Longevity and Healthy Ageing

The ageing of the global population is one of the most significant trends of our time. This demographic shift intersects with a broader set of socio-economic factors, including an evolving healthcare, social isolation, the availability of caregivers, and financial planning. With life expectancy more than doubling since the 1870s to over 70 years today - driven by technological and medical advances - society must now address the complexities presented by an ageing population.

Considering this, Generali recently issued a research report on the latest innovation and market trends in longevity and AgeTech, developed with Dealroom.co - a leading market intelligence platform and data provider on global startup ecosystems - and Speedinvest – a prominent Venture Capital fund in Europe.

The report covers two main areas:

• Healthy Ageing: technologies aimed at extending lifespan and improving the quality of life, ranging from biotech innovations to personalized health tools to delay ageing and age-related diseases.
• Silver Tech: this includes Silver Health and Silver Economy. The former focuses on tools and services for the health needs of older adults, mainly in care and prevention, while the latter targets products and services for the ageing population, from health and wellness to financial services, housing, and lifestyle enhancements (including the retirement protection gap).

By 2050, individuals aged 55 and older will represent 45% of the population, a significant increase from 28% in 2001. This change is due to longer lifespans and lower birth rates, creating a society with a higher proportion of older adults.

As a result, there will be an increased need for services that ensure good living standards, caregiving, and management of age-related diseases. By 2042, it is projected that 37% of Europe’s workforce will be aged 50 or older, adding further pressure on public pension funds, social security spending, and overall productivity.

While life expectancy is rising, the time spent in poor health has increased by a decade, largely due to chronic diseases. Common non-communicable diseases (NCDs, which are not transmissible directly from one person to another) in older adults include Alzheimer’s, Parkinson’s, rheumatoid arthritis, cardiovascular diseases, macular degeneration, chronic respiratory diseases, cancer, and diabetes.

In Europe, 37% of individuals aged 65 and over have multiple chronic conditions. Chronic diseases account for 9 out of 10 deaths in the EU and are estimated to cost €700 billion annually, comprising up to 80% of all healthcare spending. Addressing chronic disease through preventive care, early intervention, and better management is crucial to controlling healthcare costs.

We are currently experiencing the largest intergenerational wealth transfer in history, impacting all industries - including insurance. According to a recent study conducted by Capgemini, approximately 40% of the largest life insurers' assets under management (around $7.8 trillion) are owned by policyholders aged 65 and over, and by 2040 such assets are poised to be transferred to younger beneficiaries.

As this trend is already in action, it requires insurers to:

• create comprehensive ageing-well solutions for customers aged 65 and more, focusing on health and financial support,
• build trust to become the preferred partner for financial planning and ageing-well needs, while actively engaging younger beneficiaries.

The rise of technology-driven, value-added services is essential for enhancing customer experience and fostering healthy ageing. Services such as wellness programmes, telemedicine, taxation advice, estate planning, and quality-of-life support are becoming increasingly important.

Partnering with startups can help insurers and other stakeholders provide such services to as many people as possible. In this context, Generali has partnered with Sanofi, Capgemini, and Orange to create Future4Care, a joint venture launched as a start-up accelerator programme to fast-track the development of concrete healthcare solutions and make them available to the market for the benefit of patients and the entire sector.

Healthy ageing startups in Europe have already raised $460 million this year, projected to surpass the previous year's figures. The sector has grown faster than overall venture capital funding and the rest of the health tech industry over the last five years.

Drug discovery and therapeutics for age-related diseases remain the most funded segment, with strong growth in nutrition and supplements, preventative health, and emergency detection.

Addressing chronic disease through preventive care, early intervention, and better management is key to controlling healthcare costs. By 2050, the EU is projected to have 38.1 million people in need of care, with demand already exceeding the capacity of care workers and facilities.

The global retirement protection gap - the shortfall between needed and actual retirement income -is projected to grow exponentially, potentially reaching $400 trillion by 2050. Ensuring quality of life after retirement requires an increased adoption of savings and life insurance products to bridge this gap. The top need post-retirement is maintaining the current standard of living, which will be critical as the population ages.

In conclusion, addressing the issues raised by the ageing population requires a multi-faceted approach, incorporating technological innovation, comprehensive financial planning, and a strong focus on healthcare.

Discover more in the “Longevity & Healthy Ageing” report by Generali, Speedinvest and Dealroom.co: