The new report from the Capgemini Research Institute’s World Property and Casualty Insurance revealed how the ageing of the world’s population will transform the industry globally by 2050.
The ageing of the world population in the coming decades implies a major transformation in the workforce, with fewer working-age adults per retired senior. By 2050, the global dependency ratio is expected to rise to 26%, compared with 16% in 2024. This means that for every 100 working-age people, there will be 26 seniors to support, up from today’s 16. Excluding the relatively young population of Africa, the dependency ratio will reach 31%, up from 18%.
This transition has profound implications for consumer behaviour and the structure of the broader economy. As the global population ages, consumer spending habits are expected to shift, focusing more on experiences rather than large, fixed purchases. The report found that 45% of consumers expect to increase their spending on lifestyle enhancements such as travel, luxury goods, and home renovations, while 70% do not plan to buy an additional house or upgrade their current house to a bigger one.
This change in spending habits, combined with trends towards greater urbanisation and technology automation, will significantly impact how P&C insurers serve their customers. For example, auto insurers are expected to transition towards commercial insurance and shared mobility coverage as seniors drive less and rely more on rideshares. Personal property insurance must evolve towards preventive, age-friendly options that address smaller, multi-generational homes. In the workplace, commercial lines must account for demographic-driven automation and altered risk profiles.
To prepare for and adapt to shifting demographics, the report recommends various innovative strategies. These include focusing more on evolving customer behaviours by recalibrating geographic footprints and designing age-sensitive service models tailored to an older population.
Additionally, the report emphasises the need for stronger risk governance through predictive underwriting insights and dynamic portfolio management to better anticipate and respond to emerging risks in an ageing society. All these approaches require a process of continuous evolution, with executives delivering on medium-term actions while boards address long-term strategic questions.
