Perspectives

Societal Aging’s Cost to Insurance

Impact of aging on non-communicable disease prevalence and health insurance sustainability

Societal aging in Asia-Pacific is expected to accelerate the prevalence of non-communicable diseases, which in turn translates to hiking insurance premiums that threatens the viability of the system.

Rapid economic development in Asia-Pacific (APAC) has resulted in an epidemiological transition, with a decline in infectious diseases and an increase in non-communicable disease (NCDs). To complicate matters, APAC is the fastest aging region in the world, with an expected increase of 200 million elderly people between now and 2030. This demographic shift is expected to lead to an increase in the prevalence of NCDs. The demographic pressure of aging is straining formal and informal social protection systems.

As a significant portion of healthcare is paid out-of-pocket in many parts of Asia, private insurance is likely to be an increasingly important funding source for healthcare. In this publication, we examine the impact of demographic aging on the prevalence of NCDs, and the role of insurance as a funding source. The publication also explores the potential impact on insurance premiums, and innovative approaches for insurers to ensure affordability and sustainability of the healthcare insurance model.

Societal Aging’s Cost to Insurance


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