A new study from the Geneva Association highlights growing concerns over healthcare access and retirement savings, with many individuals believing they are financially more prepared than they may actually be. The research also underscores the challenges faced by insurers due to longer life expectancy and declining birth rates.
The study, titled Insurance and the Longevity Economy: Navigating Protection in the Era of 100-Year Lives, surveyed 15,000 people across 12 countries in Asia, Europe, and the Americas. It reveals that more than two-thirds of respondents express worries about healthcare access, retirement funds, and public safety nets, despite rating their financial preparedness higher than is likely the case.
The findings also show that developed countries often have populations that underestimate their life expectancy, while people in developing nations tend to overestimate it. This discrepancy presents challenges for insurers in tailoring products to meet the needs of different markets.
Insurance emerged as one of the top three institutions—alongside family and government—considered crucial for helping individuals prepare for longer life spans. However, attracting younger generations to insurance remains a challenge, with the study suggesting a growing demand for simpler, more appealing products.
The report also highlights the demand for greater independence in old age, which presents an opportunity for insurers to design solutions that promote autonomy, including innovative risk-sharing models.
Additionally, the study calls for increased collaboration between insurers and policymakers to address the global pension protection gap, estimated at $1 trillion annually. Key steps for improving the situation include expanding financial literacy, revisiting data regulations, and enhancing public-private partnerships in pension and healthcare financing. The creation of regulatory frameworks that attract investment to support annuities, guaranteed savings, and health insurance will be vital in managing longevity risks in the future.
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