A new report commissioned by Prudential plc indicates that increasing life and health insurance coverage could play a significant role in driving economic growth across key ASEAN markets.
The study, conducted in collaboration with PwC, analysed the impact of insurance on economic and social development in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
The research, titled “Beyond Coverage – The Social and Economic Impact of Insurance in ASEAN,” utilised both qualitative and quantitative methods to evaluate the sector’s influence on long-term growth.
The findings suggest that insurance is not only a mechanism for risk protection but also a contributor to broader economic resilience and development.
Drawing on annual data from 1999 to 2019, the study modelled the effects of increased insurance penetration in the six ASEAN countries.
The analysis projects that a 50% rise in life insurance uptake by 2050 could result in a 5.1% increase in GDP per capita and a 4.4% boost in total GDP.
Similarly, expanding non-life insurance coverage, including health insurance, by 50% is forecast to deliver a 3.1% rise in GDP per capita and a 2.6% increase in total GDP.
These outcomes are linked to enhanced workforce participation and greater financial security.
The report also highlights insurance’s contribution to achieving sustainable development goals, particularly through supporting labour force engagement, capital formation, and the development of human capital.
Neil Moge, group chief investment officer at Prudential plc, said the report’s results highlight insurance’s important role in ASEAN’s economic trajectory.
“By delivering essential risk protection and fostering financial stability, insurers lay the groundwork for communities to flourish,” he said. “Moreover, the industry’s ability to direct long-term capital into critical sectors, such as infrastructure and green energy, fuels economic advancement and social well-being.”
He added that ongoing growth in insurance across ASEAN is creating new opportunities, encouraging inclusive progress, and supporting the region’s advancement.
Steven Chan, group chief government relations and policy officer at Prudential plc, addressed the implications for industry stakeholders.
“The study presents substantial opportunities for policymakers and industry leaders to capture the benefits of insurance. By sharing these findings, our goal is to provide further insights and initial policy recommendations in promoting sustainable and inclusive growth of the insurance industry,” he said.
He added that immediate actions may involve introducing fiscal measures like tax incentives for policyholders and creating regulatory environments that support industry growth.
Over the longer term, efforts should be directed toward developing talent and fostering collaboration between public and private sectors to enhance the insurance landscape and increase public understanding.
The report outlines several policy recommendations, including the introduction of fiscal incentives and the development of regulatory frameworks to support insurance growth.
In addition, it emphasises the importance of talent development and collaboration between the public and private sectors to strengthen the insurance ecosystem and raise public awareness.
Prudential has reiterated its commitment to working with partners across the region to support the development of a robust insurance sector.
The company maintains that expanding insurance coverage is essential for advancing economic development and improving social welfare in ASEAN countries.
