Make it your homepage |   E-mail: Subscribe Unsubscribe

Zurich identifies seven cyber risks that threaten systemic shock


Thursday, April 24, 2014
News Making Money

Using demographic changes as a market opportunity

Written by Daan Harmsen, FINANCIAL MANAGER, GEOCAPITAL MICROFINANCE ORGANIZATION

09/12/2012 22:49 (500 Day 07:33 minutes ago)

old-couple.jpg
ADVERTISEMENT

 

The FINANCIAL -- Between 2002 and 2012, Georgia witnessed a 60% increase in the number of people over 75 years old, while the general population grew by less than 3%. This amounts to 108 thousand people, or a city approximately the size of Rustavi. This is mainly caused by an increase in life expectancy: while in 1985-6, the average Georgian could expect to live less than 72 years, life expectancy at birth has reached 74.5 years this year.

Because of advances in health care, and a generally low birth rate (12.9 per thousand people last year, barely higher than the mortality rate), we can expect the elderly population to increase even more, both in absolute numbers and as a percentage of the population. This means that the importance of the elderly as a consumer group will grow.

This is all happening against the backdrop of a change in household composition: whereas before, elderly parents would often live with their adult children, this is changing: more and more older people and their offspring choose to live separately. Many Georgians used to live in so-called “intergenerational households” because of economic necessity: the costs of living separately were simply too high. Now that Georgia’s economy is growing, and people’s incomes have gone up, this is starting to be less of a problem: people can now afford to live separately, and grandparents don’t need to take care of their grandchildren full-time, because parents can often afford child care.

The stereotype of grandparents living with their children, taking care of their grandchildren, and watching television all day, will thus start to become less common. Also, as people become more affluent, retirement will become a more realistic option for the elderly, who often work until a very old age now, just to make ends meet.

The elderly will start to demand housing that fits their needs: they don’t want to climb stairs, and they want living spaces that will continue to serve them, even if they start to experience mobility problems.

Not only do the elderly need appropriate housing, they will also need more (health) care to keep them going, both in the form of regular daily care, and irregular medical procedures. A lot of daily care will be taken out of the hands of adult children, and performed by professional caretakers.

And let’s not forget that the elderly, especially as they got more wealth y, consume more than just housing and care: companies have been mostly focusing on targeting the young consumer, but the elderly will become an important consumer demographic as well.. They too want to have a good time with their friends, attend fun events, or eat at good restaurants. Doing nothing after retiring can be fun for a while, but as my own grandmother put it, “after a few months it gets a bit boring”. Companies need to find ways to cater to retirees with disposable income, who have a lot of time on their hands.

All of this smells like opportunity: life expectancy is increasing, and the population is aging. Fewer elderly people are living with their children, and elderly care is a massive market in the West. If their families no longer take care of them, the elderly need housing and specialty care, health care and entertainment, among other things. Meeting this growing demand could be the opportunity of a lifetime.

 

 

Make Your Comment

Add NewSearchRSS
Only registered users and facebook social network members can write comments!

This text is replaced by the Flash movie.
This text is replaced by the Flash movie.
Politics
“The former Yugoslav Republic of Macedonia”: presidential election and early parliamentary elections

23/04/2014 16:38 (13:44 minutes ago)

The FINANCIAL -- A 14-member delegation of the Parliamentary Assembly of the Council of Europe (PACE), led by Stefan Schennach (Austria, SOC), will travel to “the former Yugoslav Republic of Macedonia” from 25 to 28 April to observe the conduct of the presidential election (2nd round) and the early parliamentary elections, alongside observers from the OSCE’s Parliamentary Assembly and Office for Democratic Institutions and Human Rights (ODIHR), according to PACE.

Read more...
TRAVEL BIZ
American Express Reports First Quarter EPS of $1.33, Up 16 Percent from a Year Ago

19/04/2014 14:24 (4 Day 15:58 minutes ago)

The FINANCIAL -- American Express Company reported first-quarter net income of $1.4 billion, up from $1.3 billion a year ago. Diluted earnings per share rose 16 percent to $1.33, from $1.15 a year ago, according to the American Express Company.

Read more...



World News
Helping Bulgarian farmers to become landowners

19/04/2014 11:39 (4 Day 18:43 minutes ago)

The FINANCIAL -- The EBRD is providing a €5 million to loan to Elana Agrocredit AD to co-finance the development of Bulgaria’s agricultural land market.

The World Bank Supports Small and Medium-sized Businesses in Tunisia

19/04/2014 10:29 (4 Day 19:53 minutes ago)

The FINANCIAL -- The World Bank approved an additional loan for US$100 million for Micro, Small and Medium Enterprises (MSMEs) in Tunisia.

EBRD loans to boost energy efficiency and support competitiveness of Macedonian companies

16/04/2014 16:42 (7 Day 13:40 minutes ago)

The FINANCIAL -- The EBRD has teamed up with Macedonian bank, NLB Tutunska banka, to increase the competitiveness of the Macedonian private sector and to promote energy efficiency in the country with a €6 million financing package, according to EBRD.      

EBRD helps modernise Baltic freight handling

16/04/2014 16:29 (7 Day 13:53 minutes ago)

The FINANCIAL -- A €32.5 million loan from the EBRD to Klaipedos Smelte, the company operating the container terminal at Klaipeda port in Lithuania, helped modernise its freight handling capacities and upgrade the whole Baltics region as a transit hub, according to EBRD.

CityLife
Africans among the most morally opposed to contraception

19/04/2014 08:33 (4 Day 21:49 minutes ago)

csi_2.jpg

The FINANCIAL -- Speaking to bishops from Tanzania last week, Pope Francis praised church workers in Africa “who strive diligently to educate people in the area of sexual responsibility and chastity” with the aim of preventing HIV and AIDS.

TRAVEL BIZ »
PRESS RELEASES »
FINANCIAL »
UKRAINE »
GEORGIA »
WORLD »
BANKS »
BUSINESS »
TECH »
MARKETS »
B SCHOOLS »
SPECIAL REPORTS »

Markets
Major Cloud Service Providers Slash Prices; Threaten Smaller Players’ Existence: IDC Warns

19/04/2014 13:40 (4 Day 16:42 minutes ago)

The FINANCIAL -- In the last week of March, major Cloud Service Providers (CSPs) in Asia dropped their prices for core services dramatically and IDC believes that this will make it very difficult for smaller CSPs to remain in business if they continue to rely on provision of basic, undifferentiated services, according to International Data Corporation (IDC).

Jobs
Philippines: Further reforms to strengthen growth, create more and better jobs

11/04/2014 12:00 (12 Day 18:22 minutes ago)

The FINANCIAL -- The Philippines is likely to remain as one of the fastest growing economies in the East Asia and Pacific region in the next two years.

Oil&Auto
Toyota Takes Out the Trash

23/04/2014 17:10 (13:12 minutes ago)

The FINANCIAL -- Imagine lugging more than 1.9 million trash cans to the curb on trash day. That’s what Toyota Motor Sales, U.S.A., Inc. (TMS) has avoided doing over the last four years. Since 2009, Toyota has reduced or avoided 1.9 million trash cans worth of waste at its sales and logistics facilities across the country, according to Toyota Motor Sales, U.S.A., Inc.

Read more...
INSURANCE
Zurich identifies seven cyber risks that threaten systemic shock

23/04/2014 17:00 (13:22 minutes ago)

The FINANCIAL -- The recently published Zurich Cyber Risk Report, created in collaboration with the international think tank Atlantic Council, argues that cyber-risk management professionals need to look beyond their internal information technology safeguards to interconnected risks which can build up relating to counterparties, outsourced suppliers, supply chains, disruptive technologies, upstream infrastructure and external shocks, according to Zurich Insurance Company.

Read more...






Developed by Aleksandre Chiabrishvili

Design built by Creo Group