Life insurers shift focus to wealth and care to support longer retirements: Swiss Re

Senior-targeted cancer coverage is bundled with health or annuity plans.

Life insurers will need to move away from traditional income replacement and family-oriented protection products toward wealth planning and personal care funding solutions as populations age, according to Swiss Re’s latest sigma report.

To address these needs, insurers are expanding coverage models.

In Asia, senior-targeted cancer coverage in Thailand and Korea is being bundled with health or annuity plans to protect consumers from both medical and financial risks.

The study found that by 2050, 27% of people in advanced markets will be over 65, reshaping the types of financial protection consumers need. 

Swiss Re said this “silver economy” will drive a new phase of innovation as insurers adapt to serve an older, wealthier, and longer-living generation.

In advanced markets, the population aged 65 and above is projected to rise by 35% between 2025 and 2050.

Swiss Re Group Chief Economist Jérôme Jean Haegeli said longer lifespans will affect both the risk and asset sides of insurers’ balance sheets. 

As retirees draw down savings, inflation and long-term interest rates may rise, supporting stronger investment returns.

The report noted that the industry’s focus will shift from the accumulation phase to the decumulation phase, where retirees convert savings into income streams through pensions and annuities. 

By 2050, a 65-year-old in advanced markets could expect to live another 23 years, increasing the risk of outliving their savings.
Swiss Re also expects rising demand for long-term care and health protection.