Aging world population will shift P&C insurance industry: Capgemini

The aging global population will shift the insurance industry by 2050, according to a new report from The Capgemini Research Institute. 

By 2050 there will be 26 seniors for every 100 working-age people, up from the 16 today, according to the World Property and Casualty Insurance Report. 

Adam Denninger, global industry leader for insurance at Capgemini, told Digital Insurance, "Eight of the 15 largest insurance markets today will shrink significantly. This is a direct result of demographic decline driving economic decline, and insurance will follow along. Insurance companies that depend on these markets must diversify – or expect a long-term, structural stagnation.

The shift towards less working-age adults will lead to more use of technology and prevention-focused, real-time risk monitoring, according to the report. 

Denninger shared that he was surprised how AI and robotics-based efficiency gains can keep economies – and the insurance industry – afloat. 

"China is a star example here. They have a historically unprecedented demographic problem – their population will shrink massively over the next few decades – but they have a path to growth in commercial line insurance because of the possibility of extensive automation across many of their industries," he said.