Source: asiainsurancereview.com

Acccording to the latest sigma report titled “World insurance: the recovery gains pace” by Swiss Re, many respondents to a consumer survey feel under-insured and aim to buy more protection, despite most owning medical and life insurance.

Swiss Re conducted surveys in 12 key Asia Pacific markets in 2020 and 2021 to better understand how the COVID-19 pandemic experience has changed consumer behaviour.

Some 30-40% of the respondents purchased additional life and health insurance during the crisis, and 25%-50% still intend to purchase new policies,.
The intent was higher in emerging Asia (56%), particularly India, Vietnam and China (~70%) versus advanced Asia (average: 20%).

Emerging Asia

In emerging Asia (excluding China), premium growth is expected to grow by 6.7%, propelled by an improved economic outlook, fast roll-out of vaccines, rising risk awareness, adoption of digital distribution channels and further liberalisation of the life sector.

In emerging markets globally (excluding China), Swiss Re expects a mixed recovery with an above-trend annual growth of 5.1% in 2021 and higher growth of 5.5% in 2022.

Swiss Re expects emerging markets to continue to outpace advanced markets and Asia to outperform other regions, with the ongoing shift in economic power from west to east reflected in the source of global premium growth.

Advanced Asia

In advanced Asia Pacific, premiums in the life insurance market shrank by 5%, largely due to another decline of more than 30% in Australia as a result of the sustained drop in consumer confidence after allegations of mis-selling during COVID-19.

In the non-life market, advanced Asia Pacific was the highest-growth advanced region with a 2.6% rise in premiums, led by South Korea with a 6.6% gain. South Korea’s growth is the result of an exceptional motor insurance market in which higher medical costs and car maintenance fees are raising premiums.