Natural catastrophes still remain the principal cause of destruction on Earth. But these so-called “Acts of God” are not the only risks to which our societies are exposed: there are also “Acts of Man”, “Acts of the Devil” and the constant mutations and interactions between them.
The incident, publicly disclosed in December 2017, occurred when hackers successfully infiltrated the critical safety systems of an unidentified industrial facility, reported to be located in Saudi Arabia.
During her presentation titled “Longevity: recent trends and the role for (re)insurers to meet the challenges” at the SCOR Conference 2017, Daria Ossipova, Head of Health and Longevity R&D at SCOR Global Life, addressed the challenges posed by aging societies.
More and more people are living to 65 and over, and for a long time this has fueled general concerns about associated financial issues. The thinking is that, at this age, people generally stop being net contributors and instead become net receivers of benefits. Moreover, people who live longer tend to see a deterioration in their health, which increases the global cost of care.
However, that vision is no longer completely true. Nowadays people tend to reach retirement age in better health and to be more active – they create companies, they continue to work, they consume. Unfortunately, this assessment is not true for all layers of the population, and varies deeply between countries. Governments and private institutions have to work together to tackle this issue. Governments should create incentives for people to save for retirement. The (re)insurance sector should adapt their products to the new characteristics of older generations.
To achieve these goals, longevity risk needs to be monitored closely. Analyzing longevity trends is a very complex matter. Mortality drivers are evolving over time, and using old information may lead to misleading conclusions. Not all countries make the same progress at the same time. Furthermore, socio-economic conditions create divergence in trends: events such as major economic crises or sudden political transitions may deeply alter the trend, as we have seen with the dramatic fall of life expectancy in Russia following the breakdown of the communist system.
In the presentation below, Daria Ossipova highlights some of the key challenges involved in making a comprehensive estimation of longevity.
Daria OSSIPOVA, Head of Health and Longevity R&D at SCOR Global Life, talks about "Longevity: recent trends and the role for (re)insurers to meet the challenges