Novel insurance solution tailored to older lives
As life expectancy rises and populations age, insurers have an opportunity to develop products that address the evolving health needs of older individuals. Hannover Re has supported the development of an insurance solution designed to cover neurodegenerative diseases, reflecting the needs of an aging population.
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Background
With significant increase in longevity in many parts of the world, Hannover Re is looking to partner with and position insurers with product solutions that aim to meet the specific health needs of older customers.
Description of solution
A key concern in later life could be the rising risk of neurodegenerative diseases, often leading to significant care costs at home or in residential settings. To address this, a new insurance product has been introduced in Europe with support from Hannover Re. It pays a lump sum upon diagnosis of a qualifying neurodegenerative disease, provided the condition severely impairs daily living activities. An additional lump sum is paid after a three-year survival period to provide further financial support for the claimant’s complex care needs.
Conditions covered based on loss of autonomy trigger:
- Alzheimer's
- Parkinson’s
- Severe dementia
- ALS
- Multiple sclerosis
The launch of this insurance product demonstrates how insurers can offer benefits that directly address the health concerns of ageing populations. From a distribution perspective, the product is sold to individuals between the ages of 60 and 75, a group likely to be concerned about cognitive health. To maintain a sustainable risk pool, underwriting safeguards are essential, to help ensure that policies are taken out before any diagnosis of a neurodegenerative condition.
Implementation & process considerations
- Launching products for older lives requires robust underwriting to mitigate anti-selection risk. Clear benefit triggers align claim payments with actual care needs. These measures help maintain sustainable premium levels despite the higher risk profile.
- Effective distribution strategies are also key to reaching the right customer base. When developing products for older age groups, insurers should also consider complementary services. Integrating digital tools such as cognitive health apps or smart-home technology can support healthy ageing and adaptive living.
- Different premium payment possibilities can be considered, i.e., either single premium or level premium.
- Other guarantees that can add further value to the product such as a small lump sum for death benefit (burial expenses).
With life expectancy rising, the population over 65 continues to grow, along with demand for treatment of age-related conditions. These medical advances influence product development, pricing, and underwriting for older lives, creating a dynamic environment for insurers.
Hannover Re monitors these medical advances closely and supports clients in designing solutions that stay aligned with evolving medical knowledge while mitigating antiselection risks. We are currently following updates in Alzheimer’s disease and assessing their impact across insurance markets in the Americas and Europe to help keep products attractive, sustainable, and appropriately underwritten.
How Hannover Re can support you
The growing protection gap for older individuals around the world presents an opportunity for insurers to develop products that address their evolving health needs. Hannover Re welcomes the opportunity to collaborate with you on new product solutions that deliver meaningful benefits, and help insurers meet the specific needs of this important and expanding segment of society.
Disclaimer:
The information presented in this case study, as well as in any other descriptions of projects or cooperations, is for general informational purposes only and does not constitute legal advice, regulatory guidance, medical advice, or any form of professional advisory service. To avoid any wording that could be interpreted as implying medical effectiveness, this document must not be understood as containing, asserting, or suggesting any medical efficacy claims. Nothing in this document shall be construed as a legally binding offer to enter into any contract or agreement of any kind. All results, performance indicators, and outcome descriptions reflect the specific conditions and parameters of the referenced project(s) or product launch(es). They are not guarantees, promises, or assurances of comparable or future performance in any other context. No warranty is given – whether express or implied – particularly that comparable or similar results can or will be achieved elsewhere. Any potential success of comparable initiatives critically depends on the lawful and compliant ability to contact policyholders, including the validity of any required consent under the applicable legal framework. All third‑party entities mentioned in this document, including insurtech companies, are independent businesses and operate separately and autonomously from Hannover Re. Their services, solutions, or technologies are neither endorsed nor guaranteed by Hannover Re and are subject to their own terms and conditions, unless explicitly stated otherwise. References to third‑party trademarks or brands are made solely for descriptive purposes and remain the property of their respective owners. No affiliation, sponsorship, approval, or endorsement by those owners is implied. Statements in this document regarding benefits, compliance requirements, risks, risk assessments, or business cases are based on our subjective experience, judgment, or interpretation. They do not replace - and must not be relied upon as a substitute for - independent assessment, verification, or due‑diligence activities by customers or other stakeholders. In particular, all aspects relating to data protection requirements (including but not limited to GDPR considerations) and AI‑related regulatory obligations must be independently assessed, verified, and evaluated by interested parties in light of their own legal and operational frameworks. The use of the terms such as “partner” or “partnered” without further qualification solely indicates that we cooperated on specific activities or exchanges with third parties; it does not imply a legal partnership, joint venture, affiliation, or any form of shared corporate structure. Each party acts independently and on its own behalf. Hannover Re and/or affiliated companies of the Hannover Re Group assume no liability for the accuracy, completeness, or future applicability of the information provided in this document.
