Bangkok--23 Sep--Aziam Burson-Marsteller
ING Insurance Dashboard Shows Asia’s Middle Income Earners
See Greater Need For Protection In Uncertain Times
Majority Intend to Purchase Insurance to Protect Lifestyle
Eighty-Two percent (82%) of middle-income earners in Asia feel a greater need to protect their lifestyle this year, according to data in a new Insurance Dashboard conducted by ING Insurance in Asian markets. One out of every two respondents (52%) also indicated their intention to buy an additional insurance policy in the next 12 months.
“This is in line with our experience,” said Mr. Frank Koster, CEO of ING Insurance Asia Pacific. “Asia’s growing middle class is looking for more protection to ensure they can maintain their lifestyles in the face of uncertainty and an increased awareness of the benefits of insurance.”
The ING Investor Dashboard1 conducted by ING Investment Management at the same time as the ING Insurance Dashboard, indicated that uncertain economic and income conditions (in India, Malaysia, Thailand and Japan), and political changes (in Thailand and Japan) were the key factors driving this desire to insure against any potential downturn.
Mr. Koster said: “At the same time, unexpected medical expenses and rising medical costs (in China, Hong Kong, Malaysia and Thailand) coupled with changes in family circumstances (in China, India, Korea and Malaysia) were also key motivators to consider increased insurance coverage.”
“With rising disposable income, better health, education and housing conditions, more and more individuals have lifestyles that they want to protect,” he said.
“Insurance policies with savings plans attached are proving to be the product that meets this demand. These policies are proving to be an accessible and affordable wealth management and protection product, for Asia’s growing number of middle income earners,” Mr. Koster said.
Mr. Ignacio Aguilar, CEO ING Life Insurance Thailand added, “In Thailand a significant portion of total policyholders are located in Bangkok and four other urban centers. We see significant growth potential in the broader Thai market as middle class consumers from smaller cities and towns begin seek ways to protect their quality of life.”
The top three reasons for saving which were relatively consistent across the Asian markets surveyed were to protect family income and provide for retirement and education. However, in Hong Kong and Thailand, purchasing a home and starting a business were also indicated as one of the top three reasons respectively.
According to the latest Swiss Re2 report, life insurance premium volume increased by 13% in Asia3 compared to an increase of 6% in the world during 2010.
“This indicates two things,” Mr. Koster said. “Firstly, more and more Asian families consider that they have achieved something that is worth protecting, and secondly, that more Asian families have incomes that are sufficient to afford this type of wealth management product,” he said.
“People in Asia are obviously interested in looking after themselves and the lifestyle that they lead, and importantly, the opportunities they can create for themselves tomorrow,” Mr. Koster said.
The ING Insurance Dashboard tracks the insurance purchasing behavior of middle income earners across the seven markets of China, Hong Kong, India, Korea, Malaysia, Thailand and Japan. It was conducted at the same time as the ING Investor Dashboard and involves online interviews with over 2,300 respondents conducted by an independent research firm.
About ING
ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services to over 85 million private, corporate and institutional clients in more than 40 countries. With a diverse workforce of about 107,000 people, ING is dedicated to setting the standard in helping our clients manage their financial future.
About ING Insurance Asia Pacific
ING Insurance Asia/ Pacific (IAP) offers insurance products including life, disability, health and personal insurance for individuals and institutions in Asia. It has built a network of over 60,000 tied and independent agents and established a number of preferred banking partnerships. IAP operates in seven markets in Asia including China, Hong Kong, India, Japan, Malaysia, South Korea, and Thailand.