The private health insurance market in ASEAN is expected to continue to grow, driven by a combination of rising healthcare awareness, government initiatives and technological advances, according to the 2024 edition of the "ASEAN Insurance Pulse".
The publication was released by Malaysian Re at the 14th ASEAN Insurance Congress held in Brunei on 25 November. This year’s publication addresses the pressing topic of healthcare financing in ASEAN.
The Pulse says that governments in countries such as Thailand and Indonesia are pushing for universal healthcare coverage, which could further improve access to insurance products. Meanwhile, the integration of digital tools and data analytics is likely to continue to transform the way that insurers manage risk, serve customers and handle claims.
In fast-growing ASEAN countries such as Indonesia, Malaysia, the Philippines, Thailand and Vietnam, with a combined population of nearly 600m but still low insurance penetration, a significant demographic shift is taking place.
Customer base
Rising incomes and higher levels of education are creating a more sophisticated customer base—people who recognise the importance of financial planning and insurance. As people live longer, a new group of older consumers is emerging, demanding specialised insurance products.
In more developed markets such as Singapore, there is a shift towards innovative healthcare strategies, including wellness programmes and preventive care, as well as support for home care for the elderly.
In addition, insurers are increasingly offering microinsurance and digital health products for low-income populations, particularly in emerging market countries such as Indonesia and the Philippines. This allows individuals to purchase basic health coverage at a lower cost.
At the same time, there is a growing demand for comprehensive coverage that includes critical illness, long-term care and lifestyle-related conditions such as diabetes and heart disease, particularly in more developed markets such as Singapore and Malaysia.
To seize the health insurance market opportunity, insurers are already shifting from selling and servicing traditional products to focusing on customers and the health outcomes that they increasingly demand. This means using new technologies and data to work hand-in-hand with customers to deliver preventative care, early intervention and personalised services to improve customer engagement.
The findings of the report are based on 16 structured interviews with executives representing regional and international re/insurance companies, intermediaries, policymakers and trade associations. The interviews were conducted in August and September 2024 by Faber Consulting, a Zurich-based research, communication and business development consultancy.