Brazil health insurers faced with rapid population ageing

The rapid aging of the Brazilian population likely to lead to major upward pressure on expenses in the country's private health insurance industry.

The country's population is expected to grow continuously until 2047, reaching 233mn people compared to today's 208mn, according to a study from the country's statistics bureau IBGE.

After 2047, the population will gradually decline to 228mn in 2060, the study shows

By 2060, 25.5% of the population is expected to be over 65 years old, up from 9.2% currently.

"The increase in the proportion of the elderly in the plans generates growth in costs and imbalances in the system, since the members of this age group generate more assistance expenses in relation to the others," said Solange Beatriz Palheiro Mendes (pictured), president of the national federation of supplementary health (FenaSaúde).

According to FenaSaúde, a patient under 18 years costs around 1,500 reais (US$400) per year for his health insurance plan, while a person who is 80 years old can generate expenses of up to 19,000 reais per year.

"The elderly suffer more from chronic diseases, such as hypertension and diabetes, which require constant medical care, and from diseases that require more sophisticated and expensive tests," said the FenaSaúde head.

This year has seen a major controversy over price hikes in individual health plans as insurance companies argue above-inflation increases are necessary due to spiraling costs and consumer protection groups accuse the insurers of abusing their clients.