Insuring long life: how longevity is reinventing the insurance sector

In Spain, for example, life expectancy is now around 83 years, and the projections suggest that many people could reach or even exceed 100 years in this century. In the USA, the figure sits at 79; in Brazil, 76; and in Mexico, 75. 

This increased longevity presents a series of challenges for economies and society at large, from a rise in chronic diseases and growing pressure on healthcare and pension systems, to the need to ensure a good quality of life for a longer period of time. The insurance industry, as a sector made up of people and for people, has the ability to create unique opportunities in response to the new realities of an aging population, by adapting its products and services through innovative strategies and approaches.

The report Insurance and the Longevity Economy of the Geneva Association highlights the need for insurance companies to evolve from traditional models toward more flexible and personalized solutions that accompany people throughout all stages of their lives. 

This paradigm shift involves offering products that go beyond occasional coverage of specific claims, offering long-term support, accompaniment, and well-being management services. In this regard, insurance companies play a more active role in the lives of their customers, not limiting themselves to act when a claimable event occurs, but rather offering ongoing accompaniment. 

According to this document, “life and health insurance companies play a crucial role in helping people manage financial and health risks. However, traditional insurance products and services must evolve to ensure that periods of health—the number of years in good health—and periods of wealth—time with sufficient financial resources—are better aligned with the increase in life expectancy.”

In this regard, the sector has a huge opportunity window to guarantee the coverage of people’s needs in a time of population aging and generational replacement. Innovative solutions that address the point where health, wealth, and longevity converge “will improve labor productivity, promote more gradual and personalized retirement transitions, promote physical independence as this aging occurs, and complement public assistance systems,” the Geneva Association highlights.

The report The Health of the Future, developed by MAPFRE in collaboration with Accenture, already warned of this need for change toward more comprehensive service models, supported by technological tools and focused on prevention and personalization.

Instead of acting only when illness arises, the new approach of the insurance industry must try to anticipate the problem. Companies are starting to position themselves as active promoters of well-being, supporting their customers in adopting healthy lifestyle habits.

The report published by MAPFRE precisely addresses this idea. It proposes moving from a reactive model to a preventive model, in which insurance companies collaborate with health systems to improve the quality of life of the elderly and reduce the incidence of chronic diseases. Among the initiatives considered are nutritional counseling, remote medical support, and even adapted exercise or emotional assistance programs. This new model adds real value to the customer, reinforcing their link with the insurance company.

“Health is no longer interpreted as a closed cycle in which professionals only act if an illness is identified. In the society in which we live, it is more important than ever to curb the chronification of disease and to act preventively; therefore, insurance companies are making a conscious effort in physical and mental health prevention initiatives,” stated Pedro Díaz Yuste. “At Savia, for example, we offer 360° health services where prevention is one of our three pillars through remote monitoring services, digital health solutions at any time, and tools to manage any day-to-day concerns,” he added.

Longevity is having a high impact on three vertices: economic availability, health, and free time. Consumers will lead ever-changing lifestyles, with high expectations, and will be so focused on navigating an overly complex world that they won’t have the interest or time to engage with, or pay for, anything that doesn’t matter to them. In this context, this demographic sector is asked a clear and constant question: what do we do with these resources? 

Insurance companies play a fundamental role in responding to these scenarios. To this end, they must encourage the business and innovation areas to create a new ecosystem of associated services ranging from travel assistance insurance offers adapted to their type of travel, to new home-related insurance and changes in ways of life. 

In this ecosystem, providers from different industries will interact to create value based on shared data. It will not be a matter of selling isolated products and services but of experiences built by many actors. It is not enough to digitize everything; the insurance industry must maintain a holistic view of a person’s life and offer them care services appropriate to their circumstances.

Population aging represents a challenge for public health and pension systems, whose sustainability is compromised by increased demand for care. In this context, insurance companies have the capacity to complement public services, offering solutions that are more agile and adapted to new needs. 

However, this requires a profound redesign of the products. Policies must adapt to more diverse realities, including non-linear life trajectories, new forms of families, different housing models, and changes in labor regulations. Furthermore, the insurance industry plays a fundamental role in building a more realistic image of aging. 

In short, the longevity revolution demands that the insurance industry evolves rapidly: it is not just a matter of adapting products, but of redefining the role of insurers as players committed to health, prevention, and life support. 

Technological innovation, smart data use, and reimagined coverage models will enable more humane, people-centered solutions. Companies in the sector that embrace this transformation will play a pivotal role in a society that is not only living longer, but also striving to live better.

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