A recent report by the Reinsurance Group of America (RGA) highlights a growing trend among ageing populations in Asia regarding their preferences for insurance coverage. Despite Japan and India leading in life insurance ownership, with 58% and 54% respectively, one in five elderly individuals express a reluctance to invest in life insurance.
The study, titled “Ageing in Asia: Inclusive Insurance Study on Seniors,” reveals that by 2060, nearly one-third of East Asia’s population and about one-fifth of Southern and Western Asia’s population will be aged 65 and older, totaling approximately 1.2 billion people. Although many Asian countries place high importance on public health care, confidence in these systems varies. Notably, older markets like South Korea, Japan, and Taiwan exhibit lower trust due to their weakened public health frameworks.
Interestingly, the report indicates that critical illness (CI) insurance (96%) and private health insurance (97%) garner significantly more interest than life insurance (83%) among ageing populations. While 35% of respondents claim ownership of life insurance, the figures for private health and CI insurance are 29% and 35%, respectively.
Despite these numbers, many individuals hesitate to purchase all three types of coverage. Exclusions related to pre-existing conditions and high premium costs were cited as major barriers. In the first quarter of the year, RGA analyzed responses from 1,636 individuals across eight key Asian markets, including China, Hong Kong, India, Japan, South Korea, Taiwan, Thailand, and Vietnam.
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