The perfect storm: Are your clients prepared for the longevity revolution? Agenda The perfect storm Life expectancy past and present Medical advances Life expectancy in future More than ever, a long term business Our solution The blurring line between science and science-fiction The perfect storm Exponential advances in Biotechnology Nanotechnology Robotics and AI Transformative demographic shift as baby boomers enter retirement The law of accelerating returns First life forms took billions of years to evolve First technological steps - sharp edges, fire, the wheel - took tens of thousands of years 19 th century saw more change than in previous 9 centuries The first 20 years of 20 th century saw more change than entire 19 th century The internet did not exist barely a decade ago Rate of progress now doubling every decade Ray Kurzweil, Inventor and Futurist We won't experience 100 years of technological advance in the 21st century; we will witness in the order of years of progress (by today's rate) Life expectancy past and present Historic life expectancy In the 20s a thousand years ago 37 in 1800 Now pushing 80 Life expectancy at birth more than doubled over the last 200 years Life expectancy explained The expected number of life years remaining at a specific age Not just one number Life expectancy at birth vs. age 65 Varies between different countries General vs. insured population Just an average Frequency distribution Assumptions: Male aged 40, non-smoker, best rates. Frequency distribution Assumptions: Male aged 40, non-smoker, best rates. Frequency distribution Assumptions: Male aged 40, non-smoker, best rates. Frequency distribution Assumptions: Male aged 40, non-smoker, best rates. Medical advances Medical advances timeline Modern medicine 420 BC ID smallpox Lung circulation Microscope Vaccination Stethoscope 1 st blood transfusion Germ theory 1895 X-rays 1899 Aspirin 1842 Anesthesia Medical advances timeline Blood types 1901 Discovery of vitamins Blood transfusion Insulin Penicillin Lobotomy Pacemaker & polio vaccine Kidney transplant 1963 Lung and liver transplant 1967 Heart transplant 1953 DNA discovered Medical advances timeline CT scanner 1971 MRI scanner st artificial heart Dolly New cancer drugs Human genome Stem cells from skin cells Robotic surgery st face transplant st artificial life A peek into the future Emerging technologies A few controversial possibilities In our lifetime? Prepare to be amazed! I spend most of my time assuming the world is not ready for the technology revolution that will be happening to them soon Eric Schmidt, Chairman of Google Stem cell technology Growing stem cells in a lab Disease-in-a-dish Dead brain cells? Just replace them Would you like to order a liver, a heart? Nanotechnology Ferry across the blood-brain barrier Creating organic and synthetic nanoparticles Robots in your bloodstream Gotcha! Genetics Human genome project Gene therapy DNA maintenance Personalised treatment Should I buy a pizza or have my genome sequenced today? Telemedicine A one-hour cancer detector on your phone. No seriously How Intel and GE will monitor your grandma Beam me up Dr. Scotty holograms in healthcare Cisco's virtual doctor will see you now. Assistive devices The mouses days are numbered control your laptop with your eyes Speak and I shall obey voice commands for your home appliances Brain-computer interfaces Neurons and computers: they mix! Amanda Boxtel, who has been in a wheelchair for 19 years, gets up and walk across a stage with the help of an exoskeleton. Dave MacCalman, a New Zealand quadriplegic, takes his first steps in more than 30 years. Artificial intelligence They beat us in chess Then they beat us in a quiz game Now they are taking on healthcare The next frontier? IBMs Watson trouncing the competition in Jeopardy The fountain of youth Slowing down aging Reverse and ultimately prevent aging? Homo Evolutis My, what long telomeres you have! Life expectancy in future Exponential increase in life expectancy? The pace of change has accelerated Life expectancy at retirement has probably changed more in the past 10 years than in the previous 100 years See how life expectancy is bound to increase even when taking a conservative, linear view Impact of 1.5% mortality improvement What happens if life expectancy continues to increase at an exponential rate? More than ever a long-term business Changing financial planning landscape Death Saving Disability & illness Financial planning implications Assumed age at death in FNA? Assumed retirement age? Expiry age of risk benefits? How do you provide for living a long but costly life with an illness? How do you ensure sustainable premiums? Changing financial planning landscape Death Saving Disability & illness Longevity Our solutions Some medical advances are to avoid disease Other advances are to aid people with disease Risk of outliving capital applies to both Our solutions Solutions for clients who do not claim Reward for saving and protecting with us Claim event for surviving to age 80 Solutions for clients who claim Point one above, plus Critical illness solution that keeps on paying Disability benefits that protect until age 100 Conclusion Life expectancy has increased significantly Mind-boggling medical advances How much longer are we going to live? Profound implications for financial planning The solution