Latin America must face the longevity challenge
Most countries are experiencing a longevity revolution, says Lucie Taleyson, head of the actuarial and marketing department of AXA Group Life Solutions within AXA France – and countries in Latin America need to plan accordingly.
“General improvement of sanitation conditions, enhanced medical technology, and healthier lifestyles all contribute to longer lifespans,” she said.
This increase in life expectancy, combined with relatively low birth and immigration rates, leads to an increase in the proportion of elderly over age 60 and 75, she continued. Ageing is a key issue for the coming decades. The United Nations has projected that in 2050, there will be 3.5 million centenarians over the world – equivalent to the population of Uruguay.
“Any increase in the number of individuals reaching very old age will most likely lead to an automatic increase in the number of elderly people in need for long-term care (dependent elders). Significant individual wealth is needed to cope with the financial requirements of retirement and long-term care.”
AXA considers these trends being both a risk and an opportunity, said Taleyson. This has led AXA to invest significantly in academic research on longevity, long-term care, prevention. These issues are key topics for the AXA Research Fund.
“AXA can also leverage its more than 30 years of business experience in both individual and group long-term care products,” she said.
South America’s population will age dramatic in the near future. As long term care costs are a major threat to both public finances and individual assets, funding long-term care will represent a major and growing challenge, said Taleyson.
“South American countries should prepare by developing innovative, robust solutions. Mutually beneficially public–private partnerships can be set up to boost the development of the long-term care markets with simple, affordable and flexible protection products to cover the population.”
