Novel Financial Systems Recommendation
TOTAL SCORE: 13
Score
A1 (Feasibility increased by continuance of pandemic): 0
A2 (Necessity increased by covid pandemic): 0
A3 (political viability): 0
B1 (Relevance to the specific goal of increasing HALE by 5 years by 2035): 0
B2 (Relevance to general goal of biomedical healthy life extension): +1
C1 (Market readiness applicability): +1
C2 (Project readiness): +1
C3 (Move to market readiness): +1
D1 (Actionability): +1
D2 (Degree of measurability):+1
D3 (Degree of leveraging cross-sector inputs): +1
D4 (Awareness of international context): +1
D5 (Resourcefulness): +1
D6 (Reorganisation): +1
E (Disruptiveness): +2
F (Dividends - does the recommendation aid in social activity and inclusivity?): +1
Point of Comparison: Neither the Committee’s nor the Government’s preferred strategies include financial industry reform. But it is Aging Analytics Agency’s position that the advancement of FinTech will prove a necessary condition not only for improving the lives of the elderly prior to 2035, but also to eventually making an asset class of Healthy Longevity, a long term interest which ought to be of equal concern to the Committee given the raison d’etre of the Upper House.
RECOMMENDATION SUMMARY
The gap between life expectancy and Health-Adjusted Life Expectancy (HALE) varies widely among developed countries, and could to some extent be seen a gap between nations which have and have not made efforts to embrace the paradigm shift from treatment to Precision Health in response to the Silver Tsunami.
Some countries, upon reaching this inflection point, have taken financial initiatives, while some others have stagnated. Japan for example experienced an economic boom 50 years ago that nearly allowed it to exceed the USA in GDP while its life expectancy nearly overtook the USA, although without an equal increase in its citizens’ healthspan.
This gap had an initial negative impact on Japan’s national economy, which has been stagnating for the past 20 years as a result. Now however Japan’s government is making great efforts in financial engineering to account for this gap.
It should be noted however that they have only succeeded in delaying the collapse of their economy, not fixing the fundamental cause behind it. Japan and its major financial institutions are motivated more than any other nation today in adopting a combination of advancements in biomedicine and advancements in the financial sphere to synergistically avoid stagnation and collapse in the face of this big gap.
However, there are alternative positive scenarios available, which are more likely to be explored by the more progressive, technocracy-driven nations and financial institutions. There are two main scenarios, of how the two megatrends - Advancing Biomedicine and the Silver Tsunami are going to collide.
A range of novel financial institutions that could ride this rising tide and bring about a positive scenario are expected to appear and develop: Longevity-focused venture funds, Longevity-AgeTech banks, Longevity index funds and hedge funds, and even a specialized stock exchange for Longevity-focused companies and financial products.
This industrialisation of Longevity could be considered complete when, under such circumstances, Health Longevity (especially as measured by metrics such as Health-Adjusted Life Expectancy or HALE) can be regarded as an asset class in itself.
To this end we recommend that the UK Government ministers plan for the long term to coordinate the development of a succession of novel financial systems.
Score
A1 (Feasibility increased by continuance of pandemic): 0
A2 (Necessity increased by covid pandemic): 0
A3 (political viability): 0
B1 (Relevance to the specific goal of increasing HALE by 5 years by 2035): 0
B2 (Relevance to general goal of biomedical healthy life extension): +1
C1 (Market readiness applicability): +1
C2 (Project readiness): +1
C3 (Move to market readiness): +1
D1 (Actionability): +1
D2 (Degree of measurability):+1
D3 (Degree of leveraging cross-sector inputs): +1
D4 (Awareness of international context): +1
D5 (Resourcefulness): +1
D6 (Reorganisation): +1
E (Disruptiveness): +2
F (Dividends - does the recommendation aid in social activity and inclusivity?): +1
Point of Comparison: Neither the Committee’s nor the Government’s preferred strategies include financial industry reform. But it is Aging Analytics Agency’s position that the advancement of FinTech will prove a necessary condition not only for improving the lives of the elderly prior to 2035, but also to eventually making an asset class of Healthy Longevity, a long term interest which ought to be of equal concern to the Committee given the raison d’etre of the Upper House.
RECOMMENDATION SUMMARY
The gap between life expectancy and Health-Adjusted Life Expectancy (HALE) varies widely among developed countries, and could to some extent be seen a gap between nations which have and have not made efforts to embrace the paradigm shift from treatment to Precision Health in response to the Silver Tsunami.
Some countries, upon reaching this inflection point, have taken financial initiatives, while some others have stagnated. Japan for example experienced an economic boom 50 years ago that nearly allowed it to exceed the USA in GDP while its life expectancy nearly overtook the USA, although without an equal increase in its citizens’ healthspan.
This gap had an initial negative impact on Japan’s national economy, which has been stagnating for the past 20 years as a result. Now however Japan’s government is making great efforts in financial engineering to account for this gap.
It should be noted however that they have only succeeded in delaying the collapse of their economy, not fixing the fundamental cause behind it. Japan and its major financial institutions are motivated more than any other nation today in adopting a combination of advancements in biomedicine and advancements in the financial sphere to synergistically avoid stagnation and collapse in the face of this big gap.
However, there are alternative positive scenarios available, which are more likely to be explored by the more progressive, technocracy-driven nations and financial institutions. There are two main scenarios, of how the two megatrends - Advancing Biomedicine and the Silver Tsunami are going to collide.
A range of novel financial institutions that could ride this rising tide and bring about a positive scenario are expected to appear and develop: Longevity-focused venture funds, Longevity-AgeTech banks, Longevity index funds and hedge funds, and even a specialized stock exchange for Longevity-focused companies and financial products.
This industrialisation of Longevity could be considered complete when, under such circumstances, Health Longevity (especially as measured by metrics such as Health-Adjusted Life Expectancy or HALE) can be regarded as an asset class in itself.
To this end we recommend that the UK Government ministers plan for the long term to coordinate the development of a succession of novel financial systems.