As Asia’s population ages rapidly, insurers must adjust their strategies to meet the changing needs of older adults, according to Ping Ji, Matt Singleton, and Torben Swart of Swiss Re Group, a global reinsurance company that provides research and risk management support to life and health insurers.
The authors emphasise that these changes are more than statistics—they are reshaping family structures, workforce patterns, health priorities, and financial security, creating new challenges and opportunities for insurers.
Despite growing demand, products aimed at older adults often fail to meet their evolving needs.
Ji, Singleton, and Swart draw on Swiss Re’s Protection Gap data to show that many seniors encounter offerings that feel irrelevant, struggle to trust providers, or are hard to access through existing distribution channels. Bridging this gap requires insurers to rethink product design and delivery for older consumers.
Ageing intersects with broader societal trends. Changes in caregiving responsibilities, gender disparities, and uneven public support all shape risk exposure, while health span continues to lag behind life expectancy.
These forces are creating greater pressures on public systems and highlighting the role private insurance can play in filling coverage gaps.
Older adults increasingly focus on healthcare affordability, long-term care, and financial security. Younger generations typically prioritise acute health coverage, whereas older consumers are concerned with ongoing medical costs and planning for later life.
Declining confidence in government healthcare amplifies opportunities for private insurance solutions that complement existing social support.
Effective product design requires balancing simplicity, affordability, and relevance. The authors suggest that adding targeted protection features to existing life or savings products can extend coverage without adding complexity.
Lessons from other markets, such as Long-Term Care riders in the US or Singapore’s CareShield program, offer guidance, though today’s older adults are more informed and selective, favouring products that are clear, purposeful, and aligned with evolving needs.
Legacy planning is also a rising priority, as older adults aim to support family and leave a financial legacy. Whole-of-life and legacy products exist across Asia, but uptake is limited due to low awareness and psychological barriers. Ji, Singleton, and Swart highlight that education, outreach, and convenient access are essential to driving engagement.
Designing solutions for older adults requires careful trade-offs. Rising risk profiles and declining disposable income make affordability critical, while underwriting complexity can challenge traditional approaches.
Phased payments, simplified underwriting, and value-added services, such as medical check-ups, can improve access while maintaining portfolio quality. Distribution is equally important; older adults rely on agents and financial advisors, while younger groups prefer digital channels, requiring insurers to support distributors with training and simplified products.
A practical example from Korea illustrates this approach: insurers created a cancer-specific Critical Illness product for seniors, with term-based lump sums and simplified underwriting, distributed through familiar channels.
This demonstrates that reframing existing products with age-appropriate messaging can be more effective than launching entirely new offerings.
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