In the paper, “Aging Populations: How Governments and the Insurance Industry Can Work Together,” Woodring cited how this rapid aging trend is already straining healthcare delivery services, shrinking the proportion of workers to retirees, and creating uncertain futures for the most aged cohorts all over the world. However, he added, “This trend is also generating exciting opportunities for the insurance industry: to create innovative financial products aligned with the elderly’s needs; develop effective risk-sharing programs to increase their financial security; and leverage medical and technological advancements to reduce dependency costs and lengthen their period of active, healthy, productive living.”
The RGA research paper was one of six presented today at the conference by the world’s leading insurers and reinsurers on the coming global impact of aging populations upon the industry. The papers, developed by researchers from Assicurazioni Generali, Manulife Financial, Nippon Life, Prudential Financial, RGA, and Samsung Life, covered Canada, China, Germany, Italy, Japan, Korea, and the U.S., and discussed how governments and insurers can work together to address the challenges of funding retirement for older populations.
All of the papers emphasized how governments and the insurance industry can collaborate to address two principal financial challenges of preparing for retirement: saving enough, and then protecting the savings and ensuring they generate sufficient income for increasing lifespans. Improving consumer education, enhancing retirement savings tax incentives, increasing flexibility in employer-sponsored plans, and further expansion and innovation of lifetime income products and of the inflation-indexed long-term bonds to help support such products are necessary, according to the papers.
The International Insurance Society, founded in 1965, is the world’s largest and most prestigious industry organization, with members representing global insurance leaders, international regulatory authorities and worldwide insurance scholars from more than 90 countries. Its mission is to facilitate cross-border exchange of ideas, develop global networks and initiate practical, original research addressing critical industry issues.
Reinsurance Group of America, Incorporated (RGA) is one of the largest global providers of life reinsurance, with operations in Australia, Barbados, Bermuda, Canada, China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Singapore, South Africa, South Korea, Spain, Taiwan, Turkey, the United Arab Emirates, the United Kingdom and the United States. Worldwide, the company has approximately $2.9 trillion of life reinsurance in force and assets of more than $40 billion.