Asia: Morbidity seen as the single most important protection gap
Source: Asia Insurance Review | May 2019
The most frequently mentioned protection gap in emerging Asia relates to morbidity: increasing environmental pollution, changing lifestyles and aging give rise to a rapid growth of cancer, diabetes and cardiovascular diseases, according to a report released by Peak Re.
The reinsurer commissioned the Emerging Asia Life Insurance Pulse 2019, a study based on in-depth interviews with insurance executives operating in the region. Conducted by Dr Schanz, Alms & Company, the report says that executives polled pointed to a lack of awareness as the main reason for this type of underinsurance.
Cultural obstacles are identified as the second most relevant roadblock to insurance buying. Many customers still rely on traditional family ties or government support for protection. Others expect a ‘return’ from insurance and do not believe that ‘peace of mind’ as such is worth a regular premium payment even if claims fall short of it.
Affordability ranks third as major parts of the population still do not enjoy the excess income needed to purchase insurance. This challenge is exacerbated by high costs of distribution. A