In partnership with PwC, the study evaluates the social and economic impact of insurance in six ASEAN countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. A 50 per cent growth in non-life insurance coverage is projected to yield up to 3.1 per cent increase in GDP per capita and a 2.6 per cent increase in the total GDP in the six countries
HONG KONG SAR: Expanding insurance coverage could increase economic growth across six ASEAN countries, adding over 4 per cent to GDP in key markets between 2023 and 2050, according to a study titled “Beyond Coverage – The Social and Economic Impact of Insurance in ASEAN”, commissioned by Prudential plc (Prudential).
This report highlights how insurance is not just a safety net, but a powerful driver of inclusive development and resilience.
The study, through a blend of qualitative analysis and quantitative econometric regression in partnership with PwC, evaluates the social and economic impact of insurance in six ASEAN countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
It highlights the crucial role of life insurance and non-life insurance (inclusive of health insurance) in advancing the Sustainable Development Goals and contributing to key factors of long-term economic growth, including labour force participation, capital deepening, and human capital development.
Using annual data from 1999 to 2019 for the six countries, quantitative modelling reveals that a 50 per cent increase in life insurance uptake by 2050 could see up to 5.1 per cent rise in GDP per capita and a 4.4 per cent growth in the total GDP in these countries.
Similarly, a 50 per cent growth in non-life insurance coverage is projected to yield up to 3.1 per cent increase in GDP per capita and a 2.6 per cent increase in the total GDP in the six countries. These gains can be attributed to a more robust workforce and greater financial confidence.
Neil Moge, Group Chief Investment Officer at Prudential plc, said: “Insurance is a powerful catalyst for sustainable growth across ASEAN, underpinning the region’s journey toward resilience and prosperity. By delivering essential risk protection and fostering financial stability, insurers lay the groundwork for communities to flourish.
“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. The continued expansion of insurance throughout ASEAN opens new horizons of opportunity, empowers inclusive development, and enables the entire region to thrive.”
Steven Chan, Group Chief Government Relations and Policy Officer at Prudential plc, said: “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. In the short term, priorities include implementing fiscal incentives such as tax deductions for insurance premiums and establishing supportive regulatory frameworks to capture the benefits of insurance. Long-term strategies focus on talent development and public-private partnerships to improve the insurance ecosystem and public awareness,” he said.
Prudential is committed to continuing its work alongside other stakeholders in ASEAN to harness the power of a robust insurance sector, which is essential for fostering economic development and enhancing social welfare.