Ask an Expert: What do P&C insurers need to know and do about the ageing demographic?

The 2025 World P&C Insurance Report reveals a pivotal truth: the ageing demographic is no longer just a life insurance issue — it’s fundamentally reshaping the P&C insurance landscape.

By 2050, ageing populations will define global economic and social priorities. Using macroeconomic modelling, customer surveys from over 5,000 policyholders across 13 markets (including 350 in Australia), and insights from 273 insurance executives, we found that shifts in age, urban density, consumer priorities, and technology adoption are already transforming risk and insurers need to act now.

In Australia, for example, the dependency ratio (ratio of people who are dependent) is forecast to rise to 39% by 2050, which means that for every 100 working age people, there will be 39 seniors to support.

Urbanisation will approach 90%, concentrating more ageing individuals — and more risk — in densely populated cities. With a life expectancy increase of six years in the last 30 years and a falling birth rate (1.49), we’re entering an era where demand for age-in-place living (people living at home), smart homes, and health-adjacent services is growing.

With a life expectancy increase of six years in the last 30 years and a falling birth rate (1.49), we’re entering an era where demand for age-in-place living (people living at home), smart homes, and health-adjacent services is growing.

These shifts are changing the nature of property and liability exposures. Personal P&C insurance premiums in Australia are projected to grow at a CAGR of 4.8%, and commercial lines at 6.2%, outpacing the global average.

At the same time, ownership patterns are evolving, driven by institutional landlords and gig-based lifestyles, requiring insurers to shift from pure risk transfer to resilience-focused, prevention-led models.

From a risk perspective, we identified three critical evolutions:

1. Dispersed risks are becoming concentrated, particularly in urban areas vulnerable to natural catastrophes.
2. Tangible risks are shifting to intangible ones, including smart tech failures and service-based liabilities.
3. Isolated risks are becoming interconnected, where a smart home glitch can lead to cascading property, cyber, and financial losses.

Australian insurers recognise this shift. So, what can they do now?

1. Reassess portfolios with demographic sensitivity
   Understand which lines and geographies are most exposed to ageing population dynamics. Begin adjusting underwriting, pricing, and product design accordingly.
2. Build data-driven, ecosystem-led capabilities
   Invest in real-time analytics and form strategic partnerships with smart home developers, healthcare providers and local governments to support prevention-first models.
3. Modernise personal lines for ageing in place
   Develop age-friendly, climate-resilient cover that reflects new consumer behaviour, i.e. less ownership, more experience-driven living. Consider embedded insurance and modular protection solutions for smart homes and devices.
4. Prepare for emerging liability and cyber risks

As older consumers adopt connected devices and robotic assistants, liability exposures multiply. Insurers must prepare to allocate responsibility across complex systems and develop frameworks for AI, E&O (Errors and Omissions liability insurance), cyber convergence and product liability.

The ageing demographic is not a future trend. It’s an active force reshaping where and how people live, work and age. That means now is the time for P&C insurers to evolve their strategies, capabilities, and offerings.

Attributable to Pranav Shivram (left) Senior Manager, and Kiran Boosam, Global Portfolio Leader for Insurance, Capgemini.

Have a question? Ask an Expert here