With gross domestic product of US$2.6 trillion (Bt92 trillion), Asean will represent a large market for insurance products to a population of 625 million.

According to Milliman, a US-based consulting company, life insurance penetration in Asean markets is still very low in comparsion with more developed economies.

In 2013, Singapore was the most developed country in the Asean bloc and only reached premium revenue of 4.8 per cent of GDP, which was much lower than that of Hong Kong at 12.1 per cent and 8 per cent in Japan.

Most of the Asean countries have a ratio of less than 2 per cent and this will be a great opportunity for life insurers to expand their market share.

Nguyen Viet Loi, director of the Institute of Strategic and Financial Policies at the Finance Ministry, said yesterday that the development of sea transport, road and air routes within Asean will be a prerequisite for the development of new insurance products.