current
Aging Population Shifts Demand
The aging global population and evolving customer purchasing patterns are creating new opportunities and challenges for insurers.
Timeframe
long-term
Categories
Impact areas
Detailed Analysis
The growing proportion of older individuals globally presents both opportunities and challenges for the insurance industry. The report highlights that "the share of the world’s population aged 65 or older is projected to grow from 12 percent in 2023 to 15 percent by 2033." This demographic shift necessitates a rethinking of insurance products and services to cater to the specific needs and risk profiles of older customers. For example, in auto insurance, older drivers tend to have lower accident frequency but higher severity and medical claim payouts, requiring adjustments in pricing and underwriting. Furthermore, evolving customer purchasing patterns, such as later-in-life major purchases, create opportunities for insurers to build long-term customer relationships by offering a range of personalized solutions throughout a customer's lifetime.
Context Signals
The global population aged 65+ is projected to reach 15% by 2033.
Older drivers have different accident frequency and severity profiles.
Major purchases are occurring later in life in developed markets.
Edge
Development of specialized insurance products for older customers, such as personal accident, in-home assistance, and multiyear policies.
Focus on building brand loyalty by offering personalized solutions throughout a customer's lifetime.
Opportunities for insurers to address the growing demand for retirement solutions.
