A new survey from RGA and the Society of Actuaries (SOA) Research Institute reveals crucial insights into Taiwan's retirement landscape, highlighting the need for insurers to adapt to digital trends, address long-term care gaps, and engage younger consumers to navigate the challenges of a rapidly aging society.
Taiwan's transition into a super-aged society is reshaping every aspect of its market, particularly in retirement planning and financial security.
A 2024 joint consumer survey by the Society of Actuaries (SOA) Research Institute and RGA, "Retirement Readiness in Taiwan: Financial Security and Risk Perceptions," provides crucial insights into Taiwan's retirement readiness landscape. The results are based on a survey of 750 Taiwanese respondents across three age groups (prime age workers - ages 30-45; pre-retirees - ages 46-59; and retirees - ages 60-75) focusing on financial awareness, risk perceptions, retirement planning and income sources.
The Taiwanese government is proactively addressing the transition to a super-aged society (i.e., more than 20% of the population aged 65 and older) through a multi-pronged approach called Long-Term Care 3.0. This initiative includes strengthening long-term care (LTC) options, promoting older worker employment, fostering intergenerational collaboration, and leveraging technology for improved healthcare and caregiving. Private insurers will also play a key role in providing supplemental coverage and financial security to the country’s aging population.
This article examines three key findings from the RGA/SOA report and proposes strategies for Taiwanese insurers to address emerging challenges and opportunities.
The RGA/SOA survey reveals a significant shift toward digital and personalized channels for retirement planning and financial product research. Mobile app use has more than doubled, from 9% to 19%, while reliance on financial advisors and insurance agents has surged from 18% to 31%.
While digital platforms gain traction, traditional media channels maintain relevance. Internet and financial websites saw a modest increase, from 11% to 14%, and the influence of family, friends, and co-workers remained stable. These results suggest individuals are diversifying their information sources, combining digital tools with personal connections.
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The Society of Actuaries (SOA) and Reinsurance Group of America, Incorporated (NYSE: RGA) jointly commissioned a Greater Asia research project to study the current state and future opportunity of the retirement market in Taiwan and Japan.
The increasing digital literacy among consumers, including older demographics, presents a significant opportunity for insurers. To capitalize, insurers should consider:
Healthcare costs and LTC remain top concerns for Taiwanese across all age groups. The survey indicates a widespread worry about covering medical expenses beyond social insurance provisions. Concerns about inflation, chronic illness, and elder care needs are also on the rise, pointing to increasing financial vulnerability. While the Taiwanese government is also focused on this area, even well-regarded national insurance schemes can face budgetary constraints, a declining healthcare workforce, and access issues for specific populations.
Despite high awareness of potential LTC needs among Taiwanese, ownership of related private insurance products remains low. Only about 10% of the elderly population is covered by LTC products, indicating a significant gap between perceived needs and actual financial protection.
A reinsurance partner can help insurers evaluate the landscape, develop strategy, create a range of solutions, and move more quickly with confidence.
While younger respondents show increased awareness of the need for financial planning, they often lag in taking concrete action. Many younger working-age individuals recognize the importance of insurance products but feel like they cannot afford them. Despite pricing concerns, this younger demographic demonstrates high proficiency in using digital channels for purchasing decisions, presenting a unique opportunity for insurers.
Taiwan must confront the challenges of a super-aged society. By leveraging digital channels, addressing the LTC awareness gap, and engaging younger consumers effectively, insurers can play a crucial role in enhancing the country’s overall retirement readiness. The Taiwanese government’s focus on expanding LTC services for the elderly also spurs opportunities for commercial insurers to invest in more solutions catered to the LTC Market. The key is to develop innovative, flexible products and use digital platforms to reach and educate consumers across all age groups, ultimately contributing to a more financially secure future for Taiwan's aging population.
Full survey results are available from the SOA website. For analysis and further insights on how you can apply the results to your product strategy, contact us.
