Introduction to the Demographic Shift and Its Impact on Life Insurance
As the global population ages, demographic changes are prompting a significant transformation in the life insurance sector. Swiss Re, a leading provider of reinsurance, insurance, and risk transfer solutions, highlights this shift in its Sigma 4/2025 report.
The Aging Population and Its Implications
With aging populations and the decline of the demographic bonus in countries like Mexico over the coming decades, the insurance sector—especially life insurance—will experience a shift in focus. Traditional family protection policies will give way to long-term care solutions, as the emphasis moves from protecting income during working years to securing retirement income and well-being.
Swiss Re’s Projections for the Life Insurance Market
According to Swiss Re’s report, factors such as declining birth rates, increased life expectancy, and a faster growth in the number of older adults compared to younger individuals will drive this change in focus.
The Rise of Long-Term Care Insurance
Swiss Re estimates that demographic changes could generate up to $518 billion in additional long-term care premiums over the next ten years. This growth stems from the transition in the life insurance market from protection and accumulation products to long-term care and decumulation solutions.
Adapting to the New Reality
Paul Murray, CEO of Swiss Re Life & Health Reinsurance, stated: “We are witnessing a larger generation living longer and reaching retirement with greater purchasing power than ever before. The insurance industry has the opportunity to redefine its relevance for those over 65.”
In response to these demographic shifts, Swiss Re suggests that insurers should develop more flexible offerings that integrate savings, financial advice, and complementary health services. These adaptations cater to the new reality of single-person households and extended retirement periods.
Growing Demand for Specific Financial, Health, and Well-being Solutions
The aging population will also drive demand for annuity plans, health insurance, and hybrid products that combine protection with investment opportunities.
Understanding the Silver Economy
What is the Silver Economy?
The silver economy refers to economic activities, products, and services designed to meet the needs of individuals aged 50 or older, driven by global demographic aging.
According to World Economic Forum projections, Mexico’s demographic bonus—when there are more people of working age than dependents—began to decline in 2019 and will end by 2040. This shift marks the end of the demographic bonus era and paves the way for the silver economy’s expansion, a market dominated by individuals over 60 with specific financial, health, and well-being needs.
