What is the projected GDP per capita growth from life insurance increase?

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Projected GDP Per Capita Growth Linked to Life Insurance Uptake in ASEAN

A significant increase in life insurance uptake across six ASEAN nations could lead to substantial gains in GDP per capita, according to a recent study. Specifically, a 50 per cent expansion in life insurance coverage by 2050 is projected to result in an increase of up to 5.1 per cent in GDP per capita for countries including Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. This growth is underpinned by the role of insurance in fostering a more robust workforce and enhancing financial confidence among the population.
Impact of Life Insurance Expansion on GDP

The "Beyond Coverage" study highlights a direct correlation between increased life insurance penetration and economic prosperity. Quantitative modelling, utilising annual data from 1999 to 2019, indicates that a 50 per cent rise in life insurance uptake by the year 2050 could boost GDP per capita by as much as 5.1 per cent within the specified ASEAN countries. This suggests that a deeper integration of life insurance products into the financial landscape can translate into tangible improvements in individual economic standing.
Contribution to Total GDP

Beyond per capita figures, the study also forecasts an increase in the overall GDP of these six ASEAN nations. A 50 per cent growth in life insurance coverage is estimated to contribute to a 4.4 per cent expansion in the total GDP of Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. This broader economic uplift is attributed to the foundational role insurance plays in economic development and resilience.
Underlying Economic Drivers

The economic benefits stemming from increased life insurance uptake are linked to several key factors. These include the development of human capital, which is supported by individuals having greater financial security to invest in their education and well-being. Furthermore, enhanced labour force participation and capital deepening are also identified as crucial contributors to the projected GDP gains, as individuals and businesses feel more secure and are thus more inclined to engage in productive economic activities.

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What is the projected GDP per capita growth from life insurance increase?

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