• A Peak Re survey of 7,000 women in six key emering Asian countries found independent women are willing to spend more on insurance, with working mothers and women entrepreneurs spending over 10% of their income on insurance.

• Family ties play a crucial role in financial planning for the segment, highlighting the need for insurance products that align with familial values.

• There’s high interest in old age risk reduction programs, including wellness programs, telemedicine, and home safety assessments, presenting opportunities for insurers to innovate.

Emerging Asia’s middle class women are willing to spend more on insurance than they currently do, according to a Peak Re consumer survey of 7,000 respondents across China, India, Indonesia, the Philippines, Malaysia and Vietnam.

The survey found that women respondents across various segments said they were more willing to spend more on insurance, with 42% of independent women — defined as single women who are working — indicating that they are more likely to spend more than 10% of their household income on insurance.

Working mothers and women entrepreneurs are the biggest spenders on insurance, with 48% saying that they spent more than 10% of their income in insurance. Working mothers are also more likely to stay with the same insurer, Peak Re found.

Three quarters of women who responded said they were working mothers, which Indonesia ranking highest at 91%, the survey found. A total of 21% of women contributed to more than 50% of the family income in the six countries surveyed.

Women, across various categories, exhibit a similar pattern in insurance ownership, the Peak Re report found, with many prioritising term life and health insurance like their male peers.

Middle-class Asians feel they are responsible for old age care
The survey also found that multi-generational households are now a defining characteristic of the Asian middle class, with 41% of all households surveyed having live-in parents across the six countries. Despite that, less than half — 46% of respondents said that they have life insurance policies to cover for old age care, with 61% saying that they rely on savings and 37% relying on family support.

The pivotal influence of family ties is a key point insurers should note, said Peak Re CEO Franz-Josef Hahn. “This underscores the need for insurers to develop products that not only provide financial security but also resonate with the familial values and priorities of this demographic,” he said.

Trust in government support for old age is low across the six countries, with most respondents believing that it is their own responsibility to take care of their parents when they get old, the survey found.

Being self-reliant on savings, insurance and family support is seen as the primary strategy of funding for elderly care.

But not many rely on insurance for such care, with many choosing to rely on savings and investments, the study found. Only 28% of respondents chose insurance as a main source of financing for care in their old age, with Indonesia showing the highest reliance on insurance at 37%, followed closely by China at 32%.

Even then, most respondents have researched for old age care options, with 28% having spoken to an insurance agent. Only 24% did not take an active step to look into caring for themselves at an old age, the survey found.

There is also significant interest for old age risk reduction programmes, with 42% of respondents across all six countries expressing interest in wellness programs to reduce chronic or acute disease risks. One-third of all respondents were interested in telemedicine services, and another third said they were interested in fall prevention and home safety assessments.

“As the population ages, the demand for old age care is becoming increasingly pronounced,” Hahn said. “This presents a significant opportunity for insurers to innovate and address the evolving needs of an ageing middle class.”

The article was first published on (Re) in Asia on 14 October, 2024. Please refer to the full article here.