The demographic shift has been one of the key catalysts for a change in global insurance industry over last several years. The three key trends for life insurers, population shift (age of a pop), urbanization and migration are the driving forces that would necessitate them to re-imagine their service proposition with business model around Culture Different outcomes since different classes may need various types of products.
demographic Ageing Populations and Increased Longevity — A Tale of the Unexpected
Undoubtedly, the aging population is among major long-term demographic trends affecting insurance. The potential impact here is huge for life and health insurance markets all alike.
Life Insurance: aging population that lives longer will drive more appetite for life insurance products. Policy implications include the necessity of creating life-cycle and long post-retirement buffering. This is another reason the insurance industry beginning to offer products for this market, like Long Term Care and Lifetime Benefits Life Annuities.
Health Insurance: The collapse of health insurance under the weight of an aging population Elderly adults often require costly health care and treatments. This makes this part of a pricing model one line on the product for insurers to consider. Second, other potential trend is for supplementary health insurance products that pay you back on services excluded from base medical package.
demographic Megacities have Urbanized
Urbanization – The second demographic trend disrupting the insurance industry is urbanization. From another standpoint — that of a quickly urbanising world with ever greater numbers putting all eggs (and risk) in the megacities basket — it appears very differently.
However, insurers still need to modify risk models in general for urban insurance quirks. This involves not only the resolution to traffic congestion and pollution as well enabling protections for urban population centres from such drastic conditions.
Urbanization: urban areas have separate section-NT-only, uncertain health risks for city residents vs. rural but reference needed (e.g., may be higher or not). Insurers must assist in turning this around by offering products that suit the unique health risks of urban consumers, such increased chances of respiratory issues from pollution-heavy air and strains on mental wellness exacerbated for many living much slower-paced lives.
Going the OTHER Way on ‘Next GLOCAL skill shift’ – part 4: Migration and Workforce in Transition
And if that were not the case, trends in global migration and correspondingly changing workforces are at least two more arguments for insurance to change. The gig economy is also on the rise as people flow over borders, so this presents both a challenge for insurers and an opportunity.
Not just dollar sense, but some of the reasons behinds this trend for why travel insurance or international health insurances. New insurance products for cross border medical care, repatriation costs and political risks faced by the diaspora can replace old under-utilised ones
Published in Gig Economy InsuranceThe gig economy is transforming what we traditionally think of work.
Demographic Implications for Insurers
The nationwidem dé sanitatè saw and addressed some challenges and opportunities that came with the changing demographics of the global insurance industry. In the face of this dynamic landscape, insurers need to be both proactive and adaptable; finding new ways in which they can add value for customers.
Innovative Products– Insurers needs to innovate new products which meets the evolved need of their customer base. This could be developing more insurance products for longer life, or urban perils specifically, gig work world. Here are few ways in which the data will assist them to make product tailoring for particular demographic trends big, AI and many other technical things
This: How do we personalize this to the other demographic groups? This could be accomplished with modular insurance products that enable policyholders to select their coverages based on what they are insuring.
Understand your customers: The demographic landscape, of course is changing at a blistering pace and so it has never been more important to know what makes today’s customer tick. On the part of insurers, much needs to be done in terms of servicing their customers so that people understand what they are buying and how the choices offered work; thereby helping policy holders see that there is residual value for this type o f coverage. But this is 2017 and digital- particularly social media has carved out its corner of Black Friday, ushurting in an era beyond just customer engagement to relationship building.
Conclusion
Hence, the world insurance market is likely to undergo a transformation during future demographic changes unprecedented on history.
As population composition changes, and more dynamic demographic shifts become evident within aging populations (with associated comorbidities), urbanization (which also involves mobility patterns implicitly) as well as trends in migration flows etc., demand will be placed on insurers to build responsive strategies now that can flex as the future reveals itself.
Insurers who observe these emerging mega-trends through a lens of curiosity may not just remain relevant given demands from its marketplace; furthermore they stand to leverage demography altogether, should action it for their benefit at scale. It is not a click of button but are the open leaners, who can sense rapidly listening to customer insights and technology as an enabler doing all that happens in world where we should have picked lessons learnt to do things faster yet find each move loaded with ultra complexity.
