Capgemini Warns: Insurers Must Use AI or Collapse Under Aging Population Surge
PARIS, FRANCE 23RD APRIL 2025-The World Life and Health Insurance Report 2024 by Capgemini reveals that the Property and Casualty (P & C) Insurance sector is likely to undergo fundamental changes in the next few years fueled by a surge in the aging population.
By 2050, they predict changes in the operations of insurers to a more modernized approach because of demographic changes and customer demand.
As per the data Capgemini’s research has conducted, in the year 2020 the number of people aged 60 and above stood close to 1 billion people which means they are expected to cross 2.1 billion by the year 2050.
This trend shows insurers would have to rethink their risk calculation models and also provide a lot more prerequisites.
“To survive, insurers need to build models now that are not only age-inclusive, but stand the test of time,”
Said Samantha Chow, Life and Health Insurance Sector Leader at Capgemini.
The survey that the company has recently conducted has shown that the old-style methods of policy formulation and actuarial methods will not be able to function anymore.
It is a challenge for insurance firms to modify their product procedure as a result of increase in life expectancy owing to chronic illness.
“We’re entering a new era where longevity risk is no longer theoretical—it’s immediate and unavoidable,” noted John Berry, CEO of Efma.
When it comes to remaining competitive, insurers will adopt tools such as AI, predictive analytics, and advanced risk modeling.
Capgemini stresses the need to especially focus on policy personalization for older customers.
“Personalization won’t be a luxury. It will be the baseline expectation,” stated Chow.
The report features a warning that without fast innovation and regulatory changes, insurers are at risk of losing profitability and relevance.
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