Greater than 1 / 4 of respondents in Asia Pacific (APAC) stay involved about how they’ll get well financially from the COVID-19 pandemic, whereas the subject of psychological well being rises to the highest of shoppers’ well being issues, as proven in Swiss Re’s 2021 APAC COVID-19 shopper survey.
Different findings embody:
1 in 4 respondents rank psychological wellbeing as their prime well being concern right this moment, with an elevated give attention to managing bodily well being.
1 in 2 respondents are occupied with buying by way of insurers’ on-line web sites and apps sooner or later. Previously six months, 39% of complete transactions accomplished have been by way of insurers’ on-line web site and apps.
Clients have turn out to be extra value delicate, with 80% of respondents indicating value as an important choice think about buying an insurance coverage coverage.
The worldwide reinsurance big Re commissioned two annual shopper surveys throughout markets in APAC, the primary in April 2020 and a second in January to February 2021, to assist insurers higher perceive shopper sentiment within the area. The outcomes present invaluable insights into how COVID-19 has affected shopper behaviour, implications for the insurance coverage trade, and the way insurers can higher reply to evolving wants.
This 12 months’s survey covers 7,000 respondents throughout 12 markets, and consists of Australia, New Zealand, mainland China, Hong Kong, India, Indonesia, Japan, Singapore, Thailand, Malaysia, Vietnam and South Korea.
Well being issues drive medical insurance coverage premium progress
Mr Russell Higginbotham, CEO Reinsurance, Swiss Re Asia, stated, “COVID-19 has uncovered shortfalls in shoppers’ insurance coverage safety, the place growing well being issues have translated into sturdy medical insurance premium progress in a number of markets akin to Thailand, Singapore and China.”
Because the Swiss Re Institute report highlights, a direct space of concern has been well being and monetary stress introduced on because of the worldwide financial downturn from the pandemic. The COVID-19 expertise has additionally prompted shoppers in APAC to rethink their insurance coverage wants.
“The rising consciousness of well being and mortality dangers are key components that drive sturdy progress in danger and medical insurance premium, even in the course of the COVID-19-triggered financial recessions,” stated Ms Irina Fan, head of Insurance coverage Market Evaluation on the Swiss Re Institute. “For example, in 2020, medical insurance premium maintained double-digit progress of 10.5% in APAC, in distinction with earlier the worldwide monetary disaster, when health-related premium progress slowed down sharply.”
Medical insurance stays prime of thoughts for shoppers, with medical reimbursement and important sickness rating as areas that customers are eager to hunt extra safety sooner or later.
Worth and protection
The stress of the pandemic has additionally made insurance coverage prospects extra value delicate. Throughout all of the markets, 80% of respondents stated that value is an important think about insurance coverage buy choices (up 5% from 2020). COVID-19 has additionally prompted larger consideration to coverage protection. When requested, 33% of respondents within the area rated breadth of canopy as an important insurance coverage factor – that is of specific significance to patrons in mainland China, Hong Kong and Malaysia.
Digital entry and well being administration
As well as, prospects now see digital entry to course of transactions and velocity of declare processing/fee as normal providing when on the lookout for insurance policies.
Swiss Re’s survey additionally highlights how the pandemic has promoted extra proactive administration of non-public well being and elevated emphasis on psychological wellness. Throughout the area, 71% of respondents indicated they’re practising stricter private hygiene habits, 50% implementing more healthy diets, 48% getting extra train and 40% practising higher sleeping habits.
Mr Michael Rolf, head of Options Teams Life & Well being Asia, at Swiss Re, stated, “Psychological wellbeing, sleep, train and diet have been all highlighted within the survey. These are just a few of the approach to life components we check with as ‘The Massive Six’ as a result of they current many alternatives for our trade – various information use, higher buyer journey and engagement, a capability to enhance buyer well being, and the opportunity of underwriting in a wholly new manner.”
The elevated use of well being apps is an space the place insurers can play a extra vital function in participating shoppers. For the reason that begin of the COVID-19 outbreak, there was considerably increased acceptance of digital interactions with insurers and extra frequent digital touchpoints for well being administration and insurance coverage purchases, particularly in rising Asia. The survey exhibits up to now six months, 39% of the whole insurance coverage coverage purchases have been accomplished utilizing insurers’ on-line platforms or through an app. Going ahead, Swiss Re expects digital insurance coverage purchases to proceed to see an uptick in APAC, with 50% of respondents occupied with buying by way of an insurer’s web site or app sooner or later.
As such, the insurance coverage trade might want to proceed to use digitalisation all through the insurance coverage worth chain to stay related and linked to prospects.
This 12 months’s survey additionally confirmed that many individuals are eager to return to some semblance of regular social life, though one-third of respondents are nonetheless eager to keep up social distancing and keep away from massive gatherings akin to live shows and festivals because of the uncertainty round COVID-19. With social behaviours evolving, there are alternatives for insurance coverage firms to tailor new and extra versatile options to fulfill evolving shopper wants – for instance, safety for shoppers’ growing on-line transactions.
Heightened danger issues round psychological wellbeing and rising curiosity in non-traditional distribution channels have additionally given rise to extra revolutionary product choices throughout the APAC area.