South Asia digital personal P&C premiums to hit $7.5b in five years
Digital personal P&C insurance penetration rate in the region is at 1%-2%.
The digital property & casualty personal insurance market is expected to reach a cumulative $7.5b in premiums over the next five years across South and Southeast Asia, according to a market research by Swiss Re.
Swiss Re surveyed 5,600 consumers in six countries from India, Singapore, Malaysia, Indonesia, Thailand and Vietnam to determine their attitudes towards purchasing P&C insurance online.
The report revealed that two in five consumers in the region are willing to buy insurance online, with India the most ready market to purchase insurance digitally. They are followed by Thailand and Indonesia, with Singapore as the least ready market for online insurance.
Travel insurance was the most preferred product for online insurance purchases.
The survey also pinpointed consumer’s main concern when buying online insurance products. 40% of respondents said that the lack of any human contact to help explain products or highlight hidden terms would deter them from switching to online platforms.
Respondents in Indonesia (47%) and Thailand (43%) said that the lack of an agent to help with the claims process would dissuade them from switching to a digital channel.
"The first step for insurers looking to extend their digital reach is to foster greater trust and familiarity with digital insurance offerings among customers. Insurance is about trust, and digital insurance is no different. To encourage consumers to make the switch to digital channels when purchasing P&C cover, the industry must first focus on developing simple, modular products and streamlining digital onboarding processes to strengthen consumer trust and confidence,” Victor Kuk, head of P&C reinsurance SID at Swiss Re said.