Aging in the new age.

Sixty is the new 40. So 70 is the new 50, and so on and so on. Aging today is not what it used to be. Science, medicine, nutrition and other factors have converged to keep people living longer and stronger with high expectations for their latter years. This phenomenon has created a new type of insurance consumer, which will soon be many consumers, because the population swell known as the baby boomers is now entering that 60s demographic. Insurers have their work cut out for them.

And it's not just financial planners who should be preparing for this particular crowd. Active adults in their 60s, 70s and 80s, many of whom may still be on the job, will have a huge impact on employee benefits such as disability and group life, workers' compensation, homeowners and private-passenger automobile insurance. To examine some of the opportunities and challenges insurers should anticipate, we offer this month "Rethinking Retirement," a cover package of five feature articles beginning on page 22.

Although the issue of health care for this population may be the most demanding, that issue flows into auto insurance, because of bodily injury claims, and into workers' compensation, said Stephan Christiansen, director of research for Conning Research & Consulting. "It will, in some cases, disproportionately impact some lines, such as auto and workers' comp, because the), don't have as much ability to control health costs" he said. Also, increased longevity is a particularly dramatic situation for workers' comp, he said.

Beyond appropriate products and underwriting, insurers need to think about the impact on the investment world, Christiansen said. Increased demand for fixed income securities will keep yields down, making it more difficult to get good returns. Additional stress on Social Security, Medicare and federal pension benefits will put pressure on the tax code, which "throws out questions about tax implications for life insurers," he said.

"While everybody talks about demographic changes, those that are planning a few years out and understanding the way some of these changes will take place on the product side and the investment side will do best," Christiansen said.

"Insurers need to keep their high beams on."

Sally Whitney is editor. You may reach her at [phone], Ext. 5340, by writing to A.M. Best Co., Ambest Road, Oldwick, NJ 08858, or by e-mail at [e-mail]. The e-mail address for Best's Review is [e-mail].