In China, insurance protection against mortality risk is low as many consumers under-estimate or avoid discussion of it. Insurers can seize this growth opportunity by communicating the benefits of mitigating mortality risk with life insurance.
China's mortality protection gap stood at USD 41 trillion in 2019 by our estimate, equating to about 280% of GDP.
Life insurance makes a far smaller contribution to mortality risk protection in China than in advanced economies and others of similar GDP per capita in Asia.
Consumers share a perception that life insurance protection is not necessary, despite high awareness.
The premium growth potential is estimated at USD 160 billion per year in China should the mortality protection gap be closed.
Insurers can help to ensure consumers fully understand the benefit of using life insurance to mitigate mortality risk.
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The COVID-19 crisis is underscoring the vital role of insurance in strengthening household resilience to a shock such as the loss of a breadwinner. Our new research maps the mortality protection gap across the Asia-Pacific region.