As people live longer the U.S. Population is getting older, creating an untapped opportunity for insurers. According to a recent Swiss Re Institute Study, the 65+ age group in America has a $3.1 trillion wallet, and the domestic insurance market has captured only 11% of the market.
In order to capitalize on this potential market, the insurance industry needs to re-evaluate how they insure the elderly. At this time, although there are quite a few insurance solutions available, they may not be fully addressing the needs of the aging population. The real challenge is, how can these solutions be tailored to make them more relevant?
For instance, there could be a number of customized approaches for the 65+ demographic including emergency medical, long-term care, and savings “decumulation” support. In short, the industry needs to gain a better understanding and become more customer-centric if they want to both gain new customers and retain existing ones. By doing so, the industry could gain access to this currently underserved market that is ripe for opportunity.
One way to become more customer-centric is to educate the market regarding customized insurance solutions. Since the senior market typically has more time for leisure activities such as reading, a newsletter is a great way to reach out to educate these folks, and to better serve them. It is a win-win situation as the 65+ age group can truly benefit from creative insurance options, while the industry gains new business.
