The insurance environment in Asia seems to be one of optimism, despite all the recent events that have hit the region and the still worrisome protection gap. Over the past month, the region saw a volcano erupting, constant flooding and rainfall in India and Indonesia and the world’s worst airplane crash in a decade.
However, insurers here still view the region as one that is full of promise and growth, with the main challenge being unlocking that potential. After all, these events are the ones that people need insuring from.
Asia sits at the intersection of risk and opportunity. It is home to many of the world’s fastest-growing economies, a rapidly expanding middle class and a digital-savvy population. At the same time, it is one of the most disaster-prone regions globally and poor infrastructure planning and rapid urbanisation in many of Asia’s cities have created higher risk profiles.
The increasing frequency of extreme weather events and large-scale disasters serves as a reminder that underinsurance is not just a social issue – it is a market failure. Many individuals, small businesses and even governments across Asia still lack adequate coverage for life, health and property risks. This creates vast uninsured losses and slows recovery. But it also highlights the opportunity for insurers to innovate, build trust and offer accessible and relevant products.
In a region facing acute environmental risks and wide socio-economic disparities, integrating ESG into insurance practices is not just about global compliance – it is a business imperative and an engine for growth.
Insurers operating in Asia are increasingly recognising the role they can play in driving sustainable development. By incorporating ESG into underwriting, investment decisions and customer engagement strategies, they can support climate resilience, financial inclusion and improved governance.
For example, flood-prone regions like Jakarta and Mumbai can benefit from climate-resilient insurance products tied to weather data or early warning systems. Microinsurance and mobile-based distribution can help low-income populations in rural areas access protection for health, agriculture and property. These initiatives align not only with ESG values but also with business goals – expanding market reach and reducing long-term exposure to unmitigated risks.
Asian regulators are also beginning to align with global trends. Countries such as Singapore, Hong Kong and Japan are developing sustainability disclosure frameworks and encouraging insurers to adopt climate risk assessment models. Elsewhere, governments are partnering with insurers to support disaster risk financing and public-private protection schemes.
At the same time, consumer awareness around ESG issues is rising. Younger policyholders and corporate clients are increasingly conscious of how their insurance providers contribute to broader sustainability goals. Insurers that demonstrate leadership in ESG are more likely to earn customer trust and loyalty in this evolving landscape.
Despite the uncertainty of the present, the long-term fundamentals of Asia’s insurance sector remain strong. But to unlock the region’s full potential, insurers must go beyond traditional risk pooling and take a proactive role in shaping resilient and sustainable societies.
ESG offers a framework and a pathway for doing just that. It allows insurers to not only protect lives and assets but also to create value for communities, economies and the planet. In doing so, they ensure that optimism about Asia’s future is not misplaced, but rather, built on a foundation of responsibility, foresight and inclusive growth. A
Ahmad Zaki
Editorial director
Asia Insurance Review