How expanding insurance could add over 4% to GDP across ASEAN

These gains are linked to stronger labour force participation and more.

Boosting insurance coverage could add more than 4% to gross domestic product (GDP) across six ASEAN countries by 2050, according to a study commissioned by Prudential plc. 

The report, “Beyond Coverage – The Social and Economic Impact of Insurance in ASEAN”, examined Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

The study, conducted with PwC, found that a 50% rise in life insurance uptake could increase GDP per capita by up to 5.1% and total GDP by 4.4%. 

A similar rise in non-life insurance coverage could lift GDP per capita by 3.1% and total GDP by 2.6%. 

These gains are linked to stronger labour force participation, human capital growth, and financial stability.

Prudential said insurance plays a critical role in advancing sustainable development, supporting infrastructure and green energy investment, and strengthening social resilience. 

“Moreover, the industry’s ability to direct long-term capital into critical sectors, such as infrastructure and green energy, fuels economic advancement and social well-being,” Neil Moge, Group Chief Investment Officer at Prudential plc, said in a press release.

“The continued expansion of insurance throughout ASEAN opens new horizons of opportunity, empowers inclusive development, and enables the entire region to thrive,” added Moge.