APAC consumers’ embrace of digitalisation points the way to a better protected future

We’re all keenly aware of the economic and health challenges exposed and exacerbated by the pandemic. That’s why I feel it’s even more important to highlight the positive takeaways from our third annual survey tracking consumer sentiment about health and protection in the wake of COVID-19.

Our research shows that across Asia Pacific (APAC), the pandemic has accelerated two welcome trends: digitalisation and innovation. This momentum promises to benefit consumers, re/insurers and entire societies.

Those of us who live here have always known that APAC, and particularly Asia’s emerging markets, are in many respects digitalisation trailblazers. Organisations like McKinsey have noted how Asian economies’ rapid technological development and abundance of early adopters have positioned the region to ‘leapfrog’ others in fields like digital health, an industry tipped to more than double to USD 100 billion by 2025.¹

Our survey shows the extent to which consumers are leading this charge. Findings indicate a steady rise in the proportion of APAC consumers turning to digital health management touchpoints such as health and wellness apps, or online portals to research or manage insurance policies. A substantial majority – 62% of respondents in advanced Asia markets and 88% in emerging Asia markets – report utilising at least one such touchpoint since the pandemic began. In markets like Australia and New Zealand, the popularity of telehealth is rising, whereas insurer apps are among the faster-growing channels in emerging Asia.

Utilisation of various digital health management touchpoints since the pandemic

APAC consumers aren’t just more inclined to seek health information or treatment digitally; they’re also turning to digital channels to invest in health and protection. Around half (46%) of regional consumers expressed openness to purchasing coverage from insurers’ apps and websites, while the percentage willing to buy insurance from non-traditional digital channels like e-wallets or online shopping platforms jumped from 18% last year to 25% in 2022.

Consumers in emerging Asia are also among the world’s most willing to share their personal data with insurers, with well over half (58%) of those in Vietnam and 48% in India open to doing so even without explicit incentives. In wealthier markets where there is more reluctance, benefits can decisively tip the balance. While just 16% of consumers in Singapore and Japan are willing to share data unconditionally, that rises to 81% and 67%, respectively, if doing so results in rewards, discounts or streamlined applications.

Respondents willing to share personal data with insurance providers

So, what do these trends, and changing consumer views, mean for re/insurers? First, as my colleague Paul Murray so aptly noted, they show consumers are placing a greater priority on health, including mental health, and increasingly looking to engage and transact with healthcare providers and insurers via digital channels.

We can help address APAC’s still substantial protection shortfalls – we estimated the region’s mortality protection gap at over USD 80 trillion in 2019 alone – by catering to these demands. That means investing in the digital touchpoints we offer consumers to make them as accessible, informative, and seamless as possible, to drive further engagement and adoption.

Reaching more consumers digitally creates the opportunity to amass and analyse more comprehensive and granular data, as does the rising use of health apps, wearables and electronic health records. With efforts to cultivate data from non-traditional sources – such as our initiative to factor lifestyle data into the underwriting process – this is creating a repository of information and insights that’s virtually unprecedented in depth and scope. This has huge potential to improve how re/insurers measure and understand risk, enhance efficiency and our ability to make decisions, and underpin the development of more personalised, accessible and affordable products and services.

While I’m excited by the possibilities that data and digitalisation bring, we also need to act with sensitivity and caution. It’s clear from our survey that many consumers, particularly in higher-income countries with more stringent data protection regulations, remain deeply concerned about data security, or about data boxing them into risk categories that make it difficult to get insurance later. What’s more, despite the inroads made by digital channels, most consumers continue to purchase insurance through agents or brokers, or consult with them beforehand.

Reasons for not sharing personal data cited by APAC consumers

I don’t think I’m alone in concluding that the best approach for our industry is a balance of digital and human channels. When we digitalise, we should do so sensitively and tactically, in a way that’s directly connected to consumer needs. For example, the survey pointed to a clear desire for online assessment and access to information on mental health, and for apps to do a better job of helping consumers understand their health status.

I’m confident that if we respond to these kinds of demands and adopt technology with the end-customer firmly in mind, we’ll make a meaningful contribution to the resilience of our region post-pandemic – and that there will much more dynamism to celebrate in APAC in the months and years ahead.