Today’s release of SHEforSHIELD: Insure Women to Better Protect All provides an in-depth view of the opportunity for women’s insurance globally, with a special focus on ten emerging markets. Developed in partnership among Accenture, the International Finance Corporation (IFC) and AXA, the report estimates that the annual premium value of the women’s global market will more than double from 2013 to 2030, to US $1.7 trillion.
Socioeconomic changes are enhancing women’s spending ability
The report reveals that three socioeconomic changes are contributing to women’s increased ability to spend money—and therefore, to buy insurance.
- More women are getting post-secondary education. In 9 of the 10 developing countries included in the study, women’s education increased from 2008–2014 by an average of 6 percent (compared to 4 percent for men). Increased education can directly impact women’s ability to access formal jobs and better understand risk mitigation tools.
- More women are joining the labor market. While a slowdown in the global economy has stalled labor participation, the study showed that in 5 of the 10 emerging market focus countries (Brazil, Mexico, Morocco, Nigeria and Turkey), female labor force participation increased by 1 to 4 percent each year from 2008–2014. With increased access to income, women in these markets also have greater capability to purchase insurance. Further, women are more likely than men to ask their employers for insurance.
- Women’s income is increasing in emerging markets. Despite a persistent wage gap, women’s income is expected to grow at a faster rate than men’s. Women’s income is expected to grow at rates ranging from 3 to 13 percent each year.
In short, in markets where more women are gaining post-secondary education, entering the labor force and earning a higher income, they also have greater ability to spend money on insurance. That said, in order to fuel growth, women in emerging markets must also be willing to spend money on insurance—that’s the topic of next week’s blog post.