08.07.26
Demographic Change Is Reshaping Life Insurance Markets in US, Canada
by: Taylor Mixides
Morningstar DBRS says demographic changes are reshaping life insurance markets in Canada and the United States, as declining birth rates, longer life expectancy, population aging and immigration alter customer needs. Fewer younger households could reduce demand for traditional life insurance, while growing retiree populations are increasing opportunities for annuities, retirement-income products, wealth management, estate planning and long-term care solutions. Immigration may expand insurers’ customer bases by adding younger, working-age consumers. The agency says demographic shifts are unlikely to affect insurers’ credit profiles immediately, but companies that fail to adapt could face weaker growth, profitability and capital generation. Insurers will need stronger analytics, technology, underwriting and innovative products to manage longevity risks and changing demand.
Read the full article on Reinsurance News