The personal accident and health (PA&H) insurance industry in Asia-Pacific (APAC) is projected to grow from $203.0bn in 2020 to $421.9bn in 2026, in terms of written premiums, forecasts GlobalData, a leading data, and analytics company.

According to GlobalData, the PA&H insurance in Asia-Pacific is projected to grow at a compound annual growth rate (CAGR) of 13.0% over 2020-2026, backed by increased awareness and growing disposable income.

Deblina Mitra, Senior Insurance Analyst at GlobalData, comments: “The APAC PA&H insurance industry’s growth peaked at 17.8% in 2021, driven by economic recovery and increased insurance awareness. The region’s emerging markets with underdeveloped public healthcare system struggled during the pandemic to deliver healthcare due to a surge in demand beyond their capacity, compelling individuals to seek private healthcare, driving insurance sales.”

China was the leading PA&H insurance market in the APAC region with a 69.5% share of written premiums in 2021. Growing middle-income population, tax exemption, traction in remote healthcare services, and rising medical expenses were the major factors behind the growth. The formation of a new national pension company in 2021 to develop health insurance is expected to create substantial business for PA&H insurers from China’s $1.2 trillion pension sector. The PA&H insurance industry in China is expected to grow at a CAGR of 15.8% from 2020-2026.

Australia, with a share of 8.5% of written premiums in 2021, was the second-largest market in the region. The PA&H insurance industry in Australia is expected to grow at a CAGR of 5.1% over 2020-2026 with the lifting of restrictions on international travel, and awareness of mental health and well-being.

With every one in five Australians experiencing mental health issues, the demand for health insurance covering mental health witnessed growth. Psychology services and in-patient treatments/ rehabilitation are some of the mental healthcare services that are available under private health insurance.

Taiwan, India, and Japan constituted the region’s remaining top five markets with a combined share of 15.4% in 2021. PA&H insurance in Taiwan, India, and Japan is expected to grow at a CAGR of 4.5%, 9.8%, and 3.3% respectively, over 2020-2026.

Across Asia-Pacific, the integration of online healthcare services in insurance policies and personalized insurance propositions using wearable devices has gained traction in 2021. For instance, around 72% of Ping An Insurance’ Group’s new insurance customers have used its online healthcare platform ‘Ping An Health’ in 2021.

In addition, Cigna Singapore partnered with health software developer Pai Healthcare to introduce wearable technology in its health insurance plans. The insurer uses biometric data from the device to draw customized plans and premium rates for the customers.

Mitra concludes: “Economic growth and pandemic-led awareness coupled with the revival of the tourism sector will favor PA&H insurance’s growth over the coming years. Product innovation centering around personalization and inclusion of mental healthcare will be focus areas for insurers.”