Report cover image

Demographics in Insurance - Thematic Intelligence

Publisher GlobalData
Published Sep 07, 2023
Length 67 Pages
SKU # GBDT18249292

Description

Demographics in Insurance - Thematic Intelligence


Summary

The nature of the demographic impact on companies has two aspects: shifting consumer preferences and population dynamics. Insurance companies will need to adapt to the shifting preferences of Generation Z and cater to an expanding elderly population. Factors such as ESG performance and online capabilities will be vital to building brand loyalty among younger cohorts. Meanwhile, products and services that respond to age-related illnesses will drive winners and losers in health and life insurance segments. Leaders and disruptors in this theme can be characterized as pioneering in areas related to the changing demands of younger generations, such as digitalization, embedded insurance, and ecommerce. They can also be those that are well-positioned to take advantage of the aging population demographics of many major economies via solutions tailored specifically for those in or nearing retirement.

With a greater proportion of the population beyond retirement age, pensions will need to be larger to cover living expenses for a longer period. With the growing pressure on public finances and state pensions, private pension providers will play a massive role in alleviating the financial challenges post-retirement consumers may find themselves facing in the future. Meanwhile, the next decade will see a massive transfer of power and wealth from the departing boomers to young cohorts with very different habits and values. Cerulli Associates estimates that inter-generational wealth transfer could reach $68 trillion within 25 years, with profound consequences for capital markets, the skew of investment portfolios, and corporate values.

Additionally, urbanization has led to a rush to find and own housing within cities. As prices have gone up, many have been priced out of the market and forced into renting. The ensuing decline in homeownership rates has repercussions for the insurance industry in terms of policy uptake. Urbanization also has other implications such as heightened flood risk, emerging themes such as the gig and sharing economies, less healthy lifestyles and increased stress for urban dwellers, and challenges regarding the future of urban mobility.

Scope
  • GlobalData’s 2023 UK Life and Pensions Survey suggests that over 50% of under-55s believe their retirement income will not be sufficient to cover their living expenses.
  • Over three quarters of 18-24-year-olds consider sustainable investment principles important compared to just 32.9% of over-65s as per GlobalData’s 2023 UK Life and Pensions Survey.
  • In England, the average student debt upon repayment was GBP2,690 in 1999-2000. By 2021-22 it had increased 1,578% to GBP45,150.
  • According to GlobalData’s 2022 UK Insurance Consumer Survey, 20.2% of UK term assurance customers purchased the product because they had recently bought a new house. This was also true for 13.3% of income protection customers.
Reasons to Buy
  • Determine how different ideologies of younger consumers will encourage a change in approach for the insurance industry in targeting this cohort.
  • Identify features of insurance for which Generation Z and millennials have a greater preference due to differences in living styles.
  • See how insurtechs and incumbents are adapting strategies to resonate with and market to this demographic.
  • Understand how pension provision needs to change in the face of aging populations.
  • Configure ESG strategies to fit in line with changing customer preferences before the great wealth transfer brings widespread change to investment markets.

Table of Contents

67 Pages
Executive Summary
Players
Thematic Briefing
The current state of the world’s population
The rate of world population growth is slowing
Climate change will become one of the biggest drivers of immigration
The great wealth transfer is underway
Generational profiles
Country demographic profiles
Trends
Technology trends
Macroeconomic trends
Regulatory trends
Industry Analysis
Demographic challenges in insurance
Aging populations and changing roles of generations
A declining middle class and growing inequality
The great wealth transfer will transform the way investments are made
Urban migration and changing urban environments
Timeline
Companies
Sector Scorecards
Life insurance sector scorecard
Who’s who
Thematic screen
Valuation screen
Risk screen
Non-life insurance sector scorecard
Who’s who
Thematic screen
Valuation screen
Risk screen
Glossary
Further Reading
GlobalData reports
Our Thematic Research Methodology
About GlobalData
Contact Us
List of Tables
Table 1: Technology trends
Table 2: Macroeconomic trends
Table 3: Regulatory trends
Table 4: Companies
Table 5: Glossary
Table 6: GlobalData reports
List of Figures
Figure 1: Who are the leading players in the demographics in insurance theme, and where do they sit in the value chain?
Figure 2: A country can be categorized by its popul8ation structure
Figure 3: Asia is currently the world’s biggest population source, but growth in this region is slowing
Figure 4: The rate of population growth peaked in 1962 but has since halved
Figure 5: Large parts of the world are currently experiencing a collapse in the fertility rate
Figure 6: The economic impact of two degrees of warming will be extremely uneven
Figure 7: Intergenerational wealth transfer is expected to reach $68 trillion over the next 25 years
Figure 8: What are the key characteristics of the different demographic cohorts that are alive today?
Figure 9: There are four key types of country demographic profiles
Figure 10: Uptake of private health insurance by age, selected countries, 2023
Figure 11: Over half of under-55s do not think their retirement income will be able to cover their living expenses
Figure 12: Over half of under-55s are concerned the UK government will not be able to pay their state pension
Figure 13: Younger employees are generally more interested in a range of employee benefits
Figure 14: The uptake of smart home devices is strong for younger consumers and generally decreases with age
Figure 15: House price to income ratio (1998=100), selected countries, 1998-2021
Figure 16: The pandemic and cost-of-living crisis have severely increased income inequality in the UK
Figure 17: Uptake of private health insurance by household income, selected countries, 2023
Figure 18: The principles of sustainable investment are far more important to young consumers than to old
Figure 19: Global urban and rural populations (millions), 1950-2050
Figure 20: Homeowners usually have a considerably greater uptake of home insurance than renters
Figure 21: Renters opt not to purchase home insurance for a variety of reasons
Figure 22: Millennials and Generation Z are more considerably likely to take up work in the gig economy
Figure 23: The demographics in insurance story
Figure 24: Who does what in the life insurance space?
Figure 25: Thematic screen - Life insurance sector scorecard
Figure 26: Valuation screen - Life insurance sector scorecard
Figure 27: Risk screen - Life insurance sector scorecard
Figure 28: Who does what in the non-life insurance space?
Figure 29: Thematic screen - Non-life insurance sector scorecard
Figure 30: Valuation screen - Non-life insurance sector scorecard
Figure 31: Risk screen - Non-life insurance sector scorecard
Figure 32: Our five-step approach for generating a sector scorecard

Pricing

Currency Rates
How Do Licenses Work?

How Do Licenses Work?

The primary function of a report license is to define how many people within a company are authorized to use the purchased report. This is separate to how a report might be delivered. Unless specifically identified otherwise, the purchase option is Single User. Below is a helpful description of that license, along with a sampling of others most commonly offered.

  • This license allows only one user to have access to and to use/read the report. It is not one user at a time or one user group; it is an individual who will be reading and utilizing the report.

  • This license allows for the entire purchasing company to read and use the report. This is the license level that would allow for a report to be placed on an internal company shared drive for access by all employees of that direct company. This license does not extend to parent or sister company use.

  • This license is designed to allow an entire department within a company full access to a report. The departmental license is a great option for companies that have more than one location and the department is spread out all over the country/world

  • This license is for companies that have one location where they want the report to be accessible by all employees within that physical location.

  • This is the most flexible of the licensing options. Some publishers will allow you to get a license for a preset number of people (typically 5). These licenses are ideal for small work groups.

License options are at the discretion of each publisher. As such, not all licenses indicated above are available for every product. If you are uncertain of the best license for your needs or would like a license that is not proactively available, please contact us and we will be happy to assist.

Request A Sample
Head shot

Questions or Comments?

Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
Chat Now
Contact Us