The global insurance industry is not fulfilling its potential - many companies and individuals are under-insured for key risks. In less developed countries, losses from natural catastrophes can be almost totally uninsured.
Based on a recent survey of the global insurance industry, a study has shown the empirical relationship between disposable income and insurance penetration (insurance premium divided by GDP). A minimum GDP per capita of USD$5,000 appears to be the magic number at which insurance take-up really picks up, as this reflects the growth of an economy's middle class.
If we consider the likelihood of this relationship, then the South East Asia market should be particularly exciting in the coming years. Other than Singapore being the highest GDP per capita in the region, the next most interesting markets would be Malaysia with an estimated GDP per capita of 11,136 USD, Thailand at 7,791 USD and Indonesia at 4,163 USD.
South East Asia is now the fastest growing insurance market in the world. Attributing to increased awareness, a fast growing middle income group, together with advancement in technology and availability of connectivity, we should be seeing a surge in the insurance take up rate in the years to come as insurtechs continue to rise within the region.
With our headquarters in Singapore, we are planning to scale across South East Asia. We therefore welcome you to partner with us and be positioned for the growth of the insurance market here.