The world’s emerging economies are producing a new middle-class customer, with more disposable income and need for protection in all forms of insurance—especially life insurance.
According to the Pew Research Center, the world’s middle-income population nearly doubled from 2001 to 2011, increasing by 386 million, to 783 million. Looked at by share, the global middle class increased from 7 percent of the world’s population to 12 percent by 2011.
Based on current projections, middle-class growth over the next 15 years will be led by five countries: China, India, Indonesia, Nigeria, and the Philippines.
Top Five Emerging Markets with the Best Middle Class Potential: 2015-2030
Source: Euromonitor International
Life insurers should view these emerging markets as having strong potential in the years ahead. Although many of these people are still “poor” based on US standards, this growth represents something to reckon with in the future. By leveraging digital platforms, data analytics, cloud computing and risk modeling tools, insurance can be poised to deliver risk protection products to people in the emerging world.