In 2000, just 6% of the Asian population was aged 65 and above and this is estimated to reach around 10% in 2025 and is projected to further climb to nearly 20% by 2050 according to Swiss Re.
A new 6-page thought paper Life & Health Trend Spotlight Ageing in Asia – A strategic reckoning for insurers published by the global reinsurer under its risk knowledge series says this ageing shift is reshaping insurance needs across health, long-term care, retirement and legacy planning.
The article which gives a panoramic view of demographic transformation — and then dives deep into what it means for insurance industry says despite evident demand, insurance products targeting older adults often underperform.
Drawing on the reinsurer’s protection gap data, the article explores how protection priorities shift with age, offering a more nuanced understanding of older consumers. It then unpacks the key barriers that hinder insurance uptake among seniors — including product-customer mismatch, consumer mistrust and inertia, and persistent distribution challenges.
The article further shares two market examples — Korea and France — where insurers have made meaningful progress. These cases are practical and actionable, helping move the conversation from insight to experimentation. This section aims to spark ideas, encouraging insurers to explore new approaches in the silver economy.
The article provides its main observations as below:
- Asia’s demographic shift demands an urgent and strategic response from insurers.
- Insurers must understand the full ageing ecosystem, including public, family, and informal support structures.
- Adapting existing products with age-relevant messaging may be more effective than new product development.
- Addressing the psychological and timing-related barriers that prevent customers from acting on known risks.
- Striking a delicate balance between pricing and underwriting to ensure accessibility without compromising portfolio quality.
- Distribution capability gaps often outweigh product shortcomings and should be prioritised.