• More than 80% of Emerging Asia’s middle-class consumers report using generative AI weekly, but 60% actively verify its outputs
• While generative AI is being used to research and compare insurance options, 52% strongly prefer human advice at the selection and purchase stage, versus 12% who strongly prefer AI advice
• 55% say their health insurance premiums have risen from last year; preventive care is the top action consumers are taking to manage healthcare costs
• EV purchase intent is broadly level with petrol vehicles, while insurance-cost perceptions remain mixed

Emerging Asia’s middle-class consumers are rapidly adopting generative AI but continue to value human judgement for consequential financial decisions, according to the fifth Peak Re Emerging Asia Middle Class Consumer Survey.

Based on 8,000 consumers across China, India, Indonesia, Malaysia, the Philippines, Thailand and Vietnam, this year’s study[1] examines the evolving protection landscape amid generative AI adoption, rising medical-cost pressures and a shift towards electric and increasingly automated vehicles.

AI adoption and trust

More than 80% of respondents use generative AI weekly, including for shopping recommendations, healthcare support, and advice on finance and insurance. Yet trust in AI appears more nuanced when decisions carry greater financial or personal consequences: around 60% of AI users can be characterised as ‘verifiers’, actively cross-checking AI outputs with other sources or professional advice.

In insurance, consumers use AI to compare products and understand policies, but 52% strongly value human advice at selection and purchase, versus 12% who strongly prefer AI advice. Consumers also prefer human involvement over AI in claims handling and claims decisions. 

“The survey shows that consumers across Emerging Asia are rapidly integrating AI into their daily lives, including how they research financial and insurance products,” said Victor Kuk, Chief Executive Officer of Peak Re. “While many appreciate the convenience and accessibility AI offers, human judgement remains important for more complex or consequential decisions. This presents an opportunity for insurers to combine technological innovation with trusted expertise to better serve evolving customer needs.”

Generative AI may help ease consumer uncertainty around claims filing

Among respondents who filed or considered filing a claim in the previous year, 43% said generative AI increased their likelihood of filing, versus 10% who said it reduced it. Middle-class consumers in Emerging Asia report using AI to understand claim procedures and coverage and to get a sense of potential claim outcomes. These uses suggest that AI may help reduce the perceived effort and uncertainty around filing a claim, while consumers continue to prefer human involvement in claims handling and decisions.

Consumers adapt to medical inflation through preventive measures

54% of respondents believe medical costs are rising faster than general prices. Among those who personally pay for health insurance, 55% report higher premiums compared to the preceding year. Even so, most retained or increased health coverage at renewal.

Preventive measures, including regular health screenings, are the most common response to rising healthcare costs, while some consumers report switching to public healthcare or cheaper generic medications. Amid premium increases, consumers also place greater value on added benefits such as preventive care packages in their health insurance policies, over cost-sharing measures.

Consumers show growing interest in EVs, though perceptions of insurance costs remain mixed

Purchase intent for fully electric vehicles is broadly in line with that for petrol or diesel vehicles. However, views on EV insurance costs, repair costs, and driving safety are mixed. On automation, consumers favour driving assistance features, but confidence declines for full automation. Even if self-driving features reduce accidents, 42% believe premiums are likely to remain unchanged, with higher repair costs perceived as potentially offsetting lower crash frequency.

“In a rapidly changing world, it is becoming increasingly important to understand how consumers define value and trust, and how they assess their risks and protection needs as new technologies emerge. The findings highlight the role re/insurers can play in helping consumers better understand new risks, coverage and their insurance implications,” said Kritika Kashyap, Economist at Peak Re.