Asia faces a profound underinsurance crisis. A recent survey by the Global Asia Insurance Partnership across 12 Asian markets reveals a stark reality: the health protection gap has surged by 21% since 2017, now standing at $258 billion, while the mortality protection gap has climbed even faster, by 35%, to $132 billion. Combined, this amounts to a $390 billion shortfall, excluding other critical areas such as longevity and retirement planning, property and casualty coverage, cyber risk, and natural disaster protection. The total protection gap across the region is therefore far larger.
Behind these figures lies a deeply human story. Tens of millions of people remain financially vulnerable, unable to withstand life’s sudden shocks. This vulnerability was painfully exposed during the recent Southeast Asian floods, which followed the heaviest rainfall in 300 years, underscoring one of the most pressing protection gaps in the region.
Insurance exists to safeguard communities, providing security for people and businesses during the most challenging times. Yet too many remain without adequate coverage—a lose-lose scenario for society and the sector alike.
Three principal factors drive these protection gaps. First, affordability: 40% of respondents in advanced markets and 36% in emerging markets, including China and India, cited high cost as a barrier. Second, familiarity: 35% of respondents in emerging markets and 26% in advanced markets admitted they did not purchase insurance because they were unaware of it or did not understand its benefits. Many also assume family support will suffice for long-term care, disability, or critical illness protection. Third, trust—or rather, the lack of it. OECD research in Indonesia, Malaysia, Pakistan, the Philippines, and Sri Lanka found widespread scepticism that insurers would provide fair, reliable protection. Consequently, many households choose to self-insure, retaining risk themselves.
To close these gaps, insurers must innovate: offering clear, personalised value propositions, flexible modular products, trustworthy relationships, and cost-efficient solutions. Technological advances, particularly in artificial intelligence and generative AI, are enabling this transformation. AI can personalise coverage, expand risk pools, enhance distribution, and drive operational efficiency, potentially reducing administrative expenses by up to 40%.
Yet technology alone is insufficient. Customers value human connection, particularly for critical life moments, complemented by digital engagement in between. Insurance must prioritise empathy, transparency, and clarity, with plain-language policies and swift, fair claims processing.
By leveraging innovation while keeping the customer at the heart of their purpose, Asia’s insurers can not only bridge protection gaps but also achieve sustainable, profitable growth—delivering security when it matters most.