[Becoming an Insurance Insider] 3040 Avoid Insurance... Sharp Increase in Insurance Enrollment Among Those in Their 60s

Declining Demand for Whole Life Insurance Due to Single Life and Low Birthrate
Increasing Interest in Long-term Care Insurance Amid Aging Population and Nuclear Families

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[Asia Economy Reporter Oh Hyungil] The number of middle-aged people subscribing to insurance is decreasing. Over the past 10 years, while insurance subscriptions among the elderly have significantly increased, new subscriptions among people in their 30s and 40s have declined.

On the 9th, Kim Dongkyum, a research fellow at the Korea Insurance Research Institute, stated in the report "Changes in Insurance Product Subscriptions by Generation and Implications," "the decrease in insurance product subscriptions among middle-aged people is bringing changes to the composition of insurance company contracts," adding, "the average age of insurance subscribers increased from 38.3 years in 2010 to 46.0 years in 2019 for individual life insurance, and from 38.0 years to 43.7 years for long-term non-life insurance."

The annual average growth rate of new contracts for individual life insurance products by age group increased for those aged 60 and over (19.8%) and those in their 50s (5.6%), while it decreased for those in their 40s (-3.3%), under 30 (-5.5%), and those in their 30s (-7.2%).

Also, the growth rate of new contracts for long-term non-life insurance products was in the order of 60 and over (20.9%), 50s (9.9%), under 30 (2.6%), 40s (2.5%), and 30s (0.5%).

While health protection products from non-life insurance companies maintain a certain level of new subscriptions among people in their 30s, new subscriptions for health protection products from life insurance companies are stagnating or declining in the 30s age group.

In particular, subscriptions to products that guarantee income or death in the individual life insurance and long-term non-life insurance markets have decreased.

Researcher Kim explained, "Subscriptions to pension insurance, variable insurance, savings insurance, whole life insurance, and term insurance among people in their 30s have significantly decreased compared to the past, causing negative growth in the individual life insurance market," adding, "subscriptions to income protection products for people in their 30s in the long-term non-life insurance market have also significantly decreased compared to 10 years ago."

The decrease in insurance subscriptions among people in their 30s and the increase among the elderly are interpreted as changes in the population eligible for insurance subscription.

Researcher Kim added, "As mortality rates have decreased across all age groups, the need for death protection has lessened compared to the past, while interest in healthy aging and changes in household structure have increased demand for disease insurance and nursing care insurance."

He advised that insurance companies should recognize the need for insurance subscriptions among people in their 30s and 40s or younger while absorbing the insurance demand of the elderly.

Researcher Kim emphasized, "The new generation has higher information accessibility than previous generations, so they can respond sensitively to differentiated features of insurance products provided by companies or the benefits and services they can receive during the insurance product purchase decision process," adding, "the current face-to-face sales centered on agent channels have limitations in establishing contact with the younger generation, so it is necessary to prepare new channel and product strategies that can attract these groups."

This content was produced with the assistance of AI translation services.