Francis BlumbergNORIS 2019: This is our call – Unlocking our potential in a digital society Helsinki, 28 August 2019

The ageing population – who are they and how to address their needs

Ageing: a sizeable opportunity for Scandinavia

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The macro picture of ageing

Today’s traditional consumers; tomorrow’s “new” consumersDenmark, Finland, Iceland, Norway, Sweden

Traditional consumers (People aged 30-49)

1980 2015 2050

Source: United Nations (medium fertility scenarios)

Access a growing, wealthy segment – yours, or your competitors’ consumers

Growth (2015-2050)

1.2% pa

Lifelong relationships?

“New”, ageing consumers (People aged 65+)

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3.3m

7.4m

5.0m

5.9m

7.6m

6.9m

0.2% pa

2.2% 1.8% 1.1%

0.4% 0.2% 0.2%

1.0% 0.9%

0.0% 0.0%

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

4Source: Swiss Re “Who pays for ageing?”, 2018

ESTIMATES

Ageing needs are funded by a sizable “Wallet” from public and private sources1

Society’s support is disappearing – an opportunity for first-mover insurers

Source: Swiss Re “Who pays for ageing?”4

Scandinavian markets and others?Who pays for ageing?

67%

1%

21%

43%

6%41k

28%

43k

15k

73%

7%

1%

Norway

16%

2%

51%

26%

Dev world & China

5%

Poland

25%

5%

10%

41k

58%

1%

United Kingdom

53%

10%

43k

69%

Finland

19%

7%

35%

50%

60%

Iceland

6%

4%

GermanySweden

2%48k

11%

38k16%

56%71%

6%

31%

25%7%

Denmark

7%

N’Lands

10%

45k

54k

70k

Insurance

Savings

Society (family)

Society (state)

Selected markets, per capita USD PPP, 2015

0.1tn 0.4tn 0.05tn 0.04tn 0.00tn 0.09tn 0.9tn 0.06tn 0.2tn 11tn

Source: United Nations (medium fertility scenarios); Swiss Re “Who pays for ageing?”, 2018. Some might not add to 100% because of rounding

PROVISIONAL ESTIMATES

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Open in browser www.slido.com or sli.do

Access code #Ageing

Enter a username, which can be anonymous

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Clear blue ocean for informed insurers

Source: Swiss Re “Who pays for ageing?”; McKinsey

Be relevant or be bypassedA call to action

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29%of global consumption growth come from “the

ageing” in developed world and China

Growing savings

Government policy and longer-term trends point towards

growth in areas complementary to insurers.

Consumer insights

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The ageing consumer – who are they, what do they want, what can they afford?

Lifelongrelevance

Differentiated benefitsProtect later

life: a growing, underserved

consumer segment

Today Tomorrow

Resilient consumers

Risks

Consumers

More sales to a larger segment

Product design

Delivered payouts

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Consumer needs

Risk protection

“Payouts plus”

Desirable products

Creating

Accessing Swiss Re’s consumer-needs research establishes new avenues towards growth in ageing

Online and in person

concept testing(5,000 hours with consumers)

Working life(age 35+)

Pre-retirement(age 50+)

Post-retirement(age 65+55+ in China)

9,000 consumers in 9 markets 10,000 consumers in 5 markets

Focus groups and

individual interviews(1,410 hours with consumers)

Family sessions

(640 hours with consumers)

Online survey for

segmentation(4,500 hours with consumers)

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Source: Swiss Re Ageing consumer research

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We can use the “share of wallet” analysis to map Scandinavian markets’ segments

Source: Swiss Re Ageing consumer research

Higher privatisation = more planners / entrepreneurs

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Working together to solve later life needs

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How solutions can evolve to better serve the growing ageing population

Forward-looking insurers are changing their views and increasingly focus on consumers’ needs

“We protect you from the risk of…” “We listen to consumer needs…”

“Protect yourself from the risk of outliving your

savings”

“Don’t let me go into a care home – keep me independent and as healthy as possible”

“I rely on the state – but I need

backup in case it fails me”

“I’ve done quite well in life, but I’m

worried about my grandkids’ future”

Traditional protection solutions Solutions to solve more real-life needs

“Protect your children’s

inheritance”

“Protect yourself from the risk of

being unable to pay for institutional

care”“Help me make

plans if I reach a stage of cognitive

decline”

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Consumers see services as adding value for ageing propositions

Interests of insurer Interests of consumer

Alignment

Network of relevant providers

Alignment

Increase: Business accumulation

Decrease: Frequency / severity of claims

Increase: Access to relevant products and services

Decrease: Ill health and care requirements

Services in advice, underwriting, purchasing

Services encouraging healthy ageing

Swiss Re provides: insight into consumer preferences, willingness to pay, support for seeking and onboarding partners

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Problem solvedClose the gap between what the state provides

and what my care costs me

Close the gap between what the state provides

and what my care costs me

Stay in my own home / neighborhood for as

long as possible, even if I need care

Strong brand

Targeted distribution

Affordable price

Additional benefits

Addresses Long-term care Senior cancer Live later in your own home

A strong brand and targeted distribution drives successThree tangible client case studies

1.3m policyholders

South Korea

>200Kpolicies/year

France Italy

Far exceeded 1st year’s sales expectations

Source: Fédération Française de l’Assurance, 2016; KIDI, 2017

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At your service

✓ A dedicated ageing strategy with a full-time specialist to deliver it

✓ Solutions support through specialist actuaries, underwriters and claims professionals

✓ Extensive consumer and risk research✓ Support from leading Chief Medical Officers✓ Product frameworks, tested with consumers, insurers

and end users✓ Capacity to test & learn for new innovations

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Open in browser www.slido.com or sli.do

Access code #Ageing

Enter a username, which can be anonymous

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Francis BlumbergNORIS 2019: This is our call – Unlocking our potential in a digital society Helsinki, 28 August 2019

Any questions

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The information and opinions contained in the presentation are provided as at the date of the presentation and are subject to change without notice. Although the information used was taken from reliable sources, Swiss Re does not accept any responsibility for the accuracy or comprehensiveness of the details given. All liability for the accuracy and completeness thereof or for any damage or loss resulting from the use of the information contained in this presentation is expressly excluded. Under no circumstances shall Swiss Re or its Group companies be liable for any financial or consequential loss relating to this presentation.

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