Page 18 - Insurance Times May 2022

average of 1.1%. Recovery in the specifically, have huge brand recogni- liver healthcare due to a surge in de-
economy, increasing vehicle sales and tion and reputations for digital capa- mand beyond their capacity, compel-
a strong pipeline of construction bilities and fast customer service. They ling individuals to seek private
projects are expected to support the already have strong tie ins to many healthcare, driving insurance sales.”
growth of the Malaysian general insur- homes across the UK, with Google China was the leading PA&H insurance
ance industry over the next five years.” Home and Amazon Echo, respectively. market in the APAC region with a
Energy suppliers also have a presence 69.5% share of written premiums in
Google poses the greatest within UK insurance, with British Gas 2021. Growing middle-income popula-
being the leading supplier of home
threat to traditional home tion, tax exemption, traction in re-
emergency insurance (for standalone mote healthcare services, and rising
insurers as over 25% of UK products) in the UK. medical expenses were the major fac-
consumers would pur- Carey-Evans adds: “In reality, it looks tors behind the growth. The formation
like these players will look to come in of a new national pension company in
chase home insurance
as partners for insurers and offer the 2021 to develop health insurance is
from the tech giant technology to aid products. However, expected to create substantial business
The accelerated rise of digitalization GlobalData found that if these compa- for PA&H insurers from China’s $1.2
since the pandemic and increased use nies did decide to offer end-to-end trillion pension sector. The PA&H insur-
of smart home devices means that household products, a significant pro- ance industry in China is expected to
technology companies and outside play- portion of consumers would view them grow at a CAGR of 15.8% from 2020-
ers pose a threat to insurers in the UK as viable providers, so the threat to 2026.
by utilizing their skills in digitalization incumbent insurers is there.” Australia, with a share of 8.5% of writ-
and strong brand recognition to at- ten premiums in 2021, was the sec-
tract customers. Research conducted GlobalData forecasts Asia- ond-largest market in the region. The
by GlobalData, a leading data and Pacific personal accident PA&H insurance industry in Australia is
analytics company, suggests that expected to grow at a CAGR of 5.1%
Google poses the greatest threat to and health insurance to over 2020-2026 with the lifting of re-
UK insurers. double by 2026 strictions on international travel, and
GlobalData’s 2022 UK Insurance Con- The personal accident and health awareness of mental health and well-
sumer Survey found that over a quar- (PA&H) insurance industry in Asia-Pa- being.
ter of UK consumers would be pre- cific (APAC) is projected to grow from With every one in five Australians expe-
pared to purchase home insurance $203.0bn in 2020 to $421.9bn in 2026, riencing mental health issues, the de-
from Google, were it to enter the in terms of written premiums, fore- mand for health insurance covering men-
market. Energy suppliers and Amazon casts GlobalData, a leading data, and tal health witnessed growth. Psychology
also scored well. analytics company. services and in-patient treatments/ re-
Ben Carey-Evans, Senior Insurance According to GlobalData, the PA&H habilitation are some of the mental
Analyst at GlobalData, said: “Amazon insurance in Asia-Pacific is projected to healthcare services that are available
will be a particular concern for insur- grow at a compound annual growth under private health insurance.
ers as it has been rumored to be on rate (CAGR) of 13.0% over 2020-2026, Taiwan, India, and Japan constituted
the verge of entering the insurance backed by increased awareness and the region’s remaining top five mar-
industry for many years now. growing disposable income. kets with a combined share of 15.4%
Facebook, on the other hand, is un- in 2021. PA&H insurance in Taiwan,
likely to be as successful as a result of Deblina Mitra, Senior Insurance Ana- India, and Japan is expected to grow
negative press stories in recent years. lyst at GlobalData, comments: “The at a CAGR of 4.5%, 9.8%, and 3.3%
APAC PA&H insurance industry’s
Consumers are also unlikely to view respectively, over 2020-2026.
growth peaked at 17.8% in 2021,
WhatsApp as a viable provider of such
driven by economic recovery and in- Across Asia-Pacific, the integration of
a serious product.”
creased insurance awareness. The online healthcare services in insurance
Google, Amazon and any energy sup- region’s emerging markets with under- policies and personalized insurance
plier, offer the biggest threat to tradi- developed public healthcare system propositions using wearable devices
tional insurers. Google and Amazon struggled during the pandemic to de- has gained traction in 2021. T

18 The Insurance Times, May 2022