FECIF Editorial

As our society ages, we face a defining challenge: ensuring that the systems we build are inclusive and supportive for all citizens, especially those who have spent a lifetime contributing to our nation's prosperity. In Austria, the demographic shift is undeniable. By 2035, more than a quarter of our population will be over the age of 65. As the association representing Austria's independent financial and insurance professionals, AFPA felt a profound responsibility to move beyond assumptions and gather concrete facts about the financial well-being of our seniors.

To that end, we commissioned a comprehensive, nationwide study to understand the realities that Austrians aged 55 and over face when accessing insurance and financial services. The results are not just illuminating; they are a stark call to action for our entire industry and for our nation's policymakers. The message is clear: we are failing to adequately serve a growing and vital part of our population, and we must act now to correct our course.

Our research uncovers a significant and troubling "protection gap." While Austrians are diligent about insuring their property—with over 91% holding household insurance—there is a dramatic shortfall in personal coverage. These are the very policies that provide peace of mind in later life. Consider the numbers:

• Only 3.4% of respondents have long-term care insurance.

• Just 32% have private health insurance.

• A mere 23% have secured funeral insurance.

This is not due to a lack of foresight on the part of our seniors. On the contrary, our study revealed a high level of interest in acquiring these exact forms of coverage. The gap exists because of a market that is perceived as inaccessible and unwelcoming. An overwhelming 74.4% of seniors agreed that the insurance offers available to them are either unsuitable or simply too expensive.

Even more concerning is the pervasive feeling of discrimination. A staggering 70.6%—more than two-thirds of those surveyed—believe that insurance companies discriminate against them purely because of their advanced age. This is an unacceptable situation. Age should be a marker of experience, not a barrier to financial security.

The challenges extend deeply into the realm of financing. As life circumstances change, the need for credit does not simply vanish at retirement. Our study shows that the primary driver for seeking loans in later life is real estate—renovating a home to make it age-appropriate, or purchasing a more suitable property. Yet, here too, seniors face immense hurdles.

The perception of bias is even more pronounced than in the insurance sector. A remarkable 84.2% of respondents report feeling specifically disadvantaged in credit granting due to their age. They are told they are "too old" for a loan, regardless of their actual creditworthiness or financial stability. This practice not only denies individuals the ability to adapt their living situations but also stifles economic activity and personal autonomy.

In the face of these systemic obstacles, our study reinforced one timeless truth: the profound value of trusted, personal advice. In an era of aggressive digitalization, our seniors are sending a clear message. 81.5% prefer to receive personal advice on financial matters rather than researching on their own. They understand the risks of navigating a complex market alone, with 76.5% fearing that they would choose an unsuitable product if they were to purchase insurance online.

This highlights the essential role of AFPA's members—the independent advisors who provide tailored, face-to-face guidance in communities across Austria. Yet, their ability to provide this vital service is being choked by a relentless increase in bureaucracy. Our analysis shows that the administrative workload required to meet regulatory demands is staggering. It takes an advisor 8 hours and 36 minutes of work to process an insurance offering and a shocking 11 hours and 18 minutes for a loan application. Much of this time is spent on back-office compliance, stealing precious hours that should be dedicated to client consultation.

Therefore, on behalf of AFPA, I issue a direct call to action:

1. To the Insurance and Banking Industry: It is time to innovate. We need to develop products that are genuinely designed for the senior market—products that are flexible, fairly priced, and accessible. We must move past outdated risk models that penalize age and instead assess individuals on their true financial standing.
   
   

2. To our Policymakers: We ask you to create a regulatory environment that fosters, rather than hinders, access to financial advice. We must urgently address the excessive bureaucracy that burdens advisors and, in doing so, harms consumers. Balanced regulation is the best form of consumer protection. And: Support private and occupational pension schemes through tax incentives and modern funding models.
   
   

3. To our Members: Your role has never been more critical. The trust you build with your clients is the bedrock of financial security in our communities. AFPA will continue to champion your cause and advocate fiercely for a system that allows you to do what you do best: provide invaluable advice to the people of Austria.

The findings of our study are not a condemnation, but a compass. They point the way toward a more equitable and functional financial market—one that honors our seniors with the dignity and security they have rightfully earned. Let us work together to build it.

As a broker, it is important to me to protect people against existential risks. I see myself as a companion to our clients, whom we advise comprehensively depending on their life situation and provide with the necessary products and services. Why should this no longer be possible just because a client has crossed an arbitrary age threshold? I sincerely hope that policymakers and the business community will soon rethink this!

As chairman of AFPA, I not only criticize age-based discrimination, but also want to highlight the economic dimension. The independent financial advisors and insurance intermediaries we represent aim not only to fulfill a socially important role (comprehensive advice and protection), but also to seize market opportunities. And right now, there is plenty to be done.

Our goal is to create a win-win-win situation:

• Solid protection for older individuals

• A solution to a societal challenge

• Better market opportunities for advisors and intermediaries

This means: To ensure that consumers continue to have access to independent insurance and financial advice in the future, AFPA actively participates in shaping the regulation of the European and Austrian financial markets. A well-functioning financial and insurance market is not only the foundation for a successful future—it is ultimately the best form of consumer protection.

Finally: The problems documented in Austria exist in all member countries of FECIF, as a consequence of Europe’s demographic developments.