Silver Economy Sparks Growth in Life Insurance Sector

The rise of the "Silver Economy" is reshaping the life insurance industry, as nearly a quarter of all individuals in advanced markets are expected to be over 65 by 2050. Swiss Re's sigma report highlights that increasing life expectancy and wealth concentration among seniors will drive demand for products offering income and care coverage. Insurers must adapt by redesigning annuities and risk-sharing mechanisms to meet these changing needs.

In advanced markets, the number of people over 65 could rise by 35% by 2050. In nations like Japan and South Korea, more than 30% of the population is already over 65. This demographic shift signifies a transition in insurance from family-oriented products to wealth planning and care funding solutions.

The assets of US households aged 55 plus underscore the shift toward older generations' financial power. Longer lifespans will impact both risk and investment returns, presenting opportunities for insurers to redefine relevance to retirees.