According to our findings, the annual cost of elderly healthcare in APAC is expected to increase five-fold from US$500 billion in 2015 to US$2.5 trillion in 2030. Cumulatively, the cost of healthcare given the region’s aging trajectory will amount to US$20 trillion between 2015-2030. Key cost drivers are the increase in healthcare demand from an elderly population, poised to increase 71 percent, as well as medical cost inflation.
These staggering numbers should serve as a call to action for all parties in elderly healthcare ecosystems:
- Governments need to understand how well prepared they and their citizens are to finance healthcare requirements for the elderly.
- Individuals need to carefully consider how well prepared they are to fund their retirement healthcare needs, especially given the limited range of affordable insurance products.
- Insurers are searching for ways to price risk despite uncertainty over future increases in healthcare costs and lifespans.
- Companies seeking to provide the best employee benefits packages may start considering post-retirement offerings, but they need much more information and significantly more products than are currently available.
The divergence in demographics and healthcare models across APAC adds another layer to the complexity as customized solutions will be needed for each country. The healthcare challenges facing APAC are large, urgent, and complex, and will require the collaboration of a broad range of stakeholders to effectively tackle the challenge.