Insurers, Governments Must Address Longevity Challenges Together
People in developed countries tend to underestimate how long they will live, according to a new report from the Geneva Association, an international insurance think tank. This trend, coupled with an aging global population and a shrinking workforce, is reshaping demographics and creating new challenges and opportunities for the insurance industry.
The report, titled “Insurance and the Longevity Economy: Navigating Protection in the Era of 100-Year Lives,” surveyed 15,000 individuals across 12 countries in Asia, Europe, and the Americas. It revealed significant differences in perceptions of longevity. While those in developed countries often underestimate their lifespans, those in developing nations tend to overestimate them.
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Despite widespread concerns about healthcare and financial security in old age, many respondents indicated they felt unprepared for these risks. The report emphasizes that insurers, along with families and governments, have a critical role to play in managing these longevity-related challenges.
Jad Ariss, managing director of the Geneva Association, stated that insurers are well-positioned to help people navigate longer lives. “However, this will require industry-wide innovation and close collaboration with policymakers,” he added.
Adrita Bhattacharya-Craven, the report’s author, noted that while people acknowledge the risks of longer lifespans, translating this awareness into proactive measures remains a challenge. She stressed the importance of insurers moving beyond traditional products and developing broader solutions that address risks such as outliving savings, loss of physical independence, and the need to adapt to evolving work patterns.
