Low digital property and casualty (P&C) personal lines market penetration, estimated at 1-2 percent, in the region shows strong growth potential, the reinsurance giant said.
The digital P&C personal lines market could reach a cumulative $7.5 billion in premiums over the next five years in South and Southeast Asia, highlighting a unique opportunity for insurers, according to Swiss Re.
According to the report, 40 percent of consumers across six markets in the region would prefer to buy personal lines insurance online, with India topping the list of markets ready to embrace digitalisation, and consumers in Singapore being the least receptive, at 34 percent.
«To encourage consumers to make the switch to digital channels when purchasing P&C cover, the industry must first focus on developing simple, modular products and streamlining digital onboarding processes to strengthen consumer trust and confidence,» Victor Kuk, head P&C reinsurance SID, Swiss Re, said.
«Unique Opportunity»
The report, which sought the views of 5,600 consumers in India, Singapore, Malaysia, Indonesia, Thailand and Vietnam, cited the growing number of digital consumers as a result of the COVID-19 pandemic and a «unique opportunity» for insurers, and that understanding consumer preferences will be key to help P&C insurers expand their reach through digital distribution channels.
Emerging risk pools identified by Swiss Re include online shopping and cyber risks, as well as gadget insurance.
«Social behaviours are evolving and as a result we see opportunities to tailor new and more flexible solutions to meet evolving needs – for example additional protection for consumers' increasingly online transactions,» Grace Li, Swiss Re team lead for innovation, said.
