Asia’s growing senior population presents opportunities for insurers: RGA

Growth opportunities are emerging for insurers as demand for private coverage rises among Asia’s growing senior population, according to a recent report by Reinsurance Group of America, Incorporated (RGA).

The report is based on a survey of 1,636 respondents aged 55 to 80 with minor health issues across China, Hong Kong, India, Japan, South Korea, Taiwan, Thailand, and Vietnam.

The study identifies gaps in life and health insurance that the industry needs to address to meet the protection needs of this rapidly growing demographic.

Michael Shin, Chief Executive Officer, Korea; Senior Vice President, Chief Marketing Officer for Asia, stated, “With over 1.2 billion Asians projected to be aged 65 or older by 2060 , this demographic shift represents a substantial growth opportunity for insurers if we can collaboratively modernise to provide innovative solutions for the senior population.”

He continued, “Our research highlights an urgent need for insurers to develop specialised solutions addressing the unique concerns and vulnerabilities of ageing consumers currently underserved by existing products.”

The survey found a strong demand for affordable and straightforward private health and protection products tailored to the risks faced by the elderly.

Results indicated that 72% of seniors expressed a need for private health insurance, followed by 55% for annuities and 51% for critical illness products.

The COVID-19 pandemic has further intensified the demand for health insurance, emphasising the need for medical treatments and a focus on financial stability and self-care.

Among those who applied for insurance but did not purchase a life, private health, or critical illness policy, nearly 50% faced some denial of benefits due to pre-existing conditions, while 21%-30% were denied coverage altogether. The most common health issues reported were hypertension (40%), high cholesterol (23%), and diabetes (23%).

The study also revealed that the main barriers to purchasing life and health insurance products were high premium costs (37% to 46%) and policies being too hard to understand (34% to 42%).

“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,” Shin concluded.

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