"We are seeing a generation that is larger, living longer, and arriving at retirement wealthier than we have seen before. With new approaches to product design and delivery, the insurance industry has the opportunity to redefine its relevance to over 65s"
- Paul Murray - Swiss Re Life & Health Reinsurance
A quarter of people in advanced economies will be over 65 by 2050, with this 'silver economy' transforming the customer base of the life insurance sector. Longer lifespans, declining birth rates and rising wealth among retirees are expected to boost demand for financial protection that guarantees income, health and care coverage.
According to Swiss Re’s latest sigma report, these demographic shifts are redefining how insurers will design products in the coming decades. The report highlights that 27% of people in advanced markets are projected to be over 65 by 2050, signalling a major shift from family-oriented income protection to solutions focused on wealth planning and personal care funding.
“The impact of the silver economy on insurers will accelerate, leading to a new phase of innovation,” said Paul Murray, CEO of Swiss Re Life & Health Reinsurance. “We are seeing a generation that is larger, living longer, and arriving at retirement wealthier than we have seen before. With new approaches to product design and delivery, the insurance industry has the opportunity to redefine its relevance to over 65s.”
Across global markets, ageing is accelerating due to lower birth rates and improved longevity. In advanced economies, the number of people aged 65 and above is set to rise by 35% between 2025 and 2050. Japan and South Korea are already leading this demographic trend, with more than 30% of their citizens aged over 65.
Wealth distribution is also shifting sharply toward older generations. In the US, households aged 55 and over hold nearly USD 120 trillion in assets, equivalent to four times the national GDP. This concentration of wealth underscores both their financial strength and the broader challenge of ensuring financial security through longer retirements.
“Longer lifespans will affect both the risk and asset side of the insurance business,” explained Jérôme Jean Haegeli, Swiss Re's group chief economist. “As populations age and people begin to draw down savings, inflation and long-term interest rates may rise, supporting stronger investment returns and profitability for insurers.”
From accumulation to decumulation
Insurers will need to adapt their focus from the accumulation phase of consumers’ financial lives to the decumulation phase. During the accumulation stage, typically covering working years, people build wealth and protect dependents with products such as term life, whole life and universal life insurance. These policies provide financial security against premature death or disability while supporting wealth creation for younger generations.
After retirement, the focus shifts to converting savings into a reliable income. This can include government and employer pensions as well as annuities. Retirees must also ensure access to essential personal care services, such as medical care and long-term nursing.
By 2050, a high-income 65-year-old in advanced markets could expect to live for another 23 years. With fewer pension products offering guaranteed returns, retirees face the risk of outliving their savings despite holding substantial assets. To manage this longevity risk, insurers may expand the range of annuity products available. Risk-sharing pools that integrate mortality, longevity and health coverage are emerging as one way to address these challenges.
Rethinking health and care
The number of people aged 80 and above will grow by 80% in Europe and by more than 120% in North America by 2050. This increase will put pressure on long-term care systems, which already consume over 2% of GDP in advanced economies. In the US, the average private nursing home costs USD 111,000 per year, highlighting the need for sustainable funding models.
Underwriting long-term care remains complex due to the uncertainty and duration of such products. Some insurers have found success by supplementing public programs or combining care coverage with critical illness and life policies. In France, for example, products designed to complement state provision have attracted strong demand. The long-term care market there now includes 1.4 million policyholders and generates more than EUR 500 million in annual premiums. Many offerings are tailored for affordability and distributed through bancassurance networks and digital channels.
Cancer protection for older adults is another growing area. “The median age of cancer diagnosis is 67,” noted the report, “yet most critical illness policies expire before retirement, leaving a protection gap just when the risk becomes highest.” In Thailand and Korea, insurers have introduced cancer-specific policies for seniors, often bundled with health or annuity products. These products help prevent older households from bearing both medical and financial pressures alone.
