A new report from Peak Re claims that the emerging Asian middle class shows clear signs of optimism despite economic headwinds with future economic prosperity increasing the demand for more risk mitigation and protection solutions that will create ‘significant opportunities’ for the re/insurance sector.
According to the survey, the emerging Asian middle class is clearly more optimistic about its financial well-being, social mobility and the success of its children, compared to its counterparts in mature Asia.
Emerging Asia’s middle class is more health-conscious and inclined to take health-promoting measures, whilst being aware of the heavy financial burden of medical expenses.
In terms of personal finances, based on the survey, the middle class people in emerging Asia are also more confident about their financial literacy and more disciplined about spending and saving.
This optimism is reflected in the fact that more of them have ambitions to become entrepreneurs or expect employers to improve work-life balance.
Franz Josef Hahn, CEO of Peak Re, said: “Emerging Asia’s share of world GDP has increased significantly from 5% in 1990 to an estimated 26% in 2022, according to the IMF2. Despite cyclical economic challenges, emerging Asia is expected to remain the fastest-growing region in the world over the next 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. Since 2012, Peak Re’s mandate to support the emerging Asian middle class makes it well-positioned to benefit from this tremendous growth.”
He added: “The results of Peak Re’s large-scale consumer survey on the emerging Asian middle class will contribute to a better understanding of the needs and preferences of this important customer segment and stimulate the dialogue between Peak Re and its customers and partners to better serve these consumers.”
The report was done online between 28 March and 22 April this year, and spoke to roughly 6,500 respondents from Malaysia, Indonesia, Thailand, Vietnam, the Philippines, China, India, Hong Kong, Japan, and Korea.