Population ageing is a social and economic opportunity

“The accelerated ageing 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.”

MAPFRE’s vice chairman, Ignacio Baeza, thus framed the challenge during the opening of the conference: “Reimagining Longevity: from risk to opportunity”, organized by MAPFRE and The Geneva Association, the umbrella body that brings together the world’s largest insurers and reinsurers, and which is being held today and tomorrow at the Fundación MAPFRE headquarters in Madrid.

Jad Ariss, Managing Director of The Geneva Association, added in his opening, “Longer lives are a glowing testament to the success of science and public health. However, longevity needs to be not just about living longer, but thriving – physically, mentally and financially – while doing so. This is where the insurance industry can make a significant contribution.”

The conference features renowned experts in aspects related to aging, such as Julia Randell-Khan, director of the Stanford Center for Longevity, and David Sinclair, CEO of the International Longevity Centre.

Insurers, as experts in managing the future, are called upon to play a strategic role in this new environment of extended longevity, both by managing the economic resources that are going to be increasingly necessary to face this augmented life expectancy, and through the provision of services related to the insurance protection of those people who will be able to continue leading active lives for many years after their retirement.

As Baeza explained at the opening of the event, it is expected that “by 2050 the number of people over 65 will be more than double the number of children under 12 years of age, with all that this entails for public pension systems.”

When managed correctly, however, increased longevity can also be a powerful source of economic growth, and the way to make this happen is to redefine the very concept and meaning of aging, in order to make way for a powerful and positive social and economic transformation. Sooner or later, societies and production models are going to have to adapt to this silver revolution. The Silver Economy will comprise “young people”, aged 70, 80 or older, who want to, and who can, continue contributing to their respective societies, consuming all manner of goods and services and enjoying an active life. And we need them to continue doing so, so that they keep on contributing to further economic growth that benefits us all.

With this vision, to help societies adapt to positively manage greater longevity, Fundación MAPFRE’s Ageingnomics Research Center was set up two years ago, and has to date made considerable progress in its study and dissemination of the aging revolution and the implications for society.

MAPFRE is a global insurance company. It is the benchmark insurer in the Spanish market and the largest Spanish multinational insurance group in the world. MAPFRE is the number one insurance group in Latin America and the sixth largest in Europe by Non-Life premium volume. MAPFRE employs almost 32,500 professionals and in 2021, the company’s revenues totaled almost 27.3 billion euros, with net earnings of 765 million euros.

The Geneva Association (GA) is the think tank for the global insurance industry and  membership organisation of insurance and reinsurance CEOs. The Geneva Association has been carrying out its research role for the past 49 years, with the mission to identify and investigate key trends that are likely to shape or impact the insurance industry in the future. The organisation also provides a platform to members and other stakeholders to discuss these trends and its recommendations and promotes a better understanding of the contributions of insurance to building resilient and prosperous economies and societies and thus, a more sustainable world. MAPFRE forms part of the GA Board.