Source: asiainsurancereview.com

The insurance industry has not been spared the devastating impact COVID-19 has had on the global economy. There is, however, a consensus that the pandemic has brought the protection gap in Asia to front-of-mind and raised consumer awareness of the need to be financially protected enough that (re)insurers need to capitalise on this window of opportunity.

Speaking to Asia Insurance Review, Swiss Re managing director, head of life and health globals and South Asia Marianne Gilchrist said that educating consumers about the need for insurance has been helped by the change in consumer sentiment over certain topics in recent years. One example is mortality. Death has always been a sensitive issue in many Asian cultures. Ms Gilchrist pointed out that when she was working in the region in the early 2000s, it was very awkward for insurers and their agents to broach the subject with consumers when trying to talk about life insurance and long-term financial planning. But things have changed over the last two decades, and about two-thirds of consumers are now more willing to talk about mortality, the reality that it happens to everyone and the implications that death will have on those left behind.

At the same, Swiss Re’s research has also shown that consumers have been engaging very actively with their insurers during the COVID-19 crisis. With remote, digital interactions becoming increasingly interwoven into the fabric of society, the last few years have seen consumers come to expect more end-to-end interaction with their insurer, and they want to be able to choose how they interact with their insurer.

“What that means is that they researched insurance generally and they looked at their own insurance specifically, and many of them are able to identify benefits within those insurance policies that they didn’t know were there that they realise brought them value. What’s different now is the value that insurance brings is much more front-of-mind for many consumers,” said Ms Gilchrist. “It’s particularly true for health insurance because that’s foremost in most people’s minds. But what that does now is present the opportunity for insurers really to highlight all forms of insurance, specifically life insurance and the role that it plays in securing financial futures.”

Swiss Re’s COVID-19 consumer survey found that, especially in the early stages of the crisis, consumers that were contacted by their insurer had a heightened awareness of what insurance brought, and they were also significantly more likely to purchase additional insurance. Almost half (46%) of the consumers surveyed had been contacted by their insurers and a third of them have bought additional insurance. “There is a change in the landscape, and this is a great opportunity for us to leverage it and really build on the opportunity to educate consumers more about the strong role that insurance can play in securing their financial future – not just for the immediate short-term need but also in the medium- and long-term, and not just for the individuals but for the whole family,” she said.