Their Women’s Risks in Life report shows
that longer life expectancy, which has increased by four years in the last two
decades, has resulted in higher and unpredictable costs of care for women in
comparison to men.
Nearly two in three
people aged over 80 are women, who will on average face 19 years of ill health,
and need nearly three years of help carrying out basic tasks.
CII CEO, Sian
Fisher, said: “Women today are left disproportionately exposed to risks that
society is not overtly recognising. This is at the same time as historic
support systems are receding.
“We are moving from
a dependence culture to one of independence, where we will have to be less
reliant on our partners, families, communities and the state, and must take
charge of our own financial welfare. Yet today’s women are simply unprepared
for the risks that they will face in life.
“This is not just a
women’s issue, it is a wider risk for society because if we don’t address it
now, we will face a huge burden of care that we will not be able to sustain.”
It was also found
that while women are more likely to have savings products, on average they
accumulate five times less into their pension pots than the average man.
Despite the
increasing likelihood that women will require expensive care in old age, it was
found that 55% aged 30-39 have not thought how they will pay for this.
In addition, four
in 10 of this age group were unaware of the government’s plans to cap care
costs, and one in 10 thought that all care was covered by the state.
The Association of
British Insurers (ABI), director general, Huw Evans, said: “This report is
genuinely shocking in highlighting the significantly greater risks women face
than their male counterparts.
“This should be a
call to action for government and the financial services sector alike to find
meaningful and lasting solutions to the challenges women still face.”
The report suggests
that the insurance industry should:
•Educate and raise
awareness of the risks of not planning
•Provide
equality-oriented solutions
•Engage with
employers to develop new workplace risk solutions
•Improve the image
of the profession, making it more appealing to women
ABI protection
committee member, Johnny Timpson, said: “The industry needs to transform how we
engage and support women appropriately, de-risk and protect their incomes,
commitments, liabilities and lifestyles.
“A comprehensive
strengthening of all women’s safety nets is needed through: access to careers
that build wealth; increased financial literacy; improved product solutions;
plus better infrastructure for raising children with or without a significant
other.”
SOURCE: The Actuary, Chris Seekings
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