Singapore is witnessing a rapid rise in its ageing population, with a projected 27% of residents aged 65 and above by 2030. In 2022 residents aged 65 years and above made-up 16.6% of the total resident population in the country. Singapore is currently one of the most rapidly ageing societies in Asia, along with Japan.
The Singaporeans are, however, living longer and leading healthier lives thanks to advancements in healthcare, improved living conditions and greater access to medical treatments. Singapore’s ageing population presents both challenges and opportunities for its insurance industry.
A new report by Capgemini Life Insurance Industry Report 2023 released in October 2023 revealed the city state’s ageing population’s distinct challenges and opportunities. The report also highlighted the growing preference for digital tools, including AI-driven wealth management advice and platforms.
This population presents Singapore’s insurance industry with a unique opportunity and responsibility. Insurers must manage the assets of an ageing policyholder base and ensure a seamless intergenerational wealth transfer.
Policyholders aged 65 and above control a significant portion of insurers’ assets under management. Singapore’s strong preference for digital channels for insurance needs, with 88% of consumers favouring these tools, positions the city-state as a prime candidate for embracing innovative solutions.
Singapore’s readiness for digital solutions also opens up opportunities for insurers to engage in ecosystem partnerships. These collaborations can encompass various services, including healthcare, wellness, travel, leisure, education and social impact. By offering a holistic suite of services, insurers can enhance customer loyalty, drive retention rates and seize cross-selling opportunities.
The Capgemini Life Insurance Industry Report 2023 highlights the importance of adapting to changing demographics and embracing digital transformation. With Singapore’s strong preference for digital tools and solutions, the city-state is well-positioned to address the evolving needs of its older population. M