The emerging Asian middle class exhibits clear indicators of optimism regardless of financial headwinds. Health, well-being, and monetary wealth are crucial priorities in this client phase, in line with the findings of a client survey launched by Peak Reinsurance Company (Peak Re), a Hong Kong-based international reinsurer.
With growing financial prosperity, these prospects would require extra threat mitigation and safety options, creating significant opportunities for the re/insurance sector, says the survey report that was launched final week on the event of Peak Re’s upcoming tenth anniversary.
In collaboration with Intuit Research, Peak Re commissioned a regional survey in the second quarter of 2022 to determine the distinctive traits of the emerging Asian middle class. Understanding the behaviour and preferences of the emerging Asian middle class is essential to efficiently tapping into this vital insurance market phase. These customers want extra insurance protection as they start to build up wealth and make plans for his or her retirement and their youngsters’s schooling.
Mr Franz Josef Hahn, CEO of Peak Re, stated, “Emerging Asia’s share of world GDP has elevated considerably from 5% in 1990 to an estimated 26% in 2022, in line with the IMF. Despite cyclical financial challenges, emerging Asia is anticipated to stay the fastest-growing area in the world over the subsequent decade.
“With higher income levels and the rise of the middle class, there are significant opportunities for insurers and reinsurers to offer risk mitigation and protection solutions.”
Optimism over monetary well-being and social mobility
According to the survey, the emerging Asian middle class is clearly extra optimistic about its monetary well-being, social mobility and the success of its youngsters, in comparison with its counterparts in mature Asia.
Emerging Asia’s middle class can also be extra health-conscious and inclined to take health-promoting measures, while being conscious of the heavy monetary burden of medical bills.
In phrases of private funds, the survey exhibits middle-class individuals in emerging Asia are additionally extra assured about their monetary literacy and extra disciplined about spending and saving. This optimism is mirrored in the truth that extra of them have ambitions to develop into entrepreneurs or anticipate employers to enhance work-life stability.
Seven emerging Asian markets are included in this survey, specifically Malaysia, Indonesia, Thailand, Vietnam, Philippines, China and India. Three mature Asian markets are additionally included for comparative functions: South Korea, Hong Kong and Japan.
