The silver shift – Insurance and claims in an aging society
An aging population has a multifaceted impact on insurance markets which need to balance health, disability and care needs against the risks presented by an older population who continues to enjoy travelling and physical activities in retirement. So what is the likely impact on writing policies of this changing demographic landscape?
By 2050, for every 100 working age individuals there will be 26 older people to support. There are currently 16 older people per every 100. With improving health care and better standards of living, these figures will continue to increase. As such, new insurance models will be necessary which will need to monitor the change and offer products aligned to this specific population.
The trend is for smaller households in more densely populated areas. The value of items inside the home will increase as people embrace technology to and as this assists in day-to-day running of the home..
Use of vehicles declines as individuals age but for those retiring early, with disposable income and good health, travel is a key goal and expensive standalone travel policies will need to evolve.
Insurers face challenges in this landscape and should consider a flexible model having regard to the following:
- Reducing complexity of policies with prevention-driven solutions.
- Integrating protections within policies to provide holistic cover solutions. Policies will need to provide insurance for property, items within the home, general health provision, accident prevention and home maintenance to demonstrate a personal service. This bespoke approach may attract higher premiums.
The older population is not a homogenous group and many individuals may wish to continue working beyond their mid to late 60s. Employers will need to be aware of injury risk at work and consider approaches to knowledge retention with bespoke training provided. The benefit of employing older individuals is their experience but employers will need to consider their policies and training models and be flexible in their approach to accommodate the needs of older workers.
In this era of demographic change there is an opportunity for insurers to assess the market and respond to emerging risks now with new approaches to insurance cover.
Our Catastrophic & Serious Injury solicitors support insurers and employers in responding to these challenges through strategic risk insight and tailored advice. Find out more about our Catastrophic & Serious Injury services.
