Expanding insurance coverage in six ASEAN countries could boost economic growth by more than 4% in key markets between 2023 and 2050, according to a new study commissioned by Prudential plc. The report, titled “Beyond Coverage: The Social and Economic Impact of Insurance in ASEAN”, underscores the critical role insurance plays not just as a safety net, but as a powerful driver of inclusive development and resilience.
The study, conducted in partnership with PwC, uses both qualitative analysis and quantitative econometric regression to assess the social and economic impact of insurance in six ASEAN countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. The findings emphasize the pivotal role of life and non-life insurance, including health insurance, in driving the region’s Sustainable Development Goals (SDGs) and supporting long-term economic growth factors such as labor force participation, capital deepening, and human capital development.
Insurance’s Impact on Economic Growth
The quantitative modelling, based on annual data from 1999 to 2019, reveals that a 50% increase in life insurance coverage by 2050 could result in a 5.1% increase in GDP per capita and a 4.4% increase in total GDP across the six countries. Similarly, a 50% increase in non-life insurance coverage is projected to yield a 3.1% rise in GDP per capita and a 2.6% increase in total GDP. These economic gains are linked to a more resilient workforce and greater financial security for individuals and businesses.
Insurance as a Catalyst for Sustainable Growth
Neil Moge, Group Chief Investment Officer at Prudential, commented: “Insurance is a key catalyst for sustainable growth in ASEAN, supporting the region’s path toward resilience and prosperity. By providing essential risk protection and fostering financial stability, insurers lay the foundation for communities to thrive. Moreover, the ability of the insurance industry to channel long-term capital into critical sectors, such as infrastructure and green energy, accelerates both economic development and social well-being.”
Policy Implications for Growth
Steven Chan, Group Chief Government Relations and Policy Officer at Prudential, added: “This study presents substantial opportunities for policymakers and industry leaders to harness the benefits of insurance. Expanding coverage not only strengthens financial resilience but also propels broader economic progress. The continued growth of insurance throughout ASEAN will unlock new avenues of opportunity, enabling the region to prosper in an inclusive and sustainable manner.”
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