This Week in Insurance: Singaporeans Lag on Care Planning, AI Reshapes Workforce, Japan Quake Losses Limited

Between July 27 and July 31, 2026, the global insurance sector saw an increased focus on retirement and long-term care preparedness, artificial intelligence (AI)-driven workforce transformation, and key regional market developments.

Singaporeans Unprepared for Long-Term Care Needs

Despite an aging population, long-term care planning remains surprisingly low among Singaporeans:

• Low Preparedness: According to the AIA Longevity Study (published July 23), only 19% of respondents understand and have actively planned for their future care needs.

• Funding Expectations:

  • 52% plan to rely heavily on government schemes.

  • 23% anticipate using private insurance.

• Longevity Concerns: Over half of Singaporeans view living longer as a financial concern rather than an opportunity.

4 Million Australians Ignore Superannuation Performance

A survey of 1,010 respondents conducted by Finder revealed widespread inaction regarding retirement savings in Australia:

• Never Reviewed: 19% of Australians (equivalent to nearly 4 million people) have never checked or compared their superannuation fund’s performance.

• Out of Date: 16% last reviewed their fund over a year ago.

• Active Managers: Only 26% checked their fund in the past three months, while 22% reviewed it within the last year.

• No Fund: Around 18% stated they do not hold a superannuation account.

AI and Automation Drive Workforce Transformation

The integration of artificial intelligence continues to reshape the industry:

• Workforce Impact: GlobalData reports that nearly half of financial institutions expect automation to replace over 25% of their workforce.

• Industry Moves: The report follows news that Allianz Partners is preparing to cut up to 1,800 jobs while accelerating its deployment of AI.

• Operational Gains: Insurers are increasingly leveraging AI to reduce operational costs, speed up processing times, and mitigate ongoing labor shortages.

Regional Developments: Hong Kong & Japan

Mainland Inflows Lower Hong Kong Office Vacancies

• Demand Surge: A major increase in office leasing by mainland Chinese insurance and wealth management firms has lowered Grade A office vacancy rates in Tsimshatsui, Hong Kong down to 6.7% at the end of June 2026, according to real estate consultancy JLL.

Japan Earthquake Insured Losses Expected to Remain Contained

• Magnitude 7.1 Tremor: On July 28, 2026, a strong earthquake struck Japan. Reinsurance brokerage Howden Re noted that the fault mechanics resemble the 2016 Kumamoto event, likely tied to the southern Hinagu/Yatsushiro fault system.

• Financial Impact: Total insured financial losses are expected to remain well below the 2016 Kumamoto earthquake and close to the levels seen during the 2024 Noto earthquake, assuming no major aftershocks cause additional structural damage.