Swiss Re’s latest sigma study says there is scope to grow the long-term care market (LTC) with more hybrid-type solutions that combine LTC insurance with life, retirement/pension and critical illness products.

Insurers can also develop new products that better suit customer needs, such as immediate-need annuities and short-term care products, said Swiss Re.

The Swiss Re study How will we care? Finding sustainable long-term care solutions for an ageing world says the number of people aged 65 years and above will grow by around 80% to nearly 1 billion over the next 15 years.

However, the reinsurer’s research has found current systems of funding and providing long-term care (LTC) for the elderly are unsustainable.

There is also a widespread misconception that the government will play a leading role as a provider of LTC. Kurt Karl, Swiss Re’s chief economist, said: "The problem is that people underestimate the cost of LTC and overestimate what the state will provide."

Swiss Re therefore proposes an integrated, multi-stakeholder approach – including private insurance – is needed to deliver the full continuum of care.

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It says all stakeholders, including governments, healthcare institutions, care providers and consumers should contribute to what can be a financially sustainable LTC solution.

For example, Swiss Re has suggested private insurers can become investors in care infrastructure and services, and employers can do more to raise awareness of LTC risks.

It added that there also needs to be stronger coordination of the different agents involved in care delivery and greater promotion of healthy-ageing initiatives.

Other options are tax incentives to encourage and support family members to become home carers, and to enable those wishing to continue working to do so either in the formal sector or in social engagement activities.

Technological innovation, which can enable better health monitoring and care coordination, is another element.

Lukas Steinmann, co-author of the report, said: "The different stakeholders and insurers can work together to create an effective and affordable system for LTC."