Prudential: Insurance Coverage Could Boost ASEAN Growth
Increased insurance coverage in Southeast Asian nations could significantly boost economic growth, according to a study by Prudential.
Expanding life insurance coverage by 50 percent could lead to a 5.1 percent rise in GDP per capita and 4.4 percent growth in the total GDP in six ASEAN countries – Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam – according to a study by Prudential in partnership with PwC.
And 50 percent growth in non-life insurance coverage is projected to result in a 3.1 percent increase in GDP per capita and a 2.6 percent increase in the total GDP in the six countries.
Inclusive Development
According to the study, the economic gains are driven by a robust workforce and greater financial confidence with insurance coverage contributing to labour force participation, capital deepening and human capital development.
«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,» said Neil Moge, group chief investment officer at Prudential.
The study is based on a blend of qualitative analysis and quantitative econometric regression using annual data from 1999 to 2019 for the six countries.
