Source: Insurance Asia
Rapid changes in mobility trends, including a 35% increase in electric vehicle (EV) sales in 2023, are reshaping the sector. EVs, which could represent 15% of global vehicle operations by 2030 and 30% by 2035, drive higher average claim costs due to their more expensive components.
Asia is leading the adoption of embedded insurance, particularly in non-life sectors, with the market projected to reach $170b by 2030. Public life insurers are regaining some ground thanks to favourable interest rates and renewed growth focus, but they still face declining relevance compared to other sectors. Transparency issues and slow growth in initiatives contribute to this disadvantage. The ageing global population presents a growth opportunity as wealth shifts toward Generation X and retirees.
Insurers are expected to cater to the rising demand for retirement solutions, with the “silver” population projected to double by 2050. In Asia, innovations like integrated digital services are enhancing customer engagement, with China leading this trend.
Top-performing insurers achieve better loss ratios by modernizing underwriting processes and leveraging AI for efficiencies. Despite these advances, cost pressures are causing small and medium enterprises (SMEs) to forgo certain coverages, creating gaps in protection. Addressing these gaps with cost-effective solutions represents a major opportunity for growth.
Read the full article: https://insuranceasia.com/insurance/news/asia-leads-in-embedded-insurance-set-reach-170b-2030
