Accenture, in partnership with the International Finance Corporation (IFC) and AXA, recently released SHEforSHIELD: Insure Women to Better Protect All, a report that examines opportunities for the women’s insurance market globally and in 10 emerging markets: Brazil, China, Colombia, India, Indonesia, Mexico, Morocco, Nigeria, Thailand and Turkey.
Women are increasingly willing to spend on insurance
In light of increasing economic contributions to their households, women in emerging markets can gain bargaining and spending power. Furthermore, they have been shown to be more willing to spend on insurance.
- With greater income, women may have more household bargaining power. As contributors to household decisions, women spend differently than men, focusing their income on improving and protecting the household. In addition, women are increasingly heading up households—and making insurance purchasing decisions for their families.
- Women are willing to pay for peace of mind. In general, women are more risk-aware than men, and are willing to spend to protect themselves and their families against risks. In China, Mexico and Turkey, women currently spend 5–8 percent of their income on insurance, but report they would be willing to spend up to 10–20 percent to protect against future risks.
- Women act as conduits to the family. Women, especially working mothers, tend to purchase insurance for others in their family: parents, spouses and children. For insurers, this can be an opportunity to cross-sell products to the household and decrease distribution costs by focusing on one decision maker.
The report notes one caveat to these trends. In some societies, improvements to women’s economic position may be out of sync with traditional women’s roles, and can create conflict within the family. When considering the trends in any individual market, insurers must be cognizant of existing social and cultural factors and adapt accordingly.
For more information:
- Read Growth drivers of insurance for women, part 1: Increased spending ability.
- For in-depth insights from the report, download SHEforSHIELD: Insure Women to Better Protect All.
- Email me to learn how Accenture can help insurers capitalize on the women’s insurance market in emerging markets.