Optimism of emerging Asia’s growing middle class creates significant opportunities for the re/insurance market

Hong Kong, 21 October 2022 – Peak Reinsurance Company Limited (“Peak Re” or the “Company”), the Hong Kong-based global reinsurer, released a consumer survey on the emerging Asian^[1] middle class on the occasion of its upcoming 10th anniversary. According to the survey, the emerging Asian middle class shows clear signs of optimism despite economic headwinds. Health, well-being, and financial wealth are the most important priorities in this consumer segment. With growing economic prosperity, these customers will require more risk mitigation and protection solutions, creating significant opportunities for the re/insurance sector.

In collaboration with Intuit Research, Peak Re commissioned a regional survey in the second quarter of 2022 to identify the unique characteristics of the emerging Asian middle class. Understanding the behaviour and preferences of the emerging Asian middle class is critical to successfully tapping into this important insurance market segment. These consumers need more insurance coverage as they begin to accumulate wealth and make plans for their retirement and their children’s education.

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 IMF^[2]. 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.”

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.

Mr. Hahn 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.”

 For the survey mentioned in this News Release, please refer to: “Emerging Asia’s Rising Middle Class” (the “Report”) available at https://www.peak-re.com/knowledge-centre/middle-class-survey-2/ or scan the following QR code. The section “Disclaimer” in the Report shall apply to this News Release.

[1] Emerging Asia corresponds to “Emerging and Developing Asia” as defined by the IMF. Seven emerging Asian markets are included in this survey, namely Malaysia, Indonesia, Thailand, Vietnam, Philippines, China and India. Three mature Asian markets are also included for comparative purposes: South Korea, Hong Kong and Japan.

[2] Source: IMF World Economic Outlook Database, April 2022.