Insurance in Asia
This article responds to a comment on my last blog about earthquake insurance by a reader who noted that many Asians are not keen on purchasing insurance because they find it too expensive, claims officers are corrupt, or it brings bad luck.
I see risk management as a basic human instinct. It’s not that people do not insure – people prefer “self-insurance” to purchasing affordable insurance. Insurance is often viewed as a product of the sophisticated, capitalistic system of the West. And those who are outside this cultural group are less likely to value insurance protection.
They rely on informal insurance, such as a family network. Therefore, you are right when you say that Asians are typically less focused on buying insurance. It is also this same set of people who hold the belief that insurance has no value, and consider any money spent on insurance to be a waste. It is often futile to discuss with them their potential risks, or how insurance can be helpful and will have any impact...