We’re smarter together

Domenico Savarese

Head of L&H Products Strategy

Zurich, 17th November 2017

Who are the Ageing?

Who pays for them?

2

Ageing: an opportunity

3

Global consumption forecasts by age groups (2015-2030)

25

15-59years old

46

60+ years old

29%

Growth inconsumption

USD 23 trillion

All othergroups

Developed world

China

ChinaNorth

AmericaOthers

75% from higher per-capita spending (vs. population growth)

Changing face of consumer

New con-sumptionpatterns

Tech advance-ments

Evolving geo-politics

Structural industry shifts

4

Who are the ageing?

5

9

Source: Swiss Re Ageing consumer research 2016-17

900

5000hours with consumers

online consumer contacts

9000personal

countries

6Source: Swiss Re Ageing consumer research 2016-17

People’s views on Ageing are varied and often messy

6

7

Vision and

Provision

Source: Swiss Re “Who are the ageing?”, 2017 7

8Source: Swiss Re Ageing consumer research 2016-17

9

Propensity to buy Ageing solutions: Need type trumps objective needShare of respondents who made need-specific preparations for retirement, %

1. Excl. Mental issues and Other due to small sample size; 2. Serious condition incl. patients with serious chronic conditions and disabled personsSource: Swiss Re consumer research 2017

Bequest

Funding

Care

Health

Healthy

Minor cond.

Serious cond. Segment 2Segment 4

Segment 3 Segment 1

Low High

Medium

Health status Need typesIncome levels

10Source: Swiss Re “Who are the ageing?”, 2017

Stay in established environment. Strive to upgrade it

Enjoy lifetime achievements

Continued control and be self-sufficient

Access to all types of information

Reliability of product and certainty of being protected

Owl:“planner”

Eagle:“entrepreneur”

11Source: Swiss Re “Who are the ageing?”, 2017

Continue the good and full life, enjoy high quality of life

Explore the world and seek new experiences

Remain active when retired, create value for society

Delegate time-consuming and complex tasks

Fear trusting the wrong consultant/sales person

Ostrich:“recipient”

12Source: Swiss Re “Who are the ageing?”, 2017

Look forward to have free time, not very aspirational

Prefer hobbies, travel to known destinations

Freeze stability, avoid change

Stay alert to risk of state pension

Fear for young generation and poverty at older age

Toucan:“explorer”

13Source: Swiss Re “Who are the ageing?”, 2017

Don’t think much about ageing: live in the moment

Old age is the new youth: young-at-hearts

Optimistic and idealistic about the future

Can see the truth of growing older without financial plans

Positive about new challenges and meeting new people

14Source: Swiss Re Ageing consumer research 2016-17

What is your ageing profile?

Please vote

1= Planner

2= Entrepreneur

3= Recipient

4= Explorer

15

Source: Swiss Re “Who are the ageing?”, 2017; ANZ “Through Retirement” consumer research, 2016

16

Who pays for ageing?

Source: Swiss Re Ageing consumer research 2016 17Source: Swiss Re “Who pays for ageing?”, 2017

18

Ageing needs are funded by a “wallet” containing individual savings, society support and insurance solutions

Source: Swiss Re analysis based on numerous sources

ESTIMATES

19

Ageing needs are funded by a “wallet” containing individual savings, society support and insurance solutions

ESTIMATES

Source: Swiss Re analysis based on numerous sources

20Source: Swiss Re analysis based on numerous sources (“Who pays for ageing?”, 2017)

21Source: Swiss Re analysis based on numerous sources (“Who pays for ageing?”, 2017)

22Source: Swiss Re analysis based on numerous sources (“Who pays for ageing?”, 2017)

23

Multiple

trendsimpact consumer

needsand funding

sourcesSource: Swiss Re “Who pays for ageing?”, 2017

24

The absolute impact of Ageing cannot be underestimated

5

13

17%

65-79 years old

80+ years old

AfricaFar East Asia

South America

North America

Other Asia

OceaniaEurope

27%

17

9

% o

f p

op

ula

tio

n%

of

po

pu

lati

on

Aged population (absolute figures)

2.5x2050

Total 65+1.5 Bn

2015

Total 65+0.6 Bn

Far East Asia= China, Hong Kong, Japan, South KoreaSource: United Nations (medium fertility scenarios)

2xseniors

but 20% fewer

middle-agedpeople by 2050

25Source: United Nations (medium fertility scenarios)

26

Where is our core customer group going?

1980 2015 2050 1980 2015 2050

1.82.3

-5%2.4

More elderly... ...fewer 30-49 years old

Million individuals

307 -30%

437

205

Source: United Nations (medium fertility scenarios)

27

Underwriting the elderly: yet another inverted pyramid

Source: Swiss Re

Age 35 Age 75

Known

impairment

Suspect

impairment

Apparently

healthy

28Source: University of Toronto (I. Lancashire, G. Hirst); Wikipedia

3,000

4,000

5,000

6,000

7,000

8,000

9,000

25 30 35 40 45 50 55 60 65 70 75 80 85

Word typesRepeated phrase types

0.0

0.5

1.0

1.5

25 30 35 40 45 50 55 60 65 70 75 80 85

Indefinite words, %

Source: Swiss Re

Family structure

Public finances

Consumption

Low-yield world

29

A call to action for us re/insurers:

Be relevant or be bypassed

30

Centre on theageing consumer, accelerate innovation

swissre.com/ageing

31

Legal notice

32

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