Digitalisation and disease-focused plans helped insurers boost value proposition.
Personal accident and health (PA&H) insurance written premiums in Asia Pacific is set to reach $240.1bn in 2023, according to a GlobalData report.
PA&H insurance in the region is projected to grow at a CAGR of 11.1% during 2019–2023, backed by an expanding middle-class population with growing disposable income.
“The disparity in the healthcare delivery standards between developed and emerging markets of the region has accelerated the demand for private insurance during the last five years, with the industry recording a CAGR of 15.5%,” said analyst Manisha Varma, adding that better living standards, medical inflation, expanding private health care and foreign insurers are some factors contributing to the growth.
Moreover, the pandemic triggered a heightened awareness of insurance, particularly in emerging markets as public hospitals struggled with high demand, the report noted. Digitalisation and disease-specific products also helped insurers expand their value proposition.
“PA&H insurance is expected to see major developments as short-term accident covers, critical illness, disease-specific products become more mainstream. Furthermore, technology savvy middle class emerging markets and an aging population in mature markets will support the business growth over the next few years,” Varma concluded.
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