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 capita 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 . 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.
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About Pru Life UK
Pru Life UK is the leading life insurer in the Philippines demonstrating its commitment to protect Filipinos’ financial future and well-being for every life, for every future.
Established in 1996, Pru Life UK operates in over 200 branches and general agency offices in the Philippines, and holds the largest life insurance agency force of over to 35,000 licensed agents.
Pru Life UK offers a wide range of tailored solutions that address the unique and evolving needs across demographics and life stages. These include life protection, health, accident and disability, and investment-linked insurance.
Currently, Pru Life UK serves over 930,000 individual policyholders and more than 85,000 insured group members, and ranks first in New Business Annual Premium Equivalent* as of FY 2025, according to the Insurance Commission.
Pru Life UK is a subsidiary of Prudential plc, with a legacy of more than 175 years of safeguarding the future of millions of families for this generation and generations to come.
Pru Life UK is headquartered in 9/F Uptown Place Tower 1,1 East 11th Drive, Uptown Bonifacio, Taguig City 1634, Metro Manila, Philippines. Its main customer center is located in G/F Cluster 2, Uptown Parade, Megaworld Blvd. corner 36th street Uptown Bonifacio, Taguig City 1634, Metro Manila, Philippines. Its customer center contact details are: +63 (2) 88875433 (within Metro Manila) and 1-800-107785465 (for domestic toll-free via PLDT landline), email: contact.us@prulifeuk.com.ph.
The PRU customer center processes customer concerns based on applicable timelines provided by the law. Visit www.prulifeuk.com.ph/en/contact-us/ for the list of its branches and more information.
Pru Life UK is legally permitted to provide financial products or services in the Philippines as regulated by the Insurance Commission.
The Insurance Commission’s head office is located in 1071 United Nations Avenue Ermita, Manila, Philippines. Their Cebu District office is located at Unit 17, Ground and Second Floors, The Gallery, Pope John Paul II Avenue, Barangay Kasambagan, Cebu City, while their Davao District office is in Door 2 & 3, 3rd Floor of YAP Building Quimpo Boulevard, Ecoland, Davao City. Visit www.insurance.gov.ph/contact-us/ for more information.
