In the dynamic situation of the global insurance market, the 2024 Brand Finance Insurance 100 report unveils a narrative of resilience and strategic prowess. The chronicle of the world’s top five most valuable insurance brands serves as a testament to their unwavering activity to innovation and adaptability.
The trio of Chinese insurance giants—Ping An, China Life Insurance, and CPIC—have not only maintained but fortified their positions in the echelons of brand value and strength. Particularly noteworthy is Ping An, which has sustained its reign as the most valuable insurance brand globally for an impressive six consecutive years.
The epicenter of brand strength has shifted eastwards, with Asia-Pacific (APAC) brands seizing the top three spots for the strongest brands, led by LIC. This shift mirrors the region’s burgeoning economic clout and demographic evolution.
Amidst economic uncertainty, where factors like climate change and inflation loom large, there emerges a silver lining. Brands such as NRMA Insurance and Tryg have leveraged these challenges to fuel significant growth in brand value, akin to rays of sunlight piercing through a cloudy sky.
Allianz, headquartered in Germany, has distinguished itself by achieving the highest Sustainability Perceptions Value at USD 3.7 billion, a clear indicator of its environmental stewardship resonating with consumers.
The report details the ascent of Chinese brands, with Ping An leading the charge, its brand value swelling by 4% to USD 33.6 billion. China Life Insurance and CPIC follow suit, with respective increases to USD 17.5 billion and USD 15.3 billion. These figures starkly contrast with the marginal dips in brand strength experienced by European stalwarts Allianz and AXA.
The narrative takes a turn as CPIC’s Brand Strength Index (BSI) score surges by 2.4 points, reaching 79.9 out of 100, an increase that earned it an upgrade from AA+ to AAA- in brand strength rating. Meanwhile, Allianz and AXA have maintained their AA+ ratings despite slight declines in their BSI scores.
APAC region brands have emerged as paragons of strength, with LIC at the forefront, its brand value incrementally increasing to USD 9.8 billion. Cathay Life Insurance and NRMA Insurance follow, with their brand values ascending by 9% and a staggering 82%, respectively.
The insurance landscape has been reshaped by the tempestuous macroeconomic climate, marked by rampant inflation and the specter of climate change. In response, insurance brands have recalibrated their strategies, raising premiums, and strategically withdrawing from vulnerable markets. This recalibration has catalyzed growth in premium forecasts and, consequently, brand value for a significant majority of the brands surveyed.
Alex Haigh, Managing Director of Brand Finance Asia Pacific, encapsulates the essence of this evolution, noting the agility and innovative spirit of Chinese insurance brands and the commendable adaptability of European entities like Allianz and AXA. Their customer-centric approaches and digital transformations are pivotal in the insurance sector’s adaptation and growth.
In the realm of global insurance, the interplay between perception and reality takes center stage in the valuation of brands. The Sustainability Perceptions Index, a pivotal component of Brand Finance’s analytical arsenal, quantifies the impact of sustainability on brand equity. This index reveals the portion of a brand’s value influenced by its reputation for sustainable practices, termed the Sustainability Perceptions Value (SPV).
The SPV represents the financial stake hinged on a brand’s sustainable image. Brand Finance, in conjunction with CSRHub’s environmental, social, and governance (ESG) metrics, delves into the ‘gap value’—the potential financial gain or risk stemming from the disparity between perceived and actual sustainability efforts.
The latest findings spotlight Allianz as the frontrunner in the insurance sector, boasting the highest SPV at USD 3.7 billion, coupled with a positive gap value of USD 299 million. Allianz’s perceptual and actual sustainability scores eclipse the industry average across all ESG dimensions, underscoring robust public recognition of its sustainability initiatives and the authenticity of its ESG commitments.
The gap value harbors the promise of additional value generation for Allianz, to the tune of USD 299 million. A positive gap value signifies that a brand’s sustainability performance surpasses public perception, suggesting that there is untapped value to be harnessed through more effective communication of sustainability endeavors. By aligning perceptions with reality, brands can unlock the full potential of their sustainability performance.
