Perception matters: understanding China's mortality protection gap
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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.
Key takeaways
- 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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