With increasing urbanisation as well as the urgent need to address and adapt to climate change, the need for sustainable infrastructure is undeniable. It is estimated that the world will need $90 trillion to finance the development of sustainable infrastructure by 2030. This is far beyond the capacity of government and development finance institutions alone and requires considerable mobilisation of private capital. But private capital does not have the same investment horizon or risk appetite.
The IFoA published its latest thematic review report, Equity release: actuaries working in propositions and pricing, on 7 December 2022.
Climate change is a major challenge for society, with the potential to affect all pension schemes in multiple ways. When advising clients, legislation, regulation and other market pressures increasingly require climate change to be considered. But while ESG is a familiar consideration in the investment area, pension scheme actuaries may be less familiar with thinking about climate change when speaking to trustees and employers.
With out-of-pocket expenditure exceeding 60% in some countries across Sub-Saharan Africa, there is value in universal health coverage (UHC) solutions that are equitable, provide quality care and reduce the financial burden on individuals. However, with low levels of healthcare infrastructure, high medical inflation and a predominantly informal sector, there is a question as to whether UHC is even possible for Sub-Saharan African nations.
In April 2022, China's personal pensions system has been officially announced. As the third pillar of the government-supported pensions system, this system has attracted a lot of attention. On 25 November 2022, the Ministry of Human Resources and Social Security of China announced the official implementation of the personal pensions system, which has once again become a hot topic nationwide.