Insurers, governments must address longevity challenges together

People in developed countries tend to underestimate their lifespans.

A growing elderly population and a shrinking workforce are reshaping global demographics, creating both challenges and opportunities for the insurance industry, according to a new report by the Geneva Association.

The report, “Insurance and the Longevity Economy: Navigating Protection in the Era of 100-Year Lives, revealed that people in developed countries tend to underestimate their lifespans, whilst those in developing nations overestimate them. 

Based on a survey of 15,000 individuals across 12 countries in Asia, Europe, and the Americas, the report finds significant differences in longevity perceptions. 

Despite widespread concerns about healthcare and financial security in old age, many respondents overrate their preparedness for these risks.  

The report identifies a strong role for insurers alongside family and government in addressing longevity-related challenges.

Jad Ariss, managing director of the Geneva Association, emphasised that insurers are well-positioned to help people navigate longer lives, but doing so will require industry-wide innovation and collaboration with policymakers.

Report author Adrita Bhattacharya-Craven noted that whilst people acknowledge the risks of living longer, turning awareness into action remains a challenge. 

She stressed the need for insurers to move beyond traditional products and focus on broader solutions that address risks such as outliving savings, losing physical independence, or adapting to changing work patterns.