The collapse of currencies, stock, and property prices during the Asian economic crisis dramatically reduced the solvency of many of the regions insurance companies. In response, several national regulators have enforced stricter financial requirements, forcing many insurance companies to seek new sources of capital. Now, local insurers are developing a more open attitude to the threat, and opportunity, of mergers and acquisitions.
In addition, several governments particularly in Southeast Asia have relaxed laws on financial sector foreign investment. This, coupled with the decline in values, has aroused the interest of multinational insurance companies in expanding their Asian franchises.
These developments have set the stage for the first widespread consolidation of the regions...
