There is a significant demand across Asia for affordable, simplified private health and protection products tailored to address risks facing the elderly population, according to the findings of a survey by Reinsurance Group of America (RGA), a leading global life and health reinsurer.
Titled “Aging in Asia: Inclusive Insurance Study on Seniors”, the report is based on RGA’s quantitative consumer survey of 1,636 respondents ages 55-80 with minor health impairments across eight key markets: China, Hong Kong, India, Japan, South Korea, Taiwan, Thailand, and Vietnam. The study reveals gaps in life and health insurance that the industry must address to meet the protection requirements of the region’s rapidly expanding senior demographic.
“With over 1.2bn Asians projected to be aged 65 or older by 2060, this demographic shift represents a substantial growth opportunity for insurers if they can collaboratively modernise to provide innovative solutions for the senior population,” said Mr Micheal Shin, CEO of Korea; SVP of Japan; and chief marketing officer of Asia, RGA. “Our research highlights an urgent need for insurers to develop specialised solutions addressing the unique concerns and vulnerabilities of aging consumers currently underserved by existing products.”
According to the survey results, 72% of seniors indicated that they needed private health insurance, followed by annuity (55%) and critical illness products (51%). COVID-19 heightened consumer demand for health coverage, including medical treatments, as well as a focus on maintaining financial stability and the ability for self-care.
For those who applied for insurance but did not purchase a policy for life insurance, private health, or critical illness insurance, nearly 50% had some portion of the benefits denied due to pre-existing conditions, while 21%-30% were denied coverage entirely. Among the respondents, hypertension (40%) was the most common existing health impairment, followed by high cholesterol (23%) and diabetes (23%).
The study identified several barriers currently limiting seniors’ insurance access and ownership, as well as their preferences in life insurance, private health, and critical illness insurance, including:
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Premium costs being too high (37%-46%) and policies being too hard to understand (34%-42%) are the top barriers to purchasing life and health insurance products.
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In Asia, cancer (56%), stroke (47%), and heart attack (37%) are the primary health concerns, although dementia is one of the top concerns among respondents in Japan, South Korea, and Taiwan with aged or super-aged populations (super-aged markets have the high proportion of seniors over 65 years of age).
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While agents and brokers (48%-54%) remain the favoured channels for purchasing insurance, there is increasing openness to digital platforms and bancassurance options (35%-37%).
“By rethinking pricing, designing valuable insurance coverage options, enhancing underwriting accessibility, and investing in highly trained, senior-centric distribution and service models, the industry can compassionately meet this vital need and drive sustainable growth in this underserved market,” said Mr Shin.
Founded in 1973, RGA is a global industry leader specialising in life and health reinsurance and financial solutions that help clients effectively manage risk and optimise capital.