Taikang Pushes a New Approach to Insurance and Aging in China
China is aging at a pace that transforms how society works, spends, and plans. A report from WallstreetCN highlights a difficult truth: retirement and long life are becoming the rule, not the exception. At the same time, the number of seniors in China continues rising. By the end of 2024, individuals aged 60 and above reached 310 million, which is 22% of the population. Projections place this group at roughly 30% by 2035. These figures are not just statistics. They are a preview of a new social structure.
Taikang Insurance Group, one of China’s largest financial institutions, believes the solution is more than paperwork and policies. The company refers to its model as “New Life Insurance,” a system that links payments, services, and investments into one connected framework. That structure attempts to offer practical help instead of a simple transaction. Founder Chen Dongsheng calls this a “three-pronged synergy” that expands beyond traditional insurance and supports people as they age.
How the Problem Took Shape
The United Nations’ World Population Prospects report states that life expectancy exceeds 75 years in half of all countries. Longer life means more income is needed after retirement, more healthcare costs, and more long-term planning. It is easy for a young person to picture the next five years but almost impossible to picture the last twenty. At the same time, China’s pension reserves continue to face strain from increased payouts.
To address this, China has developed a personal pension system and tested commercial pension products. The government is building a foundation that encourages insurance companies, real estate developers, healthcare providers, and financial institutions to take part. In that environment, Taikang chose a direct strategy: enter the senior care business itself instead of outsourcing it.
The Shift in the Senior Population
A new perspective on aging is spreading. Japanese media showed individuals aging alone ten years ago. Now, entertainment and research suggest a calmer outlook, where later years can include fitness, leisure, and social strength. Data shows older adults want more than basic needs. A survey by Taikang and AgeClub, which reviewed the habits of 1,500 seniors, found a 17% year-over-year increase in visits to retirement communities in 2022. People want excitement, dignity, and a sense of place.
Senior care communities have different formats. In the United States, the industry includes Active Adult Communities that resemble vacation towns, Nursing Communities for more fragile individuals, and Continuing Care Retirement Communities that extend support as health changes. Japan uses retail-based community hubs where convenience stores help manage daily needs. China’s standout trait is that insurance companies — not only property developers — often lead the development of senior living campuses.
Why Insurance Groups Are Entering Real Estate and Healthcare
Insurance companies control large pools of capital. A retirement community, once operating successfully, can produce steady income and rise in property value. U.S. data from CBRE showed that senior housing delivered an annualized return of 14.6% from 2004 to 2018. Those numbers outperform many types of commercial real estate. Taikang appears to have used this logic early.
Since 2007, Taikang has funded hospitals, retirement projects, and wellness campuses. Its first large senior community pilot gained regulatory approval in 2009. In 2012, the “Happiness Plan,” a long-term annuity linked to physical community access, launched and marked a turning point — insurance payments began to connect to a physical place and a real lifestyle.
The New Life Insurance Model Explained
The “New Life Insurance” model adds a service end to the traditional pairing of liabilities and investments. Liabilities refer to long-term policy obligations. Investments refer to the capital managed by the insurance company. The new third component — services — refers to real hospitals, senior homes, end-of-life care, and wellness programs that clients can use.
Taikang argues this model cures several issues. A low interest-rate economy makes investment returns unpredictable. Building high-return assets such as retirement campuses supports insurance products. Insurance products provide long-term client funding. Healthcare and wellness services increase customer stickiness and sales. Each part fuels the other.
Many major Chinese competitors have waited on the sidelines. Taikang took a harder road by building communities itself, which requires capital and patience. It now operates 47 projects across 37 cities and houses more than 20,000 residents. Its products now include the Longevity Plan, Health Plan, Wealth Plan, and Graceful Aging Plan. More than 300,000 clients participate. Over 20,000 licensed planners sell and manage these offerings.
Lessons From Abroad
History shows that missing timing can destroy dominance. In the United States, life insurers once controlled retirement planning. As investment funds and asset managers expanded, traditional life insurance lost relevance. Premium contributions fell from almost 80% of pension assets in 1950 to under 30% today. Real estate developers and REITs now shape U.S. senior communities instead of insurance companies.
Chen Dongsheng appears determined to avoid that outcome. His book Strategy Determines Everything explains that the window is small. Delay could leave the industry irrelevant or worse — bankrupt. His message is blunt: industries fall when they wait too long.
Why This Matters Beyond Finance
Aging is personal. It is also social. Individuals worry about loneliness, care quality, cost, and dignity. Families worry about distance, responsibility, and emotional weight. A system that combines housing, medical care, and long-term finance is more than a business model. It sets a social tone: aging is not a sentence; it is a stage.
In 2025, Taikang continued to post revenue growth, new business growth, and net profit growth. Its solvency remains strong. The numbers show that the company’s strategy is working — at least for now.
Taikang is telling a Chinese story that can be heard internationally. Time will show whether this formula becomes a blueprint for others. For a country facing a gray future, it may become one of the most defining experiments of this era.
The conversation is not over. But Taikang has planted a flag, and anyone in the insurance industry would be wise to watch where this model goes.