Addressing the Challenge of Global Ageing—Funding Issues and Insurance Solutions

Ageing is one of the most significant issues facing societies around the world. Populations are ageing as people live longer and birth rates decline. Although much of the focus on the impact of these demographic changes has been on specific countries, populations are ageing rapidly around the globe.

While the demographic shifts taking place in the world are not new, there is heightened recognition of their global impact. With policymakers, regulators and companies increasingly focused on this issue, this report could not be more timely. Governments, corporations and individuals around the world are already feeling the financial strain of ageing populations. Pension systems around the world are grappling with the impact of increased longevity on pension liabilities. Because of this strain, much of the responsibility for retirement security has been shifting from government and employers to individuals, who will need to save more, work longer and look for new ways to manage the risk they now shoulder.

With its long-term perspective, institutional investment and actuarial experience expertise as well as its financial strength, the insurance industry is well-positioned to be part of the solution to meeting the financial needs of an ageing global population. This report serves as a valuable starting point for what will need to be an ongoing dialogue. It not only highlights the challenges ahead, but also, importantly, outlines potential solutions that will help address this global issue.