Issue summary

Mortality improvements and shrinking healthspans are increasing longevity risks, putting increasing pressure on life insurers, individuals and governments around the world.

The word of the week at the World Economic Forum in Davos was polycrisis. Speakers explored the interconnected nature of risk, from inflation to ageing populations, and the role insurers play in building resilience.

Here’s what we heard from António Guterres, United Nations Secretary General; Gita Gopinath, First Deputy Managing Director, International Monetary Fund; Roy Gori, CEO & President, Manulife & Lard Friese, CEO & Chairman of the Executive Board, Aegon.

MAPFRE and The Geneva Association organize a global conference in Madrid on the effects of increased life expectancy

“The accelerated aging of the population pyramid is undoubtedly a great challenge that our societies face in the coming decades, but it also represents a great opportunity in economic and social terms.”

Government-supported social retirement plans (Pillar I) are under extreme financial pressure due increased life expectancies and low fertility rates. Individuals are compelled to provide for themselves a suitable retirement through occupational pensions (Pillar II) and personal savings (Pillar III). The insurance industry can help as it is the only industry that accepts longevity risk as a core business, and is a long-term provider of lifetime annuities—an insurance that a person will not outlive their retirement savings.