With a population of just under 650 million, ASEAN is characterised by its rising and expanding middle class. This segment will represent two-thirds of its overall population by 2030. Increasing urbanisation, rising consumption levels and a young workforce are expected to drive future growth. This forms the backdrop that will boost intra-ASEAN trade and investment. Consequently, this will further propel the region’s journey to become a highly integrated and cohesive economy as envisaged in the ASEAN Economic Community Blueprint. Current state of the ASEAN insurance industry Now, how has the ASEAN insurance industry fared during this period and how will it perform going forward and how do we want it to perform? Ten years ago, the ASEAN insurance sector recorded a total premium income of USD41 billion, with total assets of USD185 billion. In 2017, the region recorded a total premium income of USD103 billion, with total assets of USD480 billion. Nevertheless, the ASEAN insurance industry remains small. According to Swiss Re, the combined premium volume of the ASEAN insurance market accounted for only 2.1% of the world’s market share in 2017. In comparison, the insurance industries in China and Japan each accounted for 11.1% and 8.6% of the world’s market share, respectively. Insurance penetration in the ASEAN region remains low, averaging 3.6% in 2017. This is considerably well below the global average of 6.1% and the greater Asian region’s average of 5.6%.
The two cities are situated in different regions and their real economies have different clientele. With capital account controls still in place on the Mainland, the further opening up of Shanghai, such as the development of its Free Trade Zone, will lead to closer and more extensive business, trade and financial links between the two cities, meaning more business opportunities. In 2000, there were 23 flights a day between Hong Kong and Shanghai. In 2013, this had increased to 75, clearly demonstrating that the continuous growth of Shanghai will result in more business exchanges with Hong Kong and creating a win-win situation. 9. Indeed, the launch of the Shanghai-Hong Kong Stock Connect on November 17 resonates with my assertions here in several ways. Last week, Vice-Premier Ma Kai told the visiting delegation of the Hong Kong Association of Banks that the scheme was not only a 2  BIS central bankers’ speeches  milestone for financial co-operation between Hong Kong and Shanghai, but also a strategic move towards the Mainland’s capital account convertibility and the opening up of its capital market. Furthermore, the Shanghai-Hong Kong Stock Connect adds another important channel for the circulation of renminbi between onshore and offshore markets. It is also a strong vote of confidence in Hong Kong’s development as an international financial centre, reaffirming our unique role as the offshore testing ground for the Mainland’s financial liberalisation. Zero-sum vs positive-sum 10.