Addressing the Challenge of Global Ageing—Funding Issues

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Addressing the Challenge of Global Ageing—Funding Issues and Insurance Solutions
force and individuals have relied heavily on public pensions and often have too low
savings rates to sustain ever longer periods of retirement.
Population ageing and the trend towards greater individual responsibility for retirement
security open huge business opportunities for insurers. Insurers have extensive expertise
in this area and have developed various tools to secure old-age income. In that sense,
the insurance industry has a unique role to play on how best to help retirees accumulate
assets with limited downside risk and convert those assets to income. They can also be of
assistance to bridge the gap between government pension plans, employer pension plans
and individual retirement plans to help capture and retain assets that will cushion off the
lack of productive income once they retire.
It should not be forgotten that ageing is fundamentally a social issue. Not only should
insurers be involved in the debate on how to reform the pension system, but most
importantly they should raise awareness about global ageing and an efficient management
of longevity risk. It will not only benefit the industry itself but also society in general.
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