Preparing today for a healthier tomorrow
AIA’s ‘Rethink Healthy’ promotes a holistic, sustainable approach to close the gap between lifespan and healthspan
Population ageing is one of the biggest challenges facing the world today. That profound demographic shift presents health, social and economic questions, foremost among them how to promote, support and manage healthy ageing.
“While life expectancy has grown remarkably over the decades, especially in Asia, healthspan lags behind lifespan,” said Alger Fung, CEO of AIA Hong Kong and Macau, during a keynote speech at the 30th East Asian Insurance Congress (EAIC) in Hong Kong on Friday.
Fung noted that AIA is at the forefront of developing innovative initiatives to help people close the gap. “We are committed to enhancing the health of our customers, to help them live healthier, longer and better lives – a benefit to customers, our business and society at large, which is also our brand promise.”
Fung highlighted the challenges and opportunities society faces with an ageing population. “By 2030, one in every six people globally will be over 60. In Asia, this ratio will be one in four by 2050,” he said, noting that the health burdens associated with an ageing population are becoming harder to ignore as demographic shifts correspond to the rising prevalence of non-communicable diseases (NCDs).
These diseases, including cardiovascular, neurodegenerative, metabolic and cancer, have a major impact on healthcare costs everywhere, including Hong Kong. “Nearly one-third of the city’s population suffers from chronic health conditions, a significant driver of healthcare costs. With medical inflation averaging around 8 per cent per annum, the financial implications are substantial,” Fung said, adding that the global cost of treating these diseases is expected to reach US$30 trillion by 2030.
On the positive side, Asia’s economic development has fuelled substantial wealth creation and a growing middle class. By 2027, the total financial assets in Asia are expected to exceed US$80 trillion, almost double the size of the combined gross domestic product of the US and Europe.
All these factors impact consumer patterns, placing a greater emphasis on healthcare and retirement. “These figures represent a fundamental shift in the social and economic fabric of our societies,” Fung said. “They have profound implications for wealth creation and preservation, and affect the demand for high-quality protection and financial advice.”
With foresight and planning, Fung said the insurance industry has laid out promising paths for closing the gap between living longer and living healthier. “By developing innovative responses to support retirement income, long-term care and health insurance, we enhance our service to communities and support them in preparing for the future.”
The insurance sector takes on substantial risk liabilities, thereby reducing the strain on public welfare systems. At the same time, insurers such as AIA employ expert investment acumen to deliver superior returns and broader access to capital markets through a diversified investment portfolio that optimises the balance between risk and reward.
The overall strategy, Fung stressed, is especially important amid Asia’s generational transfer of wealth. “The long-term nature of the insurance business provides stability and aligns closely with the structural and financial needs of supporting care services for an ageing population.”
Fung urged attendees at the conference to innovate when assisting clients to prepare for a long, healthy retirement. “Data suggests people often underestimate their financial needs and are likely to outlive their assets,” he said.
Hong Kong, despite a mandatory retirement plan, has a retirement gap exceeding HK$2 million (US$257,000) per person, which is compounded by higher healthcare costs and inflation. “That means insurers need to look beyond traditional products to help customers save more and save smarter,” Fung said.
To better support the wealth and health management needs of high-net-worth (HNW) individuals in the region, Fung believes a rethink of service models and delivery approaches is necessary. “To meet clients’ evolving expectations, insurers must collaborate with professional value-added services partners to enhance ecosystem services and curate a more personalised experience,” he said.
In addition, he said insurers can use technology to enhance their products by providing more accessible, predictive and preventive care to customers and create more cost-effective and high-quality care management models beyond the curative approach that is predominant today.
Fung highlights the range of programmes developed by AIA that reflect the insurance provider’s customer-centric strategy and holistic approach to achieving well-being, such as the “Rethink Healthy” initiative. Recently launched in Asia, the plan promotes a more holistic, sustainable approach to achieving a longer lifespan and healthspan in support of the “AIA One Billion” goal to engage a billion people in healthier lifestyles by 2030.
In addition to providing customers with more accessible, affordable and effective healthcare through its Integrated Health Strategy, AIA enhances HNW clients’ retirement readiness with AIA Alta services.
“This approach allows us to engage with customers effectively through a trio of bespoke mental, physical and nutritional health services – AIA Alta Wealth Management Centre, AIA Alta Wellness Haven and AIA Club Alta – that address their needs and pain points,” Fung said, citing the example of AIA’s deep sleep programme for Club Alta members, which benefits memory, manages blood pressure and helps with weight loss.
In his closing remarks, Fung reinforced the role that the insurance industry can play in helping communities to live well and age well. “For a healthier and better tomorrow, we must remain committed to driving positive change, embracing innovation and fulfilling our social responsibilities,” he said.