Expanding insurance coverage could play a critical role in strengthening economic resilience, improving public health, and accelerating inclusive growth in the Philippines and across Southeast Asia, according to Beyond Coverage: The Social and Economic Impact of Insurance in ASEAN, a report by Prudential plc developed in partnership with PwC.
The study examines the broader social and economic impact of life insurance and non-life insurance (including health insurance) across six ASEAN markets: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Based on annual data from 1999 to 2019, quantitative modelling suggests that higher insurance adoption has the potential to boost economic development – adding over 4 per cent to GDP in the markets between 2023 and 2050 – by supporting workforce participation, increasing long-term investment, and strengthening human capital.
More specifically, in the Philippines, analysis suggests that a 50 percent increase in non-life insurance uptake by 2050 is projected to yield up to 2.9 per cent gain in both GDP per capita and total GDP. Expanding life insurance coverage by the same margin could have an even greater impact, potentially increasing GDP per capital and total GDP by up to 5.1 percent.
This comes at a pivotal time as the Philippines assumes the ASEAN Chairmanship in 2026, highlighting the importance of financial protection and resilience across the region’s fast-growing economies.
Insurance as a strategic tool for ASEAN
Across ASEAN, the insurance market has seen robust growth, with a compound annual growth rate (CAGR) of 6.1 percent from 2018 to 2022 – outpacing the region’s GDP growth of 4.9 percent during the same period[1]. This expansion has been driven by rising incomes, urbanisation, and increasing awareness of insurance products and services.
Despite this progress, insurance penetration remains relatively low. On average, insurance penetration across ASEAN stands at around 3 percent of GDP – less than half the global average of 6.7 percent, according to the report. This gap highlights a significant opportunity for countries like the Philippines to expand and strengthen insurance coverage to support broader social and economic development.
“The findings reinforce a critical point: insurance is not just a financial product, but a key enabler of inclusive growth. By improving access to protection, we can strengthen workforce participation, support capital formation, and build more resilient economies across the region. This underscores the importance of collaboration between governments, regulators, and the private sector,” said Atty. Calvin Kohchet-Chua, Pru Life UK Chief Legal, Government Relations, and Sustainability Officer.
Strengthening financial security
According to the report, labour force participation, capital growth, and human capital – identified as key factors of economic growth under the World Bank’s Long-Term Growth Model (LTGM) – can all be strengthened through insurance.
Health insurance, in particular, improves workforce productivity by enabling timely access to medical care without prohibitive out-of-pocket costs. When individuals are healthier and financially protected, they are more likely to remain active in the workforce and invest in their skills and education. Meanwhile, life insurance contributes to economic growth primarily through long-term investment and capital accumulation, fostering financial stability and supporting broader economic development.
For families, insurance coverage could help prevent financial shocks – such as illness, accidents, or natural disasters – from pushing households into debt or poverty.
In the Philippines, where climate-related risks and healthcare costs are rising which can quickly strain household finances, expanding access to insurance could strengthen financial security for households and businesses. By reducing the financial impact of these risks, insurance can support greater financial stability, encourage savings and investment, and contribute to stronger domestic consumption.
Supporting the Sustainable Development Goals (SDGs)
Beyond economic gains, the report underscores the role of insurance in advancing the United Nations’ SDGs.
Life and health insurance contribute to goals related to good health and well-being, decent work and economic growth, industry, innovation, and infrastructure, climate resilience, and partnerships. Insurance improves access to healthcare and financial protection, supports workforce productivity, and channels long-term investments into infrastructure and sustainable projects.
Insurers also help address climate risks through responsible investment strategies and resilience-building initiatives. Collaboration with governments and non-government organizations further strengthens efforts to deliver sustainable and inclusive development. Creating a supportive policy environment for the insurance sector can accelerate progress toward the SDGs while reinforcing broader social development outcomes.
Industry collaboration needed
To unlock the full potential of insurance in ASEAN, the report calls for stronger collaboration among governments, regulators, and industry stakeholders.
Immediate measures such as fiscal incentives and responsive regulatory frameworks can help expand insurance adoption. Over the longer term, efforts should focus on talent development, public-private partnerships, innovation ecosystems, and increasing public awareness of insurance’s value.
As the report emphasises, insurance should not be seen solely as a safety net, but as a powerful engine for economic opportunity – enabling individuals, businesses, and communities to move forward with greater confidence and resilience.
Read the entire report here.
[1] The ASEAN Insurance Council, ASEAN Statistical Report 2023.
