Close Menu
    What's Hot

    Editor’s Letter – Volume 4, Issue 5, May 2025

    14 May 2025

    New Data Shows the Extent to Which American Seniors Are Missing Out by Lapsing or Surrendering their Life Insurance Policy

    14 May 2025

    Buy-Ins To Buy-Outs Appear Stalled As Deal Complexity, Administration Resources Pose Obstacles

    14 May 2025
    Facebook X (Twitter) Instagram
    Instagram LinkedIn X (Twitter)
    Life Risk News
    • Home
    • Features

      New Data Shows the Extent to Which American Seniors Are Missing Out by Lapsing or Surrendering their Life Insurance Policy

      14 May 2025

      Buy-Ins To Buy-Outs Appear Stalled As Deal Complexity, Administration Resources Pose Obstacles

      14 May 2025

      Is Servicing an Overlooked Source of Life Settlement Alpha?

      14 May 2025

      Q&A: Shelly Beard, Managing Director, WTW

      14 May 2025

      Longevity Tech to Emerge as Distinct Sub-Sector of Venture Capital Market?

      14 May 2025
    • Commentary

      UK Life Insurers to Benefit from Robust Bulk Annuity Market in 2025

      14 May 2025

      The Power of Uncorrelated Diversification During Market Volatility

      14 May 2025

      Overseeing BPA Growth Safely

      14 May 2025

      Could Climate Change Cause the Buy-In Market To Collapse?

      10 April 2025

      ICS vs Solvency II: Comparing Risk Corrections for Illiquid Liabilities

      10 April 2025
    • Events
    • Magazine
    • News

      Life Insurance Settlement Association Publishes Latest Market Data Collection Survey Results

      13 May 2025

      UK Aggregate Defined Benefit Pension Fund Surplus Down Again in April

      12 May 2025

      Monument Re Transfers Greycastle Portfolio to RGA

      12 May 2025

      Cancer Research UK Pension Scheme Completes Bulk Purchase Annuity Buy-In With Standard Life

      12 May 2025

      AQA Education Completes Bulk Purchase Annuity Buy-In With Rothesay

      12 May 2025
    Subscribe
    Life Risk News
    Home » Is Education the Primary Driver of Life Expectancy?

    Is Education the Primary Driver of Life Expectancy?

    Features 14 June 2024Aaron WoolnerBy Aaron Woolner
    Twitter LinkedIn Email
    Share
    Twitter LinkedIn Email

    The UK’s Institute and Faculty of Actuaries includes data from as far back as 1825 when calculating its life expectancy tables. Fundamental to those estimations is the importance of the correlation between income and life expectancy.   

    The effects of this relationship are still apparent today. Research by the McKinsey Global Institute shows that the GDP per capita in the Polish IT hub Wroclaw increased from $23,000 in 2000 to $55,000 two decades later. 

    Wroclaw’s citizens saw their average life expectancy increase by 4.9 years in tandem with the influx of high paying jobs from tech giants such as Alphabet and IBM over the same period. 

    A change has occurred in the key drivers of living a longer, healthier life says Steve Prince, President of the Canadian Institute of Actuaries (CIA).  

    “Previous studies said that wealth was the major driver. But recent studies say that education is now a bigger factor than wealth,” said Prince.  

    Prince’s comments followed the publication of the CIA’s Education and Longevity insight by Shantel Aris, Peter Gorham, and Jie Ji, in March this year. The paper looked at a literature review by actuary Robert Brown, on behalf of the institute.  

    While wealth has historically been believed to be the primary driver of life expectancy and longevity, the research review by the CIA showed that it is increasingly likely that educational attainment is the primary driver of differences in both wealth and longevity.  

    The studies, which were examined by the CIA, produced consistent results according to Aris, Head of Longevity Experience Studies at Club Vita – the more education people have, the longer they live. 

    “The studies have brought forward the thinking that now education is a primary driver for both wealth and longevity,” she says.   

    “One of the challenges for the insurance industry is how to incorporate this research into life expectancy tables. At the moment education data is collected at an aggregate, not an individual, level by the industry.”  

    Aris says that while the insurance industry currently relies on postcodes as a proxy form of data for wealth this doesn’t allow for any degree of granularity over the level of education that an individual has.  

    “We work with postal code indicators and in those measures there is some element of the educational attainment of that area.  But on an individual basis the datasets don’t have an indicator that this person achieved a university degree versus a person that didn’t complete high school.”  

    Aris says that while on an individual level education is not being used vary widely by the insurance industry it is being incorporated more and more at an aggregate level.” 

    “There’s an increasing amount of research into the idea that education is a primary driver of longevity,” she says.  

    But why is education potentially a better proxy for life expectancy than wealth? Smoking is the single most important factor. According to the CIA paper, smoking rates were almost four times higher among Canadians who didn’t complete high school compared with university graduates. 

    The same trend was apparent outside of Canada with the CIA research saying that smoking explains half of the recent widening of the educational difference in life expectancy in several European countries, with the trend especially notable for women.  

    “This is not a purely Canadian phenomenon. In our paper, we saw a significant gap between the life expectancy of the lowest and highest education groups which is consistent across multiple countries.  

    “There are differences between countries over what is classified as low versus high education but it was consistent that we saw a difference across multiple countries,” Aris says.   

    Strikingly, even among smokers, there are different life expectancy outcomes depending on the education level of the cigarette user. Aris says that this differential is potentially explained by higher levels of education leading to healthier lifestyle choices.  

    So, not only was there a greater percentage of smokers among lower education groups, they also experienced a higher level of mortality than their more educated peers. 

    Aris says that a plausible explanation for this difference is that better educated groups adopt otherwise more healthy lifestyles than their lower educated smoking peers. 

    “You see a trend where those with a higher education adopt healthier lifestyles and have improved access to health care. Those are some of the drivers that could explain the different outcomes for the same diseases between different social groups.”  

    Another intriguing aspect of the CIA paper is that spending on healthcare may have a bigger longer term impact on improving life expectancy than directly increasing healthcare funding.  

    “Improved education is a preventive measure – possibly suggesting that increased spending on schools might, to some degree, be a better expenditure than increasing spending on health care, especially high-tech and expensive health care. 

    “Certainly, it appears that increases in education can double as investments in long-term health,” said the CIA report.  

    A US study mentioned in the CIA report compared the effect of Americans achieving a college degree with advances made in biomedicine between 1996 and 2002.   

    According to the US study, more lives would have been extended from the increase in education than from the medical advances. 

    There are further potential longevity-linked benefits from increased education spending.  

    Statistics Canada looked at the relationship between income and education on life expectancy as well as on health adjusted life expectancy and found that not only did individuals with higher levels of education live longer, they also had more years of good health than lower education groups.  

    “Higher income leads to a longer life in good health. Lower income leads to a longer end of life period in poor health. More income or more wealth provides the means for better health care and better lifestyle, both of which can lead to better longevity,” said the report.  

    Causation and correlation are, of course, two different things.  

    And while the current research into the relationship between education and longevity suggests that wealth may be superseded as the primary driver of life expectancy calculations, Aris says that it is not clear whether the data indicates causation or correlation.  

    “To say there is a direct cause-effect relationship between education and longevity is a stretch based on the research studies explored in the original literature review. However, while education may not cause longevity directly, it drives longevity through its connection to better employment, income generation and information gathering. 

    “Higher education not only leads to longer life, but it also leads to longer life in good health. Given this benefit of higher educational attainment, further research on how investment in education can lead to a healthier society is a good next step.”

    2024 - June Longevity and Mortality Trends Volume 3 Issue 6 -June 2024
    Share. Twitter LinkedIn Email

    Related Posts

    New Data Shows the Extent to Which American Seniors Are Missing Out by Lapsing or Surrendering their Life Insurance Policy

    14 May 2025

    Buy-Ins To Buy-Outs Appear Stalled As Deal Complexity, Administration Resources Pose Obstacles

    14 May 2025

    Is Servicing an Overlooked Source of Life Settlement Alpha?

    14 May 2025

    Q&A: Shelly Beard, Managing Director, WTW

    14 May 2025

    Comments are closed.

    Most Popular

    New Data Shows the Extent to Which American Seniors Are Missing Out by Lapsing or Surrendering their Life Insurance Policy

    14 May 2025

    Buy-Ins To Buy-Outs Appear Stalled As Deal Complexity, Administration Resources Pose Obstacles

    14 May 2025

    Is Servicing an Overlooked Source of Life Settlement Alpha?

    14 May 2025

    UK Life Insurers to Benefit from Robust Bulk Annuity Market in 2025

    14 May 2025
    Ad

    Your trusted source for capital markets participation in Life Risk

    X (Twitter) Instagram LinkedIn
    Life Risk
    • About Life Risk News
    • Get In Touch
    • Our Team
    • Copyright Notice
    • Terms and Conditions
    • Privacy Policy
    • Sitemap
    Coverage
    • Home
    • Features
    • Events
    • Commentary
    Subscribe

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT