Aging population sparks new opportunities for GBA insurance industry

Importance of cross-sector collaboration highlighted

Aging population sparks new opportunities for GBA insurance industry

Life & Health

By Roxanne Libatique

Asia’s aging population is reshaping societal needs while creating new prospects for the insurance industry.

At the Asian Financial Forum (AFF) on Jan. 13, 2025, the Hong Kong Insurance Authority (IA) convened a panel discussion titled “Navigating the Silver Economy: Insurance Sector Opportunities in an Aging Society.”

Experts from the insurance sector and academic institutions examined demographic trends, innovative insurance solutions, and strategies for addressing protection gaps, with a particular focus on the Greater Bay Area (GBA).

Role of insurance in meeting aging communities’ demands

Clement Lau, executive director of policy and legislation at the IA and the panel’s moderator, underscored the vital role of insurance in meeting the demands of aging communities.

“By providing the much-needed coverage and support, the insurance sector can play a vital role in alleviating pressing issues faced by the elderly community as well as in driving [the] silver economy,” he said.

The panel explored both local and regional perspectives on the silver economy, highlighting the potential for insurers to collaborate across the GBA, which connects Hong Kong, Macao, and nine cities in Mainland China.

Importance of cross-sector collaboration

Lau emphasised the importance of cross-sector cooperation to enhance the availability of insurance solutions and services across borders.

“With enhanced connectivity within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), there is also immense potential for our insurance industry to collaborate with other sectors to serve the region at large,” he said.

The panellists also discussed ways to promote insurance literacy and retirement planning as part of broader efforts to build more resilient and financially secure communities, particularly as the aging trend accelerates.

China’s insurers innovate to meet pension needs of aging population

In China, insurers are introducing new pension finance solutions to help provide long-term financial stability for the elderly.

Life insurance companies, including China Life Insurance Co Ltd and Guomin Pension & Insurance Co, are at the forefront of this shift, developing products and services that align with national priorities outlined at the 2023 Central Financial Work Conference. The conference identified pension finance as a key area for advancing China’s financial system alongside green and digital finance.

China Life has expanded its offerings to include commercial pension plans, health insurance, and accident coverage, collectively building reserves of approximately 4 trillion yuan (US$562 billion) to address diverse elderly care needs. This expansion aligns with China’s three-pillar pension framework, which includes government pensions, enterprise annuities, and voluntary commercial plans.

Guomin Pension & Insurance Co has also developed a digital platform, the “ZHAO QIAN SUN LI” Personal Retirement Planning Service Platform, which provides financial health assessments and product recommendations. By September 2024, the platform had served more than 100,000 users.

These developments are supported by new State Council guidelines released in September 2024, which call for sustainable growth and modernization in the insurance sector.

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