According to the EY Global Insurance Consumer Survey, financial fragility and health-related concerns are more prevalent among young consumers in emerging market countries, and the desire for insurance protection is increasing. The survey surveyed 4,200 consumers in seven countries: Africa, Asia, North America, and South America.
This study looks at the growing protection gap between consumers in emerging markets and consumers in developed markets. It also provides insights into how the COVID-19 pandemic affected consumer economic risk, vulnerability and insurance preference needs.
According to the survey, consumers in emerging markets had a greater economic impact from pandemics than consumers in developed countries. While 78% (78%) of emerging market consumers had to immerse themselves in savings, 61% lost income and 54% had to skip some invoices and payments, They were 33%, 30% and 22% respectively. Developed market. In addition, vaccination rates in emerging markets are fairly low, and concerns about losing loved ones and financial well-being are fairly high.
According to EY, the demographic breakdown of consumers in each market affects how pandemics affect financial stability. Emerging market consumers are young (75% under the age of 44 and only 3% retired) and often do not have comfortable financial cushions and specific insurance coverage. For example, 37% in developed markets, while only 10% have more than $ 100,000 in investable assets. Only 56% of consumers in emerging markets cover their homes, compared to 88% in developed countries.
“Insurers play an important role in protecting those who need them most,” said Fayez Jaffer, EY Americas’ insurance product innovation leader. “They must start by building trust through personal connections and empathy to gain a deeper understanding of their clients’ personal and financial goals. Humans, especially across digital channels preferred by young consumers. Connecting with our clients at the level is essential to meeting their evolving needs, improving their financial well-being and building long-term sustainable relationships. “
EY states that consumers in emerging markets are eager to buy insurance products. Consumers in both emerging and developed markets have shown interest in short-term products such as insurance to fund college education programs and pay credit card bills in the event of unemployment. However, of all eight products proposed in the EY survey, consumers in emerging markets were almost twice as motivated to buy.
The study also found that corporate social responsibility (CSR) plays an important role in making purchase decisions in emerging markets. This pandemic, along with other events last year, raised consumer interest in CSR and raised expectations about how businesses can contribute to society. According to EY, 59% (59%) of consumers are at least somewhat familiar with the insurer’s CSR stance, and consumers in emerging markets are more aware of their social responsibility. A quarter of survey respondents said they chose one insurance brand over another because of their CSR reputation.
Bernhard Klein Wassink, EY’s global insurance customer and growth leader, said: “More than ever, insurers are focused on bringing these issues to the forefront of their products and services, helping the most vulnerable people in their financial and social recovery efforts, especially in uncertain environments. You should guess. “
EY’s research provides insights into the economic protection gap
Source link EY’s research provides insights into the economic protection gap