An Aging Workforce Raises Concerns for Insurers

It probably comes as no surprise that our society, and our workforce, is aging.  With this brings a myriad of changes to various insurance markets.

As stated  in a recent IBA article, “…data from the US Bureau of Labor Statistics reveals (that) one in three Americans aged 65 to 69—and nearly one in five between the ages of 70 and 74—are currently working…’There are several implications,’ says Dr. Steven Weisbart, chief economist with the Insurance Information Institute, signaling that auto insurance, workers compensation and health insurance are likely the biggest concerns for both aging workers and the companies that employ them.”

Auto Insurance

“At least some of these older people will continue driving to work at times when traffic is at its peak…and to the degree that their age is associated with reduced reaction time or other limitations, that would cause them to have more accidents,” he said.

This may impact auto insurance rates for older workers, who are already struggling to make ends meet. It is also concerning for business sectors that deploy older drivers, such as trucking or utilities services.”

Workers’ Compensation

“Businesses with older workers will also have to think of cost-saving measures in terms of workers’ compensation, Weisbart said.

“The data is pretty clear that people who are over 65 tend to have more injuries and illnesses, and when they do get sick, they tend to stay out longer than younger people,” he said. “This would cause workers comp claims to rise.”

Health Insurance

“Of course, health insurance is another concern for older workers. Weisbart noted that even though Americans over 65 qualify for Medicare, Medicare becomes a secondary payer if the individual already has employer-sponsored health insurance.  ‘Most claims would then be sent back to the employer, which would raise costs to employers providing healthcare,’ he said.”

What has been your experience?  Are you part of the aging workforce?  Have you encountered issues with any of the coverages listed above, or even others we missed?  Please share in the comments section below or on our facebook page.

Of course, if you have concerns about insurance as you age, please complete the form below and one of our experts will be in touch with you right away!

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