Swiss Re reports Asia’s protection gaps hit $390b in 2024

China leads with a $143b health protection gap.

Swiss Re reports that Asia’s health and mortality protection gaps have grown to a combined $390b in 2024, highlighting underinsurance across the region. 

The health protection gap (HPG) rose 21% from 2017 to $258b, mainly due to rising medical costs and ageing populations. 

China leads with a $143b HPG, followed by India ($32b) and Japan ($24b).

The mortality protection gap (MPG) reached $132b, up 35% from 2017, with over 80% of the gap coming from emerging markets where insurance coverage hasn’t kept pace with income growth.

A Swiss Re survey of over 12,000 consumers in 12 markets found strong demand for life and health insurance, especially in emerging Asia. 

Financial stress from out-of-pocket healthcare spending has increased in most markets, driven by chronic and critical illness treatment costs.

Barriers to insurance uptake include pricing concerns, limited understanding, and economic uncertainty. 

Swiss Re recommends bundled life and health products and value-added services like preventive care to help close the gap.