By Vincent Liu Liang
COVID-19 has increased awareness and demand for insurance products in China especially among certain population segments – according to a new report published by Tencent’s insurance platform WeSure together with Fudan University Department of Risk Management and Insurance and China Insurance and Social Security Research Centre.
Since the outbreak of COVID-19, the total number of new insured users, total visits to insurance platforms and annualised health insurance premiums have increased significantly in comparison to the previous year.
While WeSure data shows that the majority of users who actively purchase insurance on the platform are men, the proportion of women policyholders has increased significantly during the pandemic.
Since the spread of COVID-19 in December 2019, the ratio of the number of men and women purchasing insurance on WeSure has reduced from 2: 1 to 1: 1 which shows that the pandemic has stimulated demand for insurance and awareness of risks among women greatly.
For the report, WeSure also analysed the age of its users and found that demand for insurance has increased significantly among customers over the age of 30 especially those aged 35-38 years old.
This demand for insurance amidst the pandemic has resulted from a couple of factors. Customers born in the 1980s bear the responsibility of supporting their elderly parents and raising children while paying high living costs and housing prices. At the same time, they are more likely to suffer from illnesses and face other risks which requires financial protection.
In terms of insurance demand among different geographical areas in China, the report discovered that areas with higher per capita GDP recorded greater demand for insurance products. In areas where the per capita GDP exceeds $10,000 such as Beijing and Guangdong, the premium growth is said to be more significant during the pandemic.
Asia Insurance Review