers, thereby reducing pressure on government budgets. As major institutional investment, re/insurance companies drive economic development, mobilize domestic savings into more dynamic and productive long term capital, as well as play an essentail role in the development of capital market.
By 2015, the ASEAN Economic Community ( AEC ) will establish ASEAN as a single market and production base, with freer movement of business persons, skilled labour and capital, However, full liberalisation of the insurance industry is not a target for 2015. As the Asean region continues to enjoy strong economic growth, income levels will rise, and the demands for financial service, including insurance products, will increase. The ASEAN vision for 2020 provides a foundation for an insurance industry that can meet the needs of consumers. Download Click here for document.