Insuring the next billion consumers

Microinsurance represents a huge opportunity for insurers in south east Asia. But innovative strategies are required to access this new source of growth and profitability successfully

Stephane Chatonsky, partner

Penetration of insurance in south-east Asia is low, particularly among the emerging economies of Indonesia (1.7%) and the Philippines (1.3%). This is hardly surprising, since within those countries the insurance industry has primarily focused on the wealthiest. Yet in these markets, the upper and middle classes typically constitute less than 20% of the population, leaving the other 80% unreached. What if insurers could begin to reach those billions of under-served consumers?