Smart technology and climate volatility underpin emergent property insurance products and the growing demand for them in the Asia-Pacific region. A new report from the data analytics firm, GlobalData, projects USD $85.6 billion in written property insurance premium across the region by 2023, representing 4.6 per cent compound annual growth from the USD $71.5 billion tally in 2019.
Advancements in the collection of real-time data is accelerating and refining damage assessment and processing of claims. Dubbed insurtech, it includes on-site monitors gathering insight on safety and risk situations, along with the ability to harness drones or satellites to quickly investigate property damage.
Through insurtech, some property owners in the Asia-Pacific now have new insurance options for a pre-agreed payout when a triggering event occurs. For example, data from the Hong Kong Observatory triggers typhoon-related payouts for Swiss Re’s recently introduced property insurance product in Hong Kong.
“The property insurance industry is expected to evolve driven by technological developments, which allow insurers to provide customized and event-specific insurance,” observes Manisha Varma, an insurance analyst with Global Data.
Construction and manufacturing activity are also central to rising property insurance demand in a dynamic region, in which China is a predominant player. “Despite the initial slowdown in 2020 due to COVID-19 pandemic, many economies are now exhibiting signs of recovery following the lifting of lockdown restrictions,” Varma says.